QUESTION
Should I file some type of bankruptcy or not ?
Asked on Dec 13th, 2016 on Bankruptcy - California
More details to this question:
I am 75 years old, disable, lost my job and can't return to the same type of work. I own my home with a reverse mortgage, I have 2 older cars, car age 2005 , 2007. my home is value at $800,000.00, my reverse mortgage is $511,000.00. My only income is $600.00 disable army, $1100.00 SS. Which just pays my base expense. I would like to go back to school to get job I can work at home with my disable. Is there some type of bankruptcy that would buy me time to go to school and get a job to pay my debit of $60,000.00. of wich $30,000.00 is a new roof
1 ANSWER
Bankruptcy Attorney serving Burbank, CA
Partner at
Law Office of Mark J. Markus
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3 Awards
If the reverse mortgage is the only debt against your home and it is really worth $800,000, you have more equity than you can protect in a Chapter 7 case, and would have to provide for close to a 100% repayment of the debt in a Chapter 13 case and that would require a payment of close to $1,000 per month which you probably cannot afford.
The good news is your creditors can't take your SS benefits, so they would be left with putting a lien against your home (or trying to sell one of your cars, but that's highly unlikely). Unless you plan on selling your home or refinancing, that won't really affect you until that time (at which time they would get paid from the sale, although plus accrued interest).
You should probably have a consultation with a bankruptcy attorney in your area to go through things in more detail, but it sounds like doing nothing is an option for the time being.
Answered on Dec 14th, 2016 at 10:31 PM