Considering filing Bk7 because i owe almost $1m in Federal income taxes. However, what happens to my home that I want to stay in? Lender is on verge of serving foreclosure papers but I am about 3 years behind on 1st and 2nd. Does arrears go away and I can deduct off mortgage balance and just start new paying mortgage payments? How does that work? I went to see a BK attorney but he spoke in circles because I could not give him his $2,114 for fees. Uhhh
Peter Walter WestonBankruptcy AttorneyBellaire, TX ·
You probably should get more information, and seek a second opinion from an experienced bankruptcy attorney, if you do not understand the problems you have, and the choice of solutions available.
You have more than the usual list of problems, in terms of extremes.
The treatment of your largest debt, the IRS, may be of greatest importance, to decide what to do and when, and bankruptcy may not be the best choice.
Arrears on a house in chapter 7, do not go away, and will cause a foreclosure, and you will not likely be able to stay as an owner in the property.
There may be some relief available as to the house, if its value is less than the 1st lien balance, but only in a chapter 13 proceeding.
You may wish to re-evaluate whether you plan to keep the house.
Good luck.
You will lose your home if you file a chapter 7 and cannot bring the loans current. It might be possible to strip the second after the McNeal case in Florida, but you would still have to be current on the first. You need to see an attorney about the dischargeability of the taxes, so you can time your filing properly. In terms of the dollars at stake, it seems like your case should be guided by the taxes you owe, and not keeping your house.
If you cannot bring at least your first mortgage current you will lose your home. Filing a bankruptcy will only delay a foreclosure for a very short time. The bigger concern, though, may be your tax debt. You need to hire a bankrutpcy attorney if you decide to file, and not try to do this by yourself.
Orlando bankruptcy attorney. In a chapter 7 we cannot force creditors into a repayment plan. Arrearages on loans are discharged but if you want to keep the home, you have to keep current with the mortgage. That includes any arrearages. In some circumstances in the state of Florida, we can eliminate second mortgages but only if the value of the house is less than the payoff on the first mortgage. Unfortunately, that may change depending upon how the appeals court rules on a particular case. Also, a chapter 7 is not going to get rid of recent federal income taxes. It sounds to me like you need a bankruptcy attorney who also is very knowledgeable about taxes.
Eric L. Bolves, Esq. 2110 E. Robinson St., Orlando, FL 32803
407-894-1002
www.thelegalcenter.com
www.bkcinfo.com
