Texas Bankruptcy Blog : Texas Bankruptcy Lawyer & Attorney : Fears Nachawati law Firm : Chapter 7, Chapter 13, Consumer Bankrutpcy : Dallas, Fort Worth, Austin, Houston, San Antonio

Bankruptcy attorneys know that owing a debt that you cannot repay causes the debtor many headaches.  First, there are the collection calls and letters.  These collection actions are meant to harass you into paying something on the debt.  Since the creditor only has a certain number of years to collect before the statute of limitations runs, after a few years the creditor will file a lawsuit against you.  After the creditor obtains a judgment, the statute of limitations clock is reset and the creditor has more time to collect by garnishing wages, or seizing bank accounts or property.  In some cases, the creditor may have twenty years or more to collect on a debt!  During this time fees and interest can increase the balance of the debt many times over.

An unpaid debt has serious consequences to your credit report.  Any debt that is more than 90 days delinquent indicates that the individual is experiencing serious financial problems.  A debt stays on your credit report for seven years after the date of the last payment.  Even after the debt drops off your credit report, if the creditor sues you the judgment will be reported for an additional seven years.

One of the chief benefits of a bankruptcy discharge is it provides a final resolution of your unpaid financial obligations.  The bankruptcy discharge is a permanent injunction ordered by the bankruptcy court against your creditors forbidding any collection action against you, forever.  The discharge order is extremely powerful and the penalties for a creditor who violates this federal court order can be severe.

A report of your bankruptcy case will stay on your consumer credit report for ten years after the date you file bankruptcy (not from the date of your bankruptcy discharge as many believe).  While on the surface a bankruptcy stays on your credit report longer than a bad debt (ten versus seven years), the truth is that a bad debt can linger and significantly harm your credit score for much longer than ten years.  After a bankruptcy your debts are reported as “discharged in bankruptcy” with a balance of “zero.”

If you are struggling with debts you cannot afford to pay, consider filing bankruptcy sooner rather than later.  The sooner you discharge your debts, the sooner you can begin your financial recovery.  Delay in filing usually results in further harassment, lawsuits, and difficulties.  Contact an experienced attorney today and discuss your legal options for discharging your debts.

Fears & Nachawati Law Offices

4925 Greenville Ave Suite 715, Office 1, Dallas, TX 75206 (214) 890-0711  Google Reviews ‎  |  fnlawfirm.com  |  Directions

A recent study by the University of Michigan School of Law has found that an increasing number of people over the age of 65 are filing for bankruptcy protection.  The study states that even before the financial meltdown of 2008, the percentage of older Americans filing bankruptcy had risen steadily, from 2 percent in 1991 to 4 percent in 2001 to 7 percent in 2007.

The reasons for these older people filing bankruptcy are varied, but the study found that “the dominant force appears to be overwhelming burdens related to credit cards.”  Researchers found that elder bankruptcy debtors reported 50% more in credit card debt than younger bankruptcy debtors.  Credit card interest and fees were cited as a reason for filing bankruptcy 50% more frequently.  This suggests that elder debtors rely upon their credit cards more that younger debtors.  The author of the study, law professor John Pottow, states, "These findings are both striking and ominous."

Debtors over 65 had a median credit card debt of $22,562, while younger debtors had a median of $13,615.  Nearly 60 percent of elder debtors said their financial troubles resulted from medical bills.

Financial struggles can be especially overwhelming for someone on a fixed income.  While younger debtors may be able to juggle finances, increase income, or decrease expenses in order to pay off debt, in most cases an older debtor’s fixed income pays only for the bare necessities.  There are few options to paying off high interest credit card debt.  In some extreme cases an elder debtor may forego necessary medicine, food, or utilities in order to pay monthly credit card payments.

If you have an older loved-one who is experiencing credit card debt, speak with an attorney and discover how the federal bankruptcy laws can relieve burdensome credit card bills.  Bankruptcy is powerful protection against creditor harassment, lawsuits, and income garnishments.  For most elder debtors, credit card debt can be discharged without losing any property.  Call today and protect your property and your peace of mind.

