top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

Which way to we turn?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Which way to we turn?

    Our problems began in July 2007 when my husband became unemployed for a year. My main concern was keeping food on the table and paying the mortgage. The mortgage got paid but was always late. Our troubles have just mounted from here. Once you get behind it's so hard to get caught back up with just the income you have. My overtime was also shut down during this time. What we need to do is start over since he is employed again. Here is our deal:

    We have a 1st and 2nd mortgage on our home. This is the type of loan we had to get when we purchased the home.

    We have two vehicles. Both are paid for.

    Our yearly income is about $52,000.

    We passed the means test.

    We currently owe the mortgage on the 1st loan for May 1st. Payment is due for the 2nd loan for April 1st.

    We have a signature loan at our Credit Union for $5,350 ($200.35/month)

    We have an unsecured Loan @ Citifinancial for $10,000 ($179/month)

    Credit cards in the amount of $1600 ($60/month)

    Medical Bills in the amount of $1600 (not paying any of these right now)

    My husband has a probation fine for $2800 (132/month)

    Living Room & Bedroom Furniture only owe about $150

    My sons Braces $2550 ($150/month)

    Owe state income taxes in the amount of $245

    1st Mortgage balance is $69,825 ($630/month)

    2nd Mortgage balance is $23,275. ($235/month)

    We have no savings, no 401K....nothing!

    We live from paycheck to paycheck and but about $100/week on groceries.


    We have to keep our home. We have two kids. One is 6 the other is 13.

    The rate on the 1st mortgage is 9% and the 2nd mortgage is 11.75%. We tried to get a loan mod from our current lender, they lead us on for 6 months and then came back and told us we didnt qualify. We can't get refinanced because we havent been on time with the mortgage for 12 months


    From the above...Do we need to file Chapter 7 or Chapter 13.


    Gone Broke!
    07-21-2009 filed Chapter 13
    05-02-11 CONVERTED TO CHAPTER 7 :

    09-07-11 DISCHARGED !!!!!!

    #2
    First, to get into a Chapter 7, your allowed expenses must (generally) or nearly exceed your income. You didn't say anything about a car.

    What really drives you towards a Chapter 13 is a.) whether you need to catch up on mortgage payments (seems like this will be the case), b.) have "disposable income" over about $100-166/month, or c.)

    The signature loan would be gone (unsecured). The CitiFinancial loan would be done. Credit cards would go away too. Medical bills would probably go away too. The fine is not dischargeable. You probably don't need to work about the furniture (although it is secured, so you can count that payment in your secured payments).

    That rate on your first mortgage is horrible! Do you know how much your home is worth today? What state are you in?

    Can't really tell if you qualify for Chapter 7 or not.
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

    Comment


      #3
      First, to get into a Chapter 7, your allowed expenses must (generally) or nearly exceed your income. You didn't say anything about a car.

      We have two vehicles, both are paid for.

      Do you know how much your home is worth today?

      2 years ago it appraised at $103,000. I forgot to mention that we have had our home on the market for 4 months now.


      What state are you in?

      Georgia

      Another question. If you file chapter 13, do you continue to pay all your debts and pay the trustee your past due payment or does everything go into one payment, including the mortage? Does the interest on your mortgage stay the same?
      Last edited by jade73; 06-13-2009, 06:07 PM.
      07-21-2009 filed Chapter 13
      05-02-11 CONVERTED TO CHAPTER 7 :

      09-07-11 DISCHARGED !!!!!!

      Comment


        #4
        You no longer need to use large letters, as you certainly have our attention now.

        Originally posted by jade73 View Post
        Another question. If you file chapter 13, do you continue to pay all your debts and pay the trustee your past due payment or does everything go into one payment, including the mortage?
        It depends on your District. In many Districts, you can ask to pay your mortgage and other secured debts outside the plan if they are current when you file. Otherwise, almost all Districts require that you pay them in plan (through the Trustee).

        Since your vehicles are both paid for, and you're in the 11th Circuit, you should still be able to claim the ownership allowance, or at least some reasonable amount

        You also may have some equity issues with the vehicles. First, there is only a $3,500 exemption in all vehicles. For any amount over that, you'll need to pay the Trustee (or, in a Chapter 13, pay the unsecured creditors at least that amount over the exemption). You may be able to use an unused homestead exemption too, but I don't know the current value of your home. I don't think you do, as your appraisal was 2 years or more ago and the market has changed.

