MasConcepts Incorporated

My husband and I have had a big dip in our income due to his back injury, making him unable to work. We have about $12k in credit cards and we owe $30k in back taxes. We also owe $9k for past HOA membership fees. We have a $140K mortgage balance on our home, which is worth about $420K, and both of our cars were bought for cash and paid off. We live in Texas and I can work completely from home for both of my jobs. I’ve been working basically two jobs to get us through all this but we still are drowning, and that tax bill scares me to death. We are stressed and so embarrassed by our situation, but I finally contacted a bankruptcy attorney, thinking about how to keep our heads above water. The lawyer specializes in bankruptcy cases and recommended Chapter 13 for our situation, as it can roll the back taxes, HOA balance, and delinquent credit cards. We are planning to sell our house within the next two years to move to a location that has a much lower tax rate and cost of living (real estate is much cheaper). Our plan it to buy a modest house and pay in cash.

I am scared to pull the trigger, but it seems like a payment plan under Chapter 13 would be the best move for us. Without the huge debt payments, we would able to pay off things faster and lower the stress for us. Can someone tell me about their experience with Chapter 13, and if you have any feedback about our situation or possible plan.

Thank you