I DON’T KNOW WHAT TO DO. I AM BEHIND ON MY MORTGAGE AND MY HOME IS UNDERWATER. I ALSO RACKED UP A TON OF CREDIT CARD DEBTS. DO I FILE A CHAPTER 7 OR CHAPTER 13?
If you just got back to work and it would be difficult to resume your mortgage and pay an additional trustee payment, the best option at this time may be to clean up the unsecured credit card debt and get a fresh start.
After you are discharged is Chapter 7, you always have the option of then filing a Chapter 13 to try to cure the mortgage arrears or seek a loan modification while in Chapter 13.
The reason that I recommend this approach is that if you initially try a Chapter 13, you may have a trustee payment you cannot afford or may not be able to do a zero dividend to unsecured creditors. Thus, the Chapter 13 will not be successful and you will still have all those unsecured debts hanging over you, while the Chapter 7 wipes out all the debt and gives you a fresh start.
Also, many clients initially don’t want to save their home and then decide that they have changed their mind and wish to try to preserve their real estate even if it is underwater.
If you have any questions concerning this matter or any other matter contact TAIEBLAW at 856-235-4994.
Steven N. Taieb, Esq. is here to help you and is a South Jersey Bankruptcy Attorney who has helped over 7000 people with their financial problems for the past 33 years and is board certified in consumer bankruptcy law by The American Board of Certification which is accredited by The American Bar Association.
We are more than happy to discuss all your options and to see if bankruptcy is the best option for you.