Fears & Nachawati Law Offices

4925 Greenville Ave Suite 715, Office 1, Dallas, TX 75206 (214) 890-0711  Google Reviews ‎  |  fnlawfirm.com  |  Directions

In the wake of the “robo-notary” scandal that has prompted federal investigations into the foreclosure processes of several large banks, another “robo” scandal against consumer debtors has been resolved.  Allied Interstate Inc., a large Minnesota debt collection agency, has agreed to pay $1.75 million to settle a case filed by the Federal Trade Commission.  The FTC alleged that Allied use robo-dialers to automatically call the same people multiple times a day, and in many cases attempted to collect debts that individuals didn't owe.
 

Allied Interstate Inc. has a history of consumer complaints.  According to the Minneapolis Star Tribune, the FTC’s federal lawsuit alleged that Allied continued to use its robo-dialing software to call consumers even after it learned it was calling the wrong person or after the individual insisted the debt was not valid.  The FTC lawsuit also alleged that debt collectors spoke to neighbors, co-workers or others about a consumer's debts, and threatened legal action it didn't intend to take.  Both of these practices violate the Fair Debt Collections Practices Act, a federal law that protects consumers.

The settlement is the second largest civil penalty the FTC has ever obtained against a debt collection firm. A FTC spokesman stated that the lawsuit and resulting settlement sent a message to the collections industry that repeatedly calling consumers who dispute a debt is not tolerated.

If you are being harassed by collection firms and need assistance with your debts, consult with an attorney and learn how the federal laws can help you.  Once you have hired an attorney the federal law forbids third parties (like collection agencies or collection attorneys) from contacting you, your neighbors, or your employer.  The collector must speak with your attorney.  Furthermore, once you file a bankruptcy case, you are under the protection of the federal court and any subsequent contact or collection action is punishable by contempt of court.  Don’t put off getting help.  Contact an experienced bankruptcy attorney today.

Fears & Nachawati Law Offices

4925 Greenville Ave Suite 715, Office 1, Dallas, TX 75206 (214) 890-0711  Google Reviews ‎  |  fnlawfirm.com  |  Directions

The federal Bankruptcy Code provides many options for an individual to reorganize his finances.  In some cases, a Chapter 7 debtor may decide that he can no longer afford to make the monthly payments on a secured loan.  This may be a loan secured by real estate, a vehicle, or personal items.  When the monthly payment is not affordable, the debtor should consider his options.  These options may include restructuring the debt through Bankruptcy Code provisions such as re-writing the note in a reaffirmation agreement, lien-stripping, or redemption.  The debtor may also consider using a non-bankruptcy option such as refinancing.  Whatever the decision, the general rule in bankruptcy is that secured items must be paid for or returned to the secured creditor.

The best financial decision for the debtor may be to simply "walk away" from a secured debt.  Surrendering property back to a creditor is not an easy decision, but in many cases it can be a very liberating experience.  Surrendering property is usually as simple as coordinating a time between your attorney and the creditor, and then delivering the property.  Once the creditor takes possession of the property, the debt is no longer secured and is discharged at the end of the Chapter 7 bankruptcy case.  It is important to continue to safeguard the property and maintain insurance until the property transfer is completed.

The threat of surrendering the property can be a highly effective negotiating tool.  In most cases the creditor doesn't want the property, it wants the money.  Taking property is a costly expense to the creditor and the threat of surrender may open the possibility for negotiating affordable terms during reaffirmation, redemption, or cram-down.

If you have secured property you can no longer afford to keep, consider surrendering the property during a Chapter 7 bankruptcy and "walking away" from the debt.  Discuss your options with your attorney and learn how the federal Bankruptcy Code can help you restructure your finances.

Fears & Nachawati Law Offices

4925 Greenville Ave Suite 715, Office 1, Dallas, TX 75206 (214) 890-0711  Google Reviews ‎  |  fnlawfirm.com  |  Directions

For many tithing is much more than simply a donation to a church, synagogue or mosque.  When a person files bankruptcy, the issue is whether charitable donations should continue while the person is seeking a discharge of financial obligations under the federal bankruptcy laws.  Fortunately, Congress has answered this question.

After Congress passed the bankruptcy reform bill in 2005, several bankruptcy courts gave contradictory opinions as to whether a debtor in Chapter 13 bankruptcy should be allowed to continue tithing.  One bankruptcy court found that under the 2005 changes a Chapter 13 debtor could not tithe until unsecured creditors were paid.  In response to these differing opinions, Congress passed the Religious Liberty and Charitable Donation Clarification Act of 2006 which clarifies a debtor’s right to continue tithing during bankruptcy.  Under this law bankruptcy debtors are allowed to continue tithing and can include it as an expense in the proposed monthly budget submitted to the bankruptcy court.  Debtors are permitted to contribute up to fifteen percent of their yearly gross income. 

