My current mortgage is $1500...I am currently in foreclosure (sale date in June)....thinking about Chapter 13... If I proceed with Chap 13, is that ONLY including my arrears...OR would it be arrears+current monthly payment + other debts(credit card, auto, etc)? All paid through the trustee? Now for the advice...my house is currently on the market and I received a FULL price offer today...no contract in hand and I know people can say one thing today and change their mind tomorrow...it would be BARELY enough to cover my mortgage loan but would leave me NO money for relocation, movers, etc...and while this may allow me to avoid foreclosure and bankruptcy, I am thinking about proceeding with the bankruptcy filing and staying in my home...at least for a year so I can build up some savings... Has anyone sold their house while going through bankruptcy and downsized to a smaller home that you purchased(not a rental)? I know you have to go through the courts but were you able to do it and keep some of the proceeds to use for a down payment? Or did they take the funds to pay the creditors? How did you find a mortgage loan if you were in bankruptcy?
It sounds like you have not spoken to a bankruptcy lawyer yet. Almost all offer free consultation. Please see one ASAP. They will tell you about your states homestead exemption. Every state has a different number. Basically it determines how much of your homes value you can keep in a bankruptcy.