Expert: Mark J. Markus- California Bankruptcy Attorney - 11/16/2008

Question
My husband and I own a home in Los Angeles which we purchased when I was earning a significant income. I am on social security disability now and our income has dropped by almost half. My question is this, will a trustee allow us to file chapter 7 if our mortgage payment is more than 50% of our monthly income? Or would a chapter 13 be more likely to be approved, even if it meant a very small payment to our creditors?

Also, if a trustee would not allow us to keep our home with its large mortgage payment and we chose to surrender it in the bankruptcy, how long would we have before we had to vacate the premises?

Lastly, what are the likely legal fees with filing a chapter 7 or 13, and in the case of a 13, can they be included with the payment plan?

Answer
Trustees do not make determinations as to whether a case is "approved" or not.  There is not enough information here to determine whether a Chapter 7 or 13 would be your best option, or which you would be eligible for.  If you would like to schedule a consultation to go over your situation in detail, I would be happy to assess your situation.   To prepare for this, please visit http://www.bklaw.com/consult/ and complete the 5 steps there to schedule an appointment.