If you intend to contribute a significant amount of your income to tithing or to charitable donations, the bankruptcy trustee may require proof that you have made similar contributions in the past.  If it appears that you have suddenly started tithing on the eve of bankruptcy, the trustee may object to your newfound generosity and claim that it is a fraudulent attempt to avoid paying creditors.  On the other hand, if you have consistently donated to a church in the past, you will be allowed to continue your donations.  Finally, if the bankruptcy court confirms a plan that includes tithing or charitable contributions, you are expected to follow through.  If you find that you are unable to make the donation, contact you bankruptcy attorney immediately.

For the debtor who can demonstrate a history of charitable donations, donating and tithing during bankruptcy are protected by federal law.  Discuss your intent to tithe or make charitable donations with your bankruptcy attorney.  Your attorney can help you determine the appropriate donation level to help your religious organization and help yourself during bankruptcy.

Fears & Nachawati Law Offices

4925 Greenville Ave Suite 715, Office 1, Dallas, TX 75206 (214) 890-0711  Google Reviews ‎  |  fnlawfirm.com  |  Directions

Bankruptcy attorneys see people from all cross-sections of our population.  Most people have a good understanding of their financial obligations and know who they owe.  Others bring in grocery store bags and boxes full of bills they have collected for months and, in some cases, years.

It is very important to identify all of your creditors when you file a bankruptcy.  The Bankruptcy Code requires that you list all of your creditors, even those you want to pay in the future.  You must also make a good-faith effort to list the amount owed to the creditor.

There are two excellent sources for discovering who you owe.  The first is the US Postal Service.  Creditors and collection agencies are very good at sending monthly bills when you owe them money.  Collect your mail for a month and you will have a good start on listing your creditors.

The second excellent source for creditor information is your credit report.  There are three main consumer credit reporting agencies:

Equifax

http://www.equifax.com/

800-685-1111

P.O. Box 740241

Atlanta, GA 30374-0241

Experian

http://www.experian.com/

888-397-3742

P.O. Box 2104

Allen, TX 75013

Trans Union

http://www.tuc.com/

800-916-8800

P.O. Box 2000

Chester, PA 19022 

Each of the above consumer credit reporting agencies are required by federal law to provide one free credit report to you every 12 months.  You can obtain an absolutely free credit report from Equifax, Trans Union, and/or Experian by visiting the following website: https://www.annualcreditreport.com/cra/index.jsp

Obtaining a copy of your credit report is a very good step in making a good-faith effort to identify all of your creditors.  However, it is important not to rely exclusively on the information contained in the credit reports.  Not all creditors report to the credit reporting agencies.  Additionally, the information contained in your reports may be inaccurate, outdated, or incomplete. 

If you are considering a bankruptcy filing, get a free copy of your credit report and seek legal assistance.  You and your bankruptcy attorney can review your credit report and assess you financial situation.  While bankruptcy isn’t the answer to all financial problems, it can provide powerful relief to people who are buried in debt.

Fears & Nachawati Law Offices

4925 Greenville Ave Suite 715, Office 1, Dallas, TX 75206 (214) 890-0711  Google Reviews ‎  |  fnlawfirm.com  |  Directions

Recently allegations have been made against several prominent mortgage lenders claiming the use of flawed and in some cases fraudulent documents during the foreclosure process.  In one GMAC Mortgage has been accused of using a “notary-mill” to crank out upwards of 10,000 foreclosure documents each month without reviewing the documents.  Similar accusations have been leveled at Bank of America.  In states that use judicial foreclosure, this activity amounts to a fraud upon the court and is illegal.

JPMorgan Chase, Ally Bank's GMAC Mortgage and PNC Financial have all suspended foreclosures in states that require a judge’s order.  Bank of America has suspended all foreclosures in all 50 states.  State attorney generals across the nation have joined an investigation into these foreclosure practices.  In Congress, Nancy Pelosi and Christopher Dodd, have called for a federal investigation, and U.S. Attorney General Eric Holder said he is looking into the matter. 

