Lawyer sent letter

[Pumpkin729]

okay confused once again. I called my lawyer about 3 weeks ago asking to pay off early. Received a letter in the mail telling us the amount we owe to the trustee and what creditors have been being paid. The lawyer said in the letter to check to make sure all creditors are listed and being paid. Okay, I did and they are, now what? Nothing about how are we going to pay it or how to pay the buy out. Anyboday have any clue as to what next?

[Flamingo]

Well, the process is a bit different than you are describing. Very briefly, if you you can prove to your attorney that you can buy out of the Plan (i.e., have enough equity in your house to pay off the balance of your plan) and are actually able to buy out, you should have been instructed to contact a broker to see if you would be able to get financing and you would also need an appraisal. When that information is obtained it is turned over to the attorney for review and then presented to the Trustee. If the Trustee approves, the Trustee and the attorney jointly file a Motion to Allow you to Refinance to Buy Out. It takes months (took us six months from start to finish) and is not an overnight process.

Call your attorney and find out what is going on inasmuch as if you are serious about invesetigating buying out, there are specific things you need to do and should be instructed to do. Best of luck to you.

[Pumpkin729]

Need Opinions Plzzzzzzzz

Actually, we wanted to pay with money we saved. Its from pitching dollars here and there from items that were listed in our BK, things like our clothing, entertainment, cigs, under the 10% pay increase, overtime under the 10% guide lines money. I hope we're allowed to save that money as it was listed as our monthly expensives in our BK, we decided to do without (some months) and save to pay off early. Do you think this would be a problem? We're 42 months into the BK, 20 more to go. Will they take that money and say okay continue paying now until you pay 100%? Or should we just go get a home equity home to pay it off?

[MOMof3]

My guess would be that you would be better off using home equity because it will raise fewer flags & questions than saying that you now have cash to pay it off. If it were me, I'd do the home equity route, then once the dust settles---pay down the home loan debt w/the cash that you've saved up.

[Pumpkin729]

My guess would be that you would be better off using home equity because it will raise fewer flags & questions than saying that you now have cash to pay it off. If it were me, I'd do the home equity route, then once the dust settles---pay down the home loan debt w/the cash that you've saved up.

Can we get a home equity loan without refinancing the home? Does the trustee check your bank account when you do a early pay off? What if he does and see the money in our account?

[MOMof3]

I really don't know the answers to your questions, hopefully some other folks will chime in. If you don't have a great interest rate on your home, you might consider just refinancing and lumping the remainder of your 13 into it. I'm not sure about just getting a home equity loan as I am not in the postion to try it. My guess is that if you use the funds to pay off the 13, you can do it & I'm sure if you do a forum search for home equity buyouts, you might find some better info. I don't know if the trustee would check your accounts, you might ask your lawyer that question & also the other questions as well. We are doign a refi on our house (FHA) and we are using a broker our lawyer recommended that knows the ins/outs of the whole BK thing. I would think your lawyer has mortgage people that he/she can recommend.

[Pumpkin729]

Excited here

Just called out credit union to ask about getting a second mortgage loan, they are willing to give us a loan (upon approval of our trustee of course) to pay off our BK. I asked what are the rates and she said 6.5%, I hope all goes well, she sending out the application today. Fingers are crossed!!!!