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We Filed Chapter 13 to Save Our House But Can’t Keep Up With Payments. – Jennifer

By on April 19, 2013
We Filed Chapter 13 to Save Our House But Can’t Keep Up With Payments. – Jennifer

“Dear Steve,

My husband filed chapter 13 in Dec 2012 to save our home and we just cannot make the large payments….most of the bankruptcy payment is the house debt. Chase says we now owe $286k and our home is only valued and purchased at $254k. Should we surrender in chapter 13 we are 2 months behind now again?

Our lawyer says we do not qualify for chapter 7. Should we surrender and could Chase sue us for the balance if we are chapter 13?

I think our lawyer said they have 60 days to prove that defiency? Do the banks usually sue with chapyer 13?

Also, our lawyer said we have a few months to surrender but we are getting papers now from Chase and I do not think it would be wise to wait. I am so confused and husband is going down to our lawyers Office and my questions are not getting answered. My husband and I are having a hard time trying to get the facts clear. Please help we have 5 kids and it is hard now.


Drowning swimmer

Dear Jennifer,

I’d suggest you talk to a couple of different bankruptcy attorneys in your area and ask them if they can get you to qualify for a chapter 7 bankruptcy. Not all bankruptcy lawyers want to invest the time to do everything they can to get you qualified.

The best outcome would be for you to hand the house back and wrap everything up in a chapter 7 bankruptcy to get a fresh start.

What the bank will do is dependent on what state you live in but it sounds like you were unwilling to part with the home in 2012 and filed bankruptcy to try and keep it.

Get a second and third opinion and then report back in.

The reality is it does not sound like you can. It’s not an uncommon path people take.

READ  I'm Being Sued for My Debt But Can't Afford a Chapter 13 Bankruptcy Payment. - Emily

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About Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.


  1. DocsToWork

    April 20, 2013 at 4:37 pm

    Unfortunately that’s a very common scenario many debt distressed homeowners find themselves in. Great advice.

  2. Ira Smith

    April 20, 2013 at 3:36 pm

    As always Steve, great advice. Continued success.

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