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Any loopholes that would allow us to file?


justbreathe
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We are a family of 4 in California.

Is there any way to keep our house if we filed ch7 or ch13? We have $175,000 in equity, which clearly exceeds the $75,000 family homestead exemption. Could a judge choose to make an exception in our case?

Our income is $2,000/mo. gross. After taxes, health ins. and union dues we bring home $1,300/mo. Our house payment is $655/mo. We have $20,000 in unsecured debt, accrued prior to dh losing his great paying job 3 yrs ago. Cap1 and Target have liens on our house and Cap1 is also going to garnish his wages.

I don't know what to do. Cap1's garnishment will be the straw that breaks the camel's back. If they take 25% of "disposable" income, we'll be done. We'll lose everything. I'm scared to death and stressed out.

Homes are NOT selling well in our area now, so even if we wanted to sell (we don't) it would take quite a while to do.

Please help.

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That $175,000 in equity is your answer, if you can actually capture that much.

You should be working frantically to sell your house. You should not be worried about getting top dollar, but worried about making sure you capture that equity before they foreclose on you.

Normally I would say try to borrow some of your equity but it sounds like your payments are already overly burdensome, so you should concentrate on paying your debts and moving forward.

What is the value of the house?

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That $175,000 in equity is your answer, if you can actually capture that much.

You should be working frantically to sell your house. You should not be worried about getting top dollar, but worried about making sure you capture that equity before they foreclose on you.

Normally I would say try to borrow some of your equity but it sounds like your payments are already overly burdensome, so you should concentrate on paying your debts and moving forward.

What is the value of the house?

Foreclosure is not on the horizon. We pay our mortgage first, never missed a payment.

I'm going to try to get an exemption from the wage garnishment (we're dirt poor, so it should work) and I just got a p/t job today so that will help.

Value of the house? Maybe $225-50k. Mortgage is $75k.

I'm not open to selling at this point. Long story short, selling would mean leaving the state and, as a result, our family, friends, our children would no longer see their grandparents.... not going to happen unless/until we are truly out of options. We're not quite there yet.

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I'm going to try to get an exemption from the wage garnishment (we're dirt poor, so it should work) and I just got a p/t job today so that will help.

If you were already served garnishment papers then there should have been some kind of garnishee's response letter in there. A lot of companies fail to supply that form when they are serving garnishment papers. Go figure. :rolleyes: If, you can find the garnishee response, it will allow you to be opted out on garnishment because paying 25% would put you below the poverty level for your family size. Call your local clerk of courts, they can help you find the form.

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I'm going to try to get an exemption from the wage garnishment (we're dirt poor, so it should work) and I just got a p/t job today so that will help.

Value of the house? Maybe $225-50k. Mortgage is $75k.

I'm not open to selling at this point. Long story short, selling would mean leaving the state and, as a result, our family, friends, our children would no longer see their grandparents.... not going to happen unless/until we are truly out of options. We're not quite there yet.

Why on earth would you consign yourself to poverty? Sell the house and use the money to relocate where job opportunities are better. I'm sure the grandparents would prefer seeing their children and grandchildren propsering in a new location than withering on the vine just to stay close to home.

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I'm going to try to get an exemption from the wage garnishment (we're dirt poor, so it should work) and I just got a p/t job today so that will help.

Value of the house? Maybe $225-50k. Mortgage is $75k.

I'm not open to selling at this point. Long story short, selling would mean leaving the state and, as a result, our family, friends, our children would no longer see their grandparents.... not going to happen unless/until we are truly out of options. We're not quite there yet.

Why on earth would you consign yourself to poverty? Sell the house and use the money to relocate where job opportunities are better. I'm sure the grandparents would prefer seeing their children and grandchildren propsering in a new location than withering on the vine just to stay close to home.

We're not consigning ourselves to poverty! Our financial situation is temporary. DH works for the railroad. Once he is called back from retention (meaning, he's being paid a stipend to stay home) and has some seniority things will be much, much better. We need to just hold tight until then. This isn't forever. Until then, we're getting p/t jobs to supplement retention pay and practicing patience.

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Not knowing the whole situation, you may also be able to get medical, food stamp assistance. When I was pregnant with my last son I needed to be off of work for 3 months and only received 60% of pay. This made me eligible for medical and food stamp assistance even though I had a good job and was still being paid. They just prorate what you're eligible for. Once you're out of your rut and back to normal income, the assistance will just drop off. It's at least a backup for now and might as well make use of what our tax dollars are paying for. :p

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