“Dear Steve,
Husband’s employer closed. He is now receiving Social Security and unemployment. I work a full-time and part-time job and have a little pension check. Our credit card debit is no longer manageable. My husband wants to file chapter 7. He thinks I should file chapter 13. I co-own some property and have $20,000 left in my 401K.
If my husband files chapter 7, the credit cards that I am on with him will come after me. I really do not want to sell my share of the property that I have with my mother, brother and sister. How can I get out from under this debt. We want to keep our house. We have filed for a upside down mortgage with CitiBank.
Cathy”
Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.
Dear Cathy,
Wow, thank you so much for sending the numbers along.
That is certainly a substantial amount of debt.
I have some additional questions for you on the debt.
- Is the Bank of America line of credit secured by the house?
- How much is your house currently worth and how much is due on the first mortgage? It’s a bit confusing since you list two amounts due Citi Mortgage.
- Does you want to keep the car in his name?
- Tell me a bit more about that other property.
With a little clarity we can get to the bottom of this.
Please post your responses and follow-up messages to me on this in the comments section below.
Hi Steve,
Sorry to be so long in getting back to you. I work two jobs.
Q.1 The line of credits are not tied to the house. Personal signature loans.
Q.2 Current value of house is $ 170,000. Owe $240,000 on and first and second mortgage.
Q.3 He can protect the car in his Chapter 7. Okay to leave in his name.
Q.4 I am a third owner of a 1/4 acre vacant lot in a coastal village in south Georgia.
I am a fourth owner of a 1/4 acre lot with a house valued at $120,000 in the same coastal village. I am a third owner of a 100 acre farm with old house and pine trees.
Thank you,
Cathy