        It's probabyl time to get some consultations with several lawyers.
        Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
        Status: (Auto) Discharged and Closed! 5/10
        Visit My BKForum Blog: justbroke's Blog

        Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

        Comment


          #5
          Do you have to pay back all the debt that you have or do they take off some of what you owe when you file Chapter 13?

          We have an appointment next Sat to talk with a lawyer
          07-21-2009 filed Chapter 13
          05-02-11 CONVERTED TO CHAPTER 7 :

          09-07-11 DISCHARGED !!!!!!

          Comment


            #6
            are you still paying on your credit cards and unsecured loans?

            What was the reason you were denied a modification?

            Comment


              #7
              Who is your mortgage lender?
              Chapter 7 filed 10/21/2008
              341 - 11/26 went smooth NO ASSET
              Took 115 days after 341 - But Finally DISCHARGED 3/25/09

              Comment


                #8
                Here's a list for GA exemptions if you haven;t seen this already:
                Georgia bankruptcy exemption laws help you keep property in bankruptcy. Learn how the Georgia bankruptcy exemptions can protect your property.

                Comment


                  #9
                  Originally posted by eddiep View Post
                  are you still paying on your credit cards and unsecured loans?

                  What was the reason you were denied a modification?
                  They said we were able to pay the mortgage. Thats all they said.

                  We are still paying the credit union b/c its deducted out of my paycheck. Havent been able to pay citifinancial
                  07-21-2009 filed Chapter 13
                  05-02-11 CONVERTED TO CHAPTER 7 :

                  09-07-11 DISCHARGED !!!!!!

                  Comment


                    #10
                    Originally posted by relief13035 View Post
                    Who is your mortgage lender?
                    Litton Loan
                    07-21-2009 filed Chapter 13
                    05-02-11 CONVERTED TO CHAPTER 7 :

                    09-07-11 DISCHARGED !!!!!!

                    Comment


                      #11
                      Originally posted by Naomi View Post
                      Here's a list for GA exemptions if you haven;t seen this already:
                      http://www.thebankruptcysite.org/exe...s/georgia.html
                      Not really sure how to use this
                      07-21-2009 filed Chapter 13
                      05-02-11 CONVERTED TO CHAPTER 7 :

                      09-07-11 DISCHARGED !!!!!!

                      Comment


                        #12
                        One of my concerns was our vehicles. My car has been paid off for years and is valued around $4000 or so. We owe about $9000 on my husband's truck and he wants to keep it.
                        With GA having an auto exemption of $3500...we should be ok...because I think it's doubled if we file together.

                        Do you have any idea what the value is of your vehicles? I would go to kbb or somewhere online and get an idea. If they aren't worth much, then there should be no problem.

                        Also, just knowing what is exempt (even though I don't completely understand it all either) made me feel better. I didn't know anyhting about bankruptcy and kind of thought you lost everything or were forced to give things up to pay off the credit cards.

                        Comment


                          #13
                          Originally posted by Naomi View Post
                          Do you have any idea what the value is of your vehicles? I would go to kbb or somewhere online and get an idea. If they aren't worth much, then there should be no problem.
                          My grand am is 99 model, 194k miles, kbb says in excellent cond it would be $3780

                          His Chev s-10 is 2000 model, 140k kbb says in exc condition would be $5565

                          Neither are in excellent condition!
                          07-21-2009 filed Chapter 13
                          05-02-11 CONVERTED TO CHAPTER 7 :

                          09-07-11 DISCHARGED !!!!!!

                          Comment


                            #14

                            Comment


                              #15
                              Naomi

                              In your post you mentioned keeping hubby's truck. I just wanted to remind you that you will need to exempt any equity you have in it. so you said you owe $9k, but if it is worth $15k you will need to exempt the $6k equity you have. I know most people do not have any equity if there is a loan, but you never know and you will want to be prepared for that possibility.

                              Comment

                              bottom Ad Widget

                              Collapse
                              Working...
                              X