Ask Me Help Desk - Unable to pay for second home and a prior BK

I really need some advice here; I am in a serious mess.

I purchased a second home about 4 months ago thinking my first house has been sold. Well the deal fell through and now I am stuck with two house payments. I have cut back on my profit to $0 in the house I am trying to sale, I have tried to rent it any thing you can think of I have tried it. I am now out of money and if I keep paying for both I will start to fall behind some ware. I have been communicating with the bank and we are now at a point where we are talking about me deeding the property back to them.
I would file a BK case but I am unable to, due to filing 4 years prior over a divorce. But the only hope I have is that my wife can file a 13 and discharge her portion of the debt and a few cards and some other major medical bills. I understand if she discharges the debt "the house we are not living in" they can come after me. I have had some legal advice and I was told that I can in fact file a 13 but cannot discharge any debt. This would prevent the bank from garnishing my check's etc. The way I look at it our credit is already destroyed and a foreclosure or giving back the second property is unavoidable. So we plan for her "my wife" to file a 13 and discharge all of the debt in her name and keep our current home and any debt that we have together to provide me with the Co debtor stay. But for me the only option is to file a 13 without discharging any debt but to block the garnishments. I actually have no equity in anything just more debt, cars, cards, etc etc I am actually sort of glad of this because if I did the bank would probably take it.

Any thoughts or help would be really appreciated.

It is my understanding that you are eligible to file a Ch 13 after a Ch7 discharge as long as you are paying all creditors in full.

Quote:

Originally Posted by tb7677

I really need some advice here; I am in a serious mess.

I purchased a second home about 4 months ago thinking my first house has been sold. Well the deal fell through and now I am stuck with two house payments. I have cut back on my profit to $0 in the house I am trying to sale, I have tried to rent it any thing you can think of I have tried it. I am now out of money and if I keep paying for both I will start to fall behind some ware. I have been communicating with the bank and we are now at a point where we are talking about me deeding the property back to them.
I would file a BK case but I am unable to, due to filing 4 years prior over a divorce. But the only hope I have is that my wife can file a 13 and discharge her portion of the debt and a few cards and some other major medical bills. I understand if she discharges the debt "the house we are not living in" they can come after me. I have had some legal advice and I was told that I can in fact file a 13 but cannot discharge any debt. This would prevent the bank from garnishing my check's etc. The way I look at it our credit is already destroyed and a foreclosure or giving back the second property is unavoidable. So we plan for her "my wife" to file a 13 and discharge all of the debt in her name and keep our current home and any debt that we have together to provide me with the Co debtor stay. But for me the only option is to file a 13 without discharging any debt but to block the garnishments. I actually have no equity in anything just more debt, cars, cards, etc etc I am actually sorta glad of this because if I did the bank would probably take it.

Any thoughts or help would be really appreciated.

What I am trying to say is the only option I can see is for my wife to file a 13. Discharge anything just in her name and crunch down any remaining debt into a 13 repayment plan. All of this just hoping I can afford the difference I will have to pay the bank after they sale my other home.

I agree with being able to file a 13 and repay in full, but if I am repaying them in full that really doesn't get me any less payments.

I can see where you are in trouble on the second house payment. If the house is sold for less than the debt, you will be liable for the deficiency. Do you mean that your wife could file Chapter 13 or Chapter 7?

Quote:

Originally Posted by George_1950

I can see where you are in trouble on the second house payment. If the house is sold for less than the debt, you will be liable for the deficiency. Do you mean that your wife could file Chapter 13 or Chapter 7?

Yes she can file a 7 or a 13. Our plan is to let her file a 13 discharge the unwanted house and keep what we want roled over into a 13 plan, cars, current house, etc. But if she discharges the unwanted house there is no Co debter stay and they can come after me.

But I didn't think about the 13 completely with the point you made in the second post. I can file a 13 and prevent a garnishment but the part I forgot about was IF the bank does try to get me for the unpaid balance on the home I could place this into a 13 plan but just not discharge it.

Maby after we remove some debt with her 13 and crunch some other stuff into a 5 year plan we will have reduced our monthly bills enough that I can somehow manage the difference from the sale of the unwanted house. Geeez what a crappy position to be in.