I am so confused!

[daisey]

I am most likely thinking wayyy tooo hard but I have so many fuzzy areas of understanding with this mess.

We have 2 homes we plan to file on one it has a first mortgage of 100 thousand and a second of 25 thousand dollars a time share of 8000 dollars these 2 things are the only secured debt we have to file on and 15 thousand in credit cards and about 2500 worth of doctor bills.

My question is what portion of those debts will we have to pay back on. The difficent amount on the house,,,,,,,,,or time share...........or just the credit card balance? My attorney says you only have to pay back your unsecured creditors but is the difficent balance on the house not considered unsecured debt? If so wouldnt that have to be paid back?

The other question is...........if its only the credit card debt no way will it take our full disposable income to pay it back in 5 years how will they work that mess.........we are mostly fileing due to the house we need to dispose of due to issues with rentals.

I appreciate any instructions to this matter.

[HHM]

Didn't you already post this question?

First, for clarification, when you say you have two homes, do you mean 2 homes AND a timeshare, or are you considering your time share a second home (meaning you have your primary residence and a time share).

Secured debt, i.e. your mortgages and time share CANNOT be discharged in BK, you either pay those balances or you lose the secured asset (i.e your home or timeshare).

[daisey]

WE have 2 houses and a time share we want to get rid of one of the houses and it will not sell, 100% ltv on a jacked up apprasial and recent decline of property values in a home owners association in litigation. Whew that was a mouth full. Any way we want to rid our self of the other home and keep this one we are also surrendering a time share - yea another in a long line of mistakes. We are confused about if they will consider the difficent balance on the property we are surrendering as unsecured debt and make us pay back a portion of that. The house we are surrendering is in Indiana. WE have all unsecured debt and the house and time share......It feels like we are doing a chapter 7 but do not qualify for one, but since we are surrendering everything and the rest is unsecured I am confused as to how much I am looking to pay back.

[daisey]

I forgot to add we have a penalty for early pay off on the note for the house we are surredering and a varied rate. We purchased that house in 04 and did a refi in 5/05. Purchased this one we want to keep in 9/06 after we relocated for a new job he was offered in November of 05

[HHM]

I forgot to add we have a penalty for early pay off on the note for the house we are surredering and a varied rate. We purchased that house in 04 and did a refi in 5/05. Purchased this one we want to keep in 9/06 after we relocated for a new job he was offered in November of 05

That doesn't matter...if you declare BK, if there is not enough value in the home to fully satisfy the claims of the mortgage note holders, any remaining balance due is discharged as an unsecured debt in your BK.

[daisey]

I thought you had to pay back your unsecured debt, so would this balance be added to the unsecured credit card debt I have to repay?

[HHM]

If you have enough disposable income to pay your unsecured creditors, then yes.

[daisey]

So if that is the case then we will not know an actual payment plan amount untill after they sell the house and settle that affair...correct????? THat will take forever! There will be no way we can pay back that amount over 5 years. We would have to pay more then we do for the house pmt each month. I know they will sell it for next to nothing I have seen them do it over and over in that area. One very similar 2 doors down sold for 45 thousand dollars that would leave us with nearly 80 thousand in unsecured debt to pay off.

[rrockinggramma]

Are you talking about filing a chapter 13? If that is the case, then any deficiency balance would be considered as unsecured. If you let the house go back in the chapter 13, then it is up to the mortgage holder to file a claim for that unsecured amount. If they do not file one before your deadline, then they are out of luck. Now I may have missed your point here but if you are filing a chapter 13, then just do it. Surrender the stuff you need to get rid of, and keep what you need to keep. Get thee to a lawyer asap.

[daisey]

Yes we are doing a chapter 13, we have decided that we are not going to be able to sell the house and are not cut out to be landlords so we need to get the chapter 13 started and over with. We have a new home, new life there is no point in holding on to the past. I have tried to keep the place for the last year and it has been a headach, its hard because it is the home where I grew up. But since I know we are going to eventually be burned by tenants or they are going to destroy it - they currently are! We just need to cut out loses and get out, we currently pay almost 500 out of pocket on top of rent to maintain the place. Its breaking us.

[SamanthaJones]

Daisy:

If you do not want that rental house, then you do not want to file CH13 so you can keep it. Surrender it, and be done with it. The HOA fee that goes with it will also go away.

[daisey]

THat is why we are doing the chapter 12 samantha, we have to rid ourselves of it and keep the one we have here.