What are my options for bankruptcy? 11 Answers as of January 08, 2011

I own a mobile home that sits on 1 acre of land I own, I am behind on the home payments, have a over due student loan, medical bills, my income does not reach my bills, I am either late on the land or I am late on the house each month. The medical bills, and student loan never get paid. I get 300 a month in child support for my 2 grandchildren, and I waitress and average about 900 a month. What are my options when it comes to bankruptcy, Chapter 7 or 13?

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Mankus & Marchan, LTD
Mankus & Marchan, LTD | Tony Mankus
It sounds like you are a good candidate for a Chapter 7 bankruptcy, although you may may lose the mobile home and the 1 acre of land it sits on if the equity in them exceeds the exemption amount in your State. You need to consult with a good bankruptcy attorney.
Answer Applies to: Illinois
Replied: 1/8/2011
DiManna Law Office, LLC.
DiManna Law Office, LLC. | Dawn DiManna
You should be able to file a Chapter 7 based on the information that you have provided to here.
Answer Applies to: New Hampshire
Replied: 12/30/2010
Carballo Law Offices
Carballo Law Offices | Tony E. Carballo
You may exempt your mobile home and land as your homestead but there are limits depending on your marital status, age and maybe income depending on you age. It sounds like you owe money on the land and the mobile home so you might not have that much equity. One acre of land could be worth a lot of money or very little depending on its location. Without all that information it is impossible to determine if you can exempt the mobile home and land it sits on.... That will determine whether or not bankruptcy is an option for you at all. Chapter 13 might be needed to pay any back payments on the mobile home and land in a Chapter 13 Plan since those are secured debts generally. Before filing for bankruptcy you need to find out if you can keep what you have and that depends on available exemptions which require information that you do not provide in your question. Your income is low and not a factor for Chapter 7 but for Chapter 13 you need to have enough income to make the required Chapter 13 Plan payments so that you can keep the mobile home and land. You need a consultation with a local bankruptcy attorney and need to provide him or her with information regarding the value of the mobile home and land, the balances of any loans outstanding against them and the amount you are behind on the payments. Talk to a real estate agent before seeing the attorney so that you can have a good idea of the value of the land and mobile home. Also, find out from the bank how much is owed on payments not made on the mobile home and land. That will help the attorney determine the payments that will be required in the Chapter 13 Plan if you are going to keep the mobile home and land.
Answer Applies to: California
Replied: 12/29/2010
DiTocco Law Group, PLLC
DiTocco Law Group, PLLC | Tony DiTocco
You appear to qualify for chapter 7 in Florida. If you call our office we can try to assist you.
Answer Applies to: Florida
Replied: 12/29/2010
Stuart Jon Bierman  Attorney at Law
Stuart Jon Bierman Attorney at Law | Stuart Jon Bierman
I would need more information to give you a comprehensive answer. In general, from what you have said it looks like you might be a good candidate for Chapter 7 if you do not have any or much equity on the home or the land. If you do have equity, maybe a 13 would help or maybe not, and you may or may not qualify, there are several applicable factors so this is something that you should discuss with an attorney.

Also, another thought, if you qualify for a 7 you might be able to get the student loans discharged if it could be shown that it would be a significant enough hardship to pay the student loan. That would depend upon several things including your health, the need for you to take care of the grandchildren, and other factors.
Answer Applies to: New Jersey
Replied: 12/29/2010
    Christopher Legal Group
    Christopher Legal Group | Shawn Christopher
    From what you describe, it appears that you should easily qualify for a chapter 7 Bankruptcy. In a chapter 7, you can extinguish the medical bills, and debt associated with the land and mobile home, provided that you do not want to keep either the land or mobile home. The student loan debt is another issue. It is difficult to erase student loan debt in bankruptcy. Also, do you have any equity in the land or mobile home? If so, then this may affect how you should proceed.

    If you want to explore keeping the land and mobile home, then a chapter 13 may work. It would allow you to catch up on past due payments. However, I am very concerned that you do not have enough income to make a chapter 13 feasible.
    Answer Applies to: Nevada
    Replied: 12/29/2010
    Law Office of Raymond J. Dague, PLLC
    Law Office of Raymond J. Dague, PLLC | Raymond J. Dague
    I really need more information to give a good opinion about this one. Basically you should file bankruptcy as a Chapter 7 if your current expenses are paid by your current income. I mean current expenses, not the mountain of debt you have. But keep in mind that student loans cannot be gotten rid of in a bankruptcy. However if your income is really low, student loans can often be deferred or rescheduled with the government. But if your problem is a lack of income to pay current expenses, bankruptcy will not be that helpful to you. You really to talk to a bankruptcy lawyer to explain your situation in greater detail to see if it is a viable option for you.
    Answer Applies to: New York
    Replied: 12/29/2010
    Law Offices of Lady Justice
    Law Offices of Lady Justice | Mona Patel
    New bankruptcy laws have been put in place that help people who live in mobile homes. If your mobile home is fixed to your property, then it can be categorized as real property. Student loans cannot be discharged in a bankruptcy but a chapter 13 can help you repay them along with any other debts you may have, however based on the income you provided, you may run into some issues funding a chapter 13 repayment plan. Your medical bills and any other unsecured credit card debt can be eliminated in a chapter 7. You may want to try and modify the loan on your mobile home to a lower a payment. Without more information it would be difficult to give a real assessment of your financial situation or advise you of which direction to go. There are bankruptcy attorneys that offer payment plans, you may want to see if you can work something out to fix your situation.
    Answer Applies to: California
    Replied: 12/29/2010
    Steven D. Keist, Attorney at Law
    Steven D. Keist, Attorney at Law | Steven D. Keist
    This is a very complex question. You can do either a Ch 7 or a Ch 13 but it is dependent on your income as to whether or not a Ch 13 (reorganization plan) will be helpful in saving your house and land, if that is your intent. You would certainly qualify for a Ch 7 but it would not help you with saving your house and land, it would temporarily stop a foreclosure process but said process could be restarted upon the filing of a Motion taking the property and house out from the protection of the Bankruptcy.
    Answer Applies to: Arizona
    Replied: 12/29/2010
    Greifendorff Law Offices, PC
    Greifendorff Law Offices, PC | Christine Wilton
    You likely qualify to file under Chapter 7. Depending upon your goals, you may choose to file under Chapter 13. Depending upon your situation, you may seek to litigate against the student loan creditor to discharge that debt also. I suggest you consult with an attorney before proceeding.
    Answer Applies to: California
    Replied: 12/29/2010
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    That depends on what you want to accomplish as well as a lot of other factors that need to be properly analyzed to determine your best option. You most likely will qualify for a Chapter 7 case, but that is not going to fix the arrearages on your mobile home, so if you want to keep that, you'd have to find a way to catch up on the payments. Depending on the value of the land you own and your other assets, they may be at risk in a Chapter 7 as well, but you have not provided any of that information.

    Chapter 13 can allow you to catch up on the mobile home payments, etc., but you may have insufficient income to do that.

    You need to have a comprehensive consultation with a bankruptcy attorney to assess your options.
    Answer Applies to: California
    Replied: 12/29/2010
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