What are my options if my mortgage is higher than my income?
If your mortgage is higher than your income, you’ve got an obvious, very serious problem with your finances – and that needs to be corrected immediately. And there must have been something that happened in your life that caused that situation – a lost job or something of that nature.
And unless you can undo that and find a job that pays considerably more – because if your mortgage exceeds your income you’re going to need enough income to cover your mortgage plus all your other daily expenses in order to survive financially. And quite often that type of thing might be impossible, so you might want to consider putting your house up for sale. But if it exceeds your income perhaps you don’t have any equity in it, and that would make it very difficult to sell.
If so, you could consider a Chapter 7 bankruptcy that would take away all of your debt including your mortgage debt, and you could find someplace cheaper to live – that’s always an option for you. Chapter 13 – keeping your home through Chapter 13 – would be very difficult for you because you wouldn’t be able to make the payments. You wouldn’t have enough income to make your mortgage payment and still live. So Chapter 7 would be an option that you could consider that would free you from all of the debt and allow you to put what income you have to better use.
More questions? Contact Darrell Castle and Associates’ bankruptcy attorneys: 901-327-2100.