Legal Question in Bankruptcy in Alabama

What is better for us, 7 or 13?

We have a horrible ameriquest mortgage and a 25k 2nd mortgage and our credit is horrible due to so many loans we have gotten to try and get us out of other debt, now we don't know what to do. Our mortgage is not a fixed rate and it just keeps going up and up, we are facing certain bankruptcy and just really want a fresh start. We know we can pay our bills if we just had a new start. What should be do? Our home is not worth what we owe on our 1st and 2nd mortgages! Help, any advice would be very appreciated!


Asked on 6/15/07, 4:04 pm

1 Answer from Attorneys
Randal Ford Ford Firm

Re: What is better for us, 7 or 13?

You really need to sit down with an attorney and talk about your situation.

Depending on your income, and whether you wish to "dump" your house, etc. will determine whether the bankruptcy court will LET you file a chapter 7 or REQUIRE that you file a chapter 13. If you get an apartment (which can be difficult if you own a home already and is MORE difficult if you filed bankruptcy - the landlord sees all this on your credit report)you may have MORE diposable income than you did when you were paying two mortgages. If you have income left over each month after paying your expenses you might well have to file a chapter 13.

Get out the phonebook and find an attorney in your area who can help you with bankruptcy.

Good luck.

Read more
Answered on 6/15/07, 9:30 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in Alabama