% payback question

[boomerkae]

I'm learning more and more by reading here, and trying to drill down my list of questions for my lawyer appointment on Wednesday. We are filing that day.

- we did determine that at this point, we do not qualify for Ch7
- we do not want our house.

I've been seeing things like 0-10% payback on unsecured debt. What is the payback on secured debt? The total value? Thinking about my house - if I own $278K on my first, and it's only worth $250K, do I pay $250K back as part of my plan?

[steveok]

your payback will have a lot of calculations figured in. It is very difficult for anyone to give you even an idea. The variables will be your "allowed" expenses, your income, and total debt. Best to let the attorneys run the calculations...

[momofthree]

No, a mortgage on a primary residence cannot be "crammed down." If you keep the home and the loan has any security in it, then you have to pay the full balance to keep the house. Since you do not want the house, you would only be responsible for the deficiency balance--that is the balance that remains on the loan after the bank has sold the property and applied the proceeds against the balance. The deficiency balance would be included in your plan as unsecured debt and paid at the same rate as your other unsecured creditors.

[boomerkae]

Since you do not want the house, you would only be responsible for the deficiency balance--that is the balance that remains on the loan after the bank has sold the property and applied the proceeds against the balance. The deficiency balance would be included in your plan as unsecured debt and paid at the same rate as your other unsecured creditors.

Wow. Thanks. This is the kind of information I was looking for! After I asked the question, I knew that couldn't be quite right - the bank would get paid twice for the house! How is that amount determined? When the bank sells and my case updated, or based on my BPO and current loan?

[boomerkae]

your payback will have a lot of calculations figured in. It is very difficult for anyone to give you even an idea. The variables will be your "allowed" expenses, your income, and total debt. Best to let the attorneys run the calculations...

Oh I know that no one can give me the amount - was just looking for a little more info on HOW it is derived. I'm not going to try to figure out all that math! That is why I'm paying the attorneys! Thanks for the input!