I just made my 30th payment of a 60-month plan. About $41,000 of what I have left to pay is student loans. The other $20000 is unsecured debt (credit cards, car loans, etc). I am considering voluntarily dismissing my case to look into buying a house. We are in a 100% plan and my wife and I are making about $15,000 more a year than when we filed. I know we should be able to set up monthly payments again for the student loans. With the money we now make, plus some extra that my mom has offered to give us, we feel like we may in a position to go back on our own. Just wanted to see if anyone else has been in this position and could give us some advice on what to expect from creditors and what kind of a chance do we actually have of getting financed within a year.
-
-
You can buy a house while in Ch 13 without having your plan dismissed.
All you have to do is petition the Trustee for approval.
There might be a problem with that due to the pay differences between now and when you filed. Technically, you're supposed to inform the Trustee of significant changes in income. Some Trustees are diligent and ask for copies of your income taxes every year. Others are lax and could care less once your plan is confirmed.
Another route you could take is save up the money and buy out early. You can ask the Trustee's office for an early pay-out figure to see where you are.
If you have your plan dismissed, the Creditors will be all over you. Right now you are under the protection of the Automatic Stay. When the Ch 13 is gone, you loose that protection. Also, all the penalties, interest, and fees that would have accumulated in the last 30 months could be tacked back onto what you owe as well.Filed Ch 7 - 09/06
Discharged - 12/2006
Officially Declared No Asset - 03/2007
Closed - 04/2007
I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.
Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen... -
I did check into buying a house while staying in the plan and I just don't think its something we would realistically be able to handle. I know the creditors will come after me, but it seems like to me, and I could be wrong, that if I contact them first and ask if I can make a settlement, some would be willing to accept a big upfront cash payment. If I have $3500 a month or so available to pay off debt, plus about $10,000 that my mom is willing to give me,it seems like I could reasonably handle that $20,000 or so unsecured debt that I have left. If I have no chance of being financed at any reasonable rate (7to8%), then it wouldn't seem to be worth it to dismiss.Comment
-
Credit wise, it would actually look better to prospective Lenders if you complete your plan.
That's why I suggested get a pay-off figure from the Trustee's office. See if you'd have the resources to buy out early.Filed Ch 7 - 09/06
Discharged - 12/2006
Officially Declared No Asset - 03/2007
Closed - 04/2007
I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.
Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...Comment
-
Originally posted by esmith1515 View Post
Be careful on dismissing your case. A dismissed case takes away the protection of the automatic stay. Creditors can and probably would come after you for late fee's, interest, etc. Don't think the balance left to pay the trustee is the balance you would have once you get out from under the umbrella.
My advice, wait until you hit the 36 month and try and pay it off. The housing market is cooling off some, you might be able to get a better deal in 6 months.Chapter 13 Filed 4/03/06 :blink: 341 Meeting Complete 5/11/06 :yes2:
Plan Confirmation 6/16/06 :yahoo:
Discharged: 1/5/2010 :yahoo::yahoo::yahoