Tino717 Posted November 28, 2004 Report Share Posted November 28, 2004 I owe $275,000 in credit card debt, $105,000 Mortgage Balance. Home appraised at $350,000. About 4 accts in collections, none charged off yet, been transfering balances to make my pmts, now I am Maxxed out on my credit cards. I am out of work, my income for 2004 YTD is $5,000. Other than my home, have no other assets.. I am current on my MTG. I live in NY. What should I do, sell home & pay the creditors at a reduced amount, try to refinance.. File Bankruptcy, is that even possible with the equity that I have in the home ?? Thanks Link to comment Share on other sites More sharing options...
willingtocope Posted November 28, 2004 Report Share Posted November 28, 2004 Well homestead exemption in NY is only $10,000 (double that if you're married) so it looks like one way or the other, you'll lose the house.$275K is a LOT of credit cards. Is that all personal, or is some of it business related?Without a job, your options are limited. A refi on the house would be really difficult. With that much equity a BK 7 trustee is going to be interested in your house. Chances are the trustee will sell the house and pay your creditors. Problem is (like me) then you'll have to try to find a place to live. You might be able to sell the house on your own, use the proceeds to negotiate with the CCs and walk away with a little of the money, but that sounds like a long shot. Link to comment Share on other sites More sharing options...
travelgrl Posted November 28, 2004 Report Share Posted November 28, 2004 GOOD GRIEF! $275K?? That is amazing. You need to check what the exemptions are in your state. If you file BK 7 it is likely you will not be able to keep you home with the equity. I would speak to several BK Atty's in your area to discuss your options. Link to comment Share on other sites More sharing options...
Recommended Posts