Potentially millions of foreclosures across the United States are subject to challenge.  In some cases courts are denying the lender’s foreclosure suit because it cannot produce clear title.  A recent lawsuit in federal court in Louisville alleges that banks participating in MERS (a mortgage document clearing house) conspired to produce false promissory notes, affidavits, and mortgage assignments to be used in mortgage foreclosures.  Similar class actions have been filed against MERS in Florida and New York.

As a result of this mortgage document fiasco, one title insurance company, Old Republic National Title Insurance, has announced that it will no longer write new insurance policies for homes that have been foreclosed on by JPMorgan Chase and GMAC Mortgage.  Homeowners who have purchased foreclosed homes may not have clear title and may face difficulty in selling their homes in the future.

If you are facing foreclosure, consult with an experienced bankruptcy attorney and discuss your options.  There are many options for homeowners who are unable to make their mortgage payments.  Your bankruptcy attorney can discuss your options and protect your legal rights.

Fears & Nachawati Law Offices

4925 Greenville Ave Suite 715, Office 1, Dallas, TX 75206 (214) 890-0711  Google Reviews ‎  |  fnlawfirm.com  |  Directions

Every day is a new opportunity to make good financial decisions.  If your income has been significantly reduced, one decision that may help is to ensure that your bank does not charge you overdraft fees on your debit card purchases.

A new federal banking regulation that took effect July 1, 2010 requires banks to obtain a customer’s consent before charging overdraft fees for debit card purchases whenever there are not sufficient funds to cover those purchases.  Consumers who do not “opt-in” may have their debit cards declined at the cash register. 

When an individual suddenly has a reduction of income, it is often difficult to keep track of monthly finances.  This could result in bank overdrafts.  A $5.00 burger and soda could wind up costing $35 or $40 after bank fees are assessed.  In some cases overdraft fees can quickly multiply to hundreds of dollars.  Additionally, some banks charge negative balance fees that may be assessed on a daily basis.  A prolonged negative balance could result in closure of the account and a consumer report to Chex Systems, making it more difficult to open another bank account.

Bank fees are avoidable debts that can only complicate a bankruptcy case.  Many debtors in bankruptcy want to maintain a good relationship with their local bank, and consequently will pay the bank debt.  In cases where the debt is not paid, a new bank may not agree to open a new account for you until the debt to your former bank is paid – regardless of whether that debt was discharged in bankruptcy.

When money is extremely tight, consider using cash to pay for ordinary purchases like lunch, groceries, or gas.  Cash may be less convenient than using your debit card, but it is easier to keep track of your money and see how it is being spent.

If you are experiencing financial difficulties due to a sudden reduction of income, consider opting out of overdraft fees from your bank.  A small inconvenience at the cash register could save you from a considerable headache later.  Your bankruptcy attorney can advise you on additional ways to avoid further difficulties by making to adjustments to your finances.  Consult with an experienced bankruptcy attorney and learn how the federal bankruptcy laws can help you.

Fears & Nachawati Law Offices

4925 Greenville Ave Suite 715, Office 1, Dallas, TX 75206 (214) 890-0711  Google Reviews ‎  |  fnlawfirm.com  |  Directions

The Bankruptcy Code authorizes six different types of bankruptcies, but only four can be used by individuals.  Each type of individual bankruptcy case is known by the chapter that defines it in the Bankruptcy Code: Chapter 7, Chapter 11, Chapter 12, and Chapter 13.

A Chapter 7 case is the most common type of individual bankruptcy case.  Chapter 7 is available to individuals, to married couples, and to a spouse who files separately.  Chapter 7 is an erase-your-debts-start-fresh bankruptcy case.  It is formally known as a "liquidation" proceeding, because (in theory) everything the debtor owns is taken and sold to pay creditors.  However, it is not very practical to take everything a person owns, and many state and federal laws protect the debtor's property to the extent that only about one case in twenty pays anything to creditors in a Chapter 7.  An average Chapter 7 case will take four to six months to complete.

A Chapter 11 case is called a "reorganization" proceeding, and is commonly used by corporations.  Individuals file Chapter 11 because their debts exceed the limits for Chapter 13 bankruptcy.  The bankruptcy trustee cannot take property from a Chapter 11 debtor.  The debtor proposes a plan to repay debts, creditors vote whether to accept the plan, and ultimately the bankruptcy court orders a reorganization plan which binds all parties to the terms of the plan.

A Chapter 12 bankruptcy case is only available to family farmers who wish to reorganize their finances.  Many provisions in Chapter 12 are similar to a Chapter 13.

In a Chapter 13 case the debtor pays what he can afford each month under a court-ordered repayment plan.  Creditors are grouped together in debt priorities and paid according to the availability of monthly income.  Creditors are paid between zero and 100% over three to five years.  Chapter 13 is only available for individuals who have a regular income (Chapter 13 is also called a "Wage Earner's Plan"), unsecured debt of less than $336,900, and secured debt of less than $1,010,650.  The bankruptcy trustee cannot take property from the Chapter 13 debtor.  Chapter 13 provides many advantages to Chapter 7, including the opportunity to reduce monthly vehicle payments and catch-up a delinquent mortgage.

The Bankruptcy Code offers four powerful types of bankruptcy cases to individuals.  If you are struggling with debt, speak to an experienced bankruptcy attorney and discover how the Bankruptcy Code can help you reorganize or eliminate your debt headache.

Fears & Nachawati Law Offices

4925 Greenville Ave Suite 715, Office 1, Dallas, TX 75206 (214) 890-0711  Google Reviews ‎  |  fnlawfirm.com  |  Directions

The decision to file a personal bankruptcy can be emotionally difficult for many individuals.  Sometimes these emotions can make it difficult to accurately assess your financial picture.  If you are facing a financial dilemma, it is a good idea to consult with someone skilled in evaluating your finances and obtain advice.  The answer to a financial problem can vary from reducing spending, to increasing income, to selling assets, and finally to reorganizing or liquidating in bankruptcy. 

Filing bankruptcy should always be your last good option.  Unfortunately, good people will make bad decisions when trying to avoid this last good option.  Bankruptcy attorneys see people regularly who have made bad decisions regarding their finances in the hope of avoiding bankruptcy.  These bad decisions always make matters worse.  Some of these bad decisions include:

* Borrowing from retirement funds

* Borrowing money from a business, family, or friends

* Misappropriating money, kiting checks, or other illegal activities

* Borrowing from payday loan companies, taking cash advances from credit

* Selling assets that may be protected from creditors

It is true that desperate people do desperate things.  When things get desperate, it is time to consult with an experienced bankruptcy attorney and discover how the bankruptcy process can help you and your family.  Bankruptcy is a legal process that is authorized by the Constitution of the United States.  Its laws are drafted by Congress and a federal bankruptcy judge oversees your case along with a trustee appointed by the Department of Justice.

One goal of the bankruptcy process is to return the debtor to financial health by relieving the burdens of overwhelming debt.  The great majority of debtors never file bankruptcy again and rebuild their financial lives by making good decisions after the bankruptcy discharge.  For these people, bankruptcy provides a second chance.

If you need a second chance and a fresh financial start, speak with an experienced bankruptcy attorney and discuss your options.  Make wise decisions about your personal finances.  The bankruptcy laws help over a million families get a new financial beginning each year, and it can help you too!

Fears & Nachawati Law Offices

4925 Greenville Ave Suite 715, Office 1, Dallas, TX 75206 (214) 890-0711  Google Reviews ‎  |  fnlawfirm.com  |  Directions

Chapter 13 of the Bankruptcy Code contains many useful provisions that are not available to Chapter 7 debtors.  One of the most useful is the ability to cram-down an over-secured auto loan to the actual market value of the vehicle, and pay the auto loan over the duration of the Chapter 13 bankruptcy plan.

The Bankruptcy Code recognizes that a lien is only secured to the extent of the value of the property.  If the amount of the lien is more than the value of the property, the debt is separated into two parts: secured and unsecured.  During a Chapter 13, the amount of the loan that exceeds the value of the vehicle can be stripped away.

For instance, if your vehicle is worth $10,000, but the secured auto loan balance is $13,000, the bankruptcy will separate the auto loan into a secured debt of $10,000 and an unsecured debt of $3,000.  The secured portion must be paid in full during the Chapter 13 case, and the unsecured $3,000 amount will be paid along with other unsecured creditors (usually pennies on the dollar, if anything).

Another potential benefit to the Chapter 13 debtor is that the contract terms can be modified during the Chapter 13 repayment period.  In some cases the repayment period can be lengthened or contract interest rate can be lowered by the bankruptcy court.  Changing the contractual terms can make a significant difference in the ability of the debtor to repay the debt.

If you are struggling with debts you cannot pay and own a vehicle that is worth less than you owe, you may be eligible to reduce your principle and your monthly payment on your vehicle loan.  Speak with an experienced bankruptcy attorney and discuss how a Chapter 13 bankruptcy can help you reduce your debt and make your finances work for you and your family.

Since 1967 there have been several studies that rank stress due to a traumatic life event.  The studies agree that divorce causes tremendous stress in a person’s life, and is number two in the rankings for most studies, behind death of a spouse or child.

Since divorce is such a stressful time, it is no wonder that people make mistakes with their finances during a divorce.  Many couples either overlook or ignore the economic realities of their changed financial condition.  In some cases financial mistakes made during the divorce can lead to bankruruptcy.  In other situations bankruptcy is simply inevitable.

One financial mistake divorced couples commonly make is a misunderstanding of the family court’s “assignment” of a joint debt to one of the spouses.  The family court has the authority to order one spouse to pay a particular joint debt.  For instance, husband pays the MasterCard; wife pays the car payment and keeps the car.  The court order may contain a “hold harmless” provision that means that if the obligated spouse does not pay the debt, and the other spouse is harmed, the obligated spouse is responsible to repair the harm (usually this means money damages).  This order is enforceable through the court’s contempt power.

Many people mistake this assignment as an alteration of the contract with the creditor.  The family court’s order does not change the couple’s joint obligation on the debt because the creditor was not a party to the couple’s divorce case.  A joint debt remains legally enforceable against both or either party even after the divorce.  If the obligated spouse does not pay pursuant to the family court’s order or the terms of the contract, the only recourse is to cry foul to the family court judge.  The creditor can pursue any legal action to collect on the debt including reporting the delinquent account to the credit bureaus, filing a lawsuit against both spouses, and repossession or foreclosure as authorized by law.

Many couples can benefit from filing bankruptcy before a divorce is final.  In most circumstances property that is owed by a husband and wife receives better protection from creditors than it receives if owned by a single person.  Some debts that are ordered by a family court cannot be discharged by the bankruptcy court, so it is better to discharge those debts prior to a family court order.  In some cases, if one spouse files bankruptcy and discharges a debt, a family court cannot reassign that debt to the discharged debtor.

Divorce can complicate the legal obligations of a divorcing couple’s finances.  If you and your spouse are considering divorce and have significant debt, speak with an experienced bankruptcy attorney and discuss your options before finalizing your divorce.

When a landlord files a bankruptcy case, both the landlord and the tenant have a great deal of anxiety.  How will the bankruptcy affect the tenancy?  Does the tenant continue to pay rent?  Is the landlord still obligated for repairs?  Fortunately the Bankruptcy Code contains specific provisions for dealing with the rights of both the landlord and the tenant during a bankruptcy. 

The Bankruptcy Code seeks to balance the contractual rights of the tenant against the interest of the bankrupt landlord in discharging overwhelming financial obligations.  Section 365 of the Bankruptcy Code allows a bankrupt landlord to either assume or reject a lease.  In the majority of the cases the landlord accepts the lease and the tenancy continues with the mutual promises and obligations of the lease contract remaining fully enforceable.

If the landlord rejects the lease, then the tenant may treat the lease as terminated and “walk away” without further obligation.  Alternatively, the tenant may choose to stay, however the landlord no longer has any obligation under the lease contract.  The tenant treats the lease as breached and may offset any damages resulting from the breach from rent payments.  If the damages incurred exceed the amount of rents due under the contract, the tenant may be able to submit a proof of claim and participate in the landlord’s bankruptcy as a creditor.

To make matters more complicated, section 363 of the Bankruptcy Code permits a landlord to sell the rental property “free and clear” of any contractual interest, such as a tenant’s lease.  However, the Bankruptcy Code also enables the tenant to ask the bankruptcy court to “prohibit or condition” any sale to protect the tenant’s interest.

Sorting out the legal rights of a landlord and tenant can become highly complex when the landlord files bankruptcy.  If you are a landlord seeking to file bankruptcy, or the tenant of a bankrupt landlord, discuss your case with an experienced bankruptcy attorney.  The federal bankruptcy laws are flexible on this subject and a resolution that is mutually beneficial can be reached.  Make sure your legal interests are protected by retaining qualified counsel.