Got our repayment amount

[doglover]

Attny told us today that we will be paying back $ 850.00 for 5 years. This includes the last 4 months of our missed mortgage payments both car payments (they will be good for another 5 years so I'm not worried about that), our furniture and another small secured loan. Not sure what percent we are paying back our unsecured creditors, we will see all the details when we go in and sign on the actual "filing date". I'm happy though I feel there is light at the end of the tunnel now. Thanks again for everyones help. I know it's not even close to be being finished but since I know at least a repayment amount now, I feel I'm at least taking steps forward.

How come some people have their regular monthly house payments included in the Ch. 13 repayment? Why isn't ours? We pay the trustee and then our utilities and mortgage payment will be on us to take care of.

[lrprn]

Attny told us today that we will be paying back $ 850.00 for 5 years. ... I feel there is light at the end of the tunnel now.

Great that you are feeling good about what you found out, DL!

How come some people have their regular monthly house payments included in the Ch. 13 repayment? Why isn't ours?

Because your smart lawyer is saving you many dollars over your 5 year plan. If your trustee makes your regular mortgage payments, then you would be paying your trustee his 7-11% of your mortgage payment every month just to mail the check - a total waste of usable cash that you will need in your Ch 13.

[rrockinggramma]

I think it is personal preference. There are pros and cons to both sides. On one hand, you make your payment to the trustee, the mortage is paid but on the other hand, you making your own payment keeps you in control of when it gets paid and it will create a payment history (albeit perhaps not showing on the credit report) but definitely a payment history since filing the chapter 13 that could help you qualify for another mortgage down the long road ahead.

[MOMof3]

In our district the trustee wont approve plans with mortgage arrears without including the payment within the plan. Our lawyer tried, but didn't want to draw too much attention to our plan by fighting that issue. I'm just happy it gets paid every month. It became too easy for us to neglect that "big" payment in lieu of paying other things--which is why we got 3 months behind. Now that it is all direct from my paycheck, it is the whole out of sight--out of mind thing. I think it's good for us right now anyway as we adjust to a strictly budgeted lifestyle.

[spell]

Many CH13s where the budget is really tight are like watching ping pong if the mortgage is paid outside of the plan.

First you get behind on the TT and they call a motion to dismiss.
So you stop paying your mortgage to get caught up with the TT.
As soon as the TT is current, your mortgage has requested a Motion to Lift Stay.
So you stop paying the trustee to get caught up with the mortgage.

Lather

Rinse

Repeat