While it is good news that home prices in Modesto and Stanislaus County, California outpaced home prices in the rest of California in 2014, it creates challenges for homeowners with unmanageable debts. The median home price sales in Modesto and Stanislaus County, California was $220,100 in November, 2014, about 19% more than in November, 2013. The housing market elsewhere in California isn't doing as well. The median home price sold in Stockton and San Joaquin County, California was $245,00 in November, 2014, about 6.5% more than in November, 2013. (Source: The Modesto Bee)
This is bad news for homeowners with unmanageable debts as it may limit your options under the Bankruptcy law. Qualification for Chapter 7 Bankruptcy depends on your income and property values. If your income is too high or you have too much equity in your home and you want to keep your home, then Chapter 7 Bankruptcy is not an option for you.
If you cannot negotiate with your creditors, you might want to consider Chapter 13 Bankruptcy. Chapter 13 Bankruptcy is a repayment plan to your creditors. How much of your debt you have to repay depends on your property values and income less reasonable and necessary expenses. For example, a homeowner with $180,000 equity will have to repay a higher portion of their debt back than a homeowner with $105,000 equity. Chapter 13 Bankruptcy does NOT necessary mean that you have to repay 100% of your debt back. However, as home prices increases, that may be the case.
Don't delay. As home prices increase, your options under the Bankruptcy law will be limited. Call Muoi Chea, an experienced Bankruptcy Attorney to determine which bankruptcy chapters you qualify for as well as bankruptcy alternatives. If you decide that bankruptcy is your best option, I will quote you a reasonable attorney fee and work out an affordable payment plan.