Hi Everyone. Seeking feedback and looking to understand my situation/options.
Entered into Chapter 13 in fall of 2013. We have 17 months left - good payment history. When we first entered the plan, our combined salaries were approx $140,000. Since that time, our salaries have increased to $210,000. In addition, some of our monthly expenses (e.g. pre-school, car payment) came off the books.
On one hand, this is great and I'm certainly NOT complaining. On the other hand, it seems as if our growth financially is a problem for our current scenario:
We've been in perpetual "rent" mode for housing and found a local home that fits into our budget $475k. Our real estate broker said current BK is not a problem as long as you have solid payment history and if the trustee approves the transaction (per FHA guidelines). Our attorney was "cautiously optimistic" he could make this work but was concerned exposing our new finances might force our plan payments to change.
Given the risk/reward, we figured no problem (even if our current payments approx. $1,400/month doubled, this is something we could absorb). We've since entered into the contract (pending trustee approval) and once the attorney broke down the numbers, he's now telling me that not only will it be a tough sell to the trustee, but that on top of the $23k left on our plan, he envisions we'll also owe approx. $88k on top of this.
I understand the aspect of plan payment amount changing, but this amount means we'd owe approx $5,100 more per month. I will be getting clarification soon, but in meantime wanted to see if this sounds crazy? How did he come up with that figure - especially since he originally said worst case our payments would double?
On a side, note also curious if having a co-signer/borrower for the loan would offset the need for trustee approval? At this point, looking at any and all options to try and make this work.
Thanks for reading and any help!
Entered into Chapter 13 in fall of 2013. We have 17 months left - good payment history. When we first entered the plan, our combined salaries were approx $140,000. Since that time, our salaries have increased to $210,000. In addition, some of our monthly expenses (e.g. pre-school, car payment) came off the books.
On one hand, this is great and I'm certainly NOT complaining. On the other hand, it seems as if our growth financially is a problem for our current scenario:
We've been in perpetual "rent" mode for housing and found a local home that fits into our budget $475k. Our real estate broker said current BK is not a problem as long as you have solid payment history and if the trustee approves the transaction (per FHA guidelines). Our attorney was "cautiously optimistic" he could make this work but was concerned exposing our new finances might force our plan payments to change.
Given the risk/reward, we figured no problem (even if our current payments approx. $1,400/month doubled, this is something we could absorb). We've since entered into the contract (pending trustee approval) and once the attorney broke down the numbers, he's now telling me that not only will it be a tough sell to the trustee, but that on top of the $23k left on our plan, he envisions we'll also owe approx. $88k on top of this.
I understand the aspect of plan payment amount changing, but this amount means we'd owe approx $5,100 more per month. I will be getting clarification soon, but in meantime wanted to see if this sounds crazy? How did he come up with that figure - especially since he originally said worst case our payments would double?
On a side, note also curious if having a co-signer/borrower for the loan would offset the need for trustee approval? At this point, looking at any and all options to try and make this work.
Thanks for reading and any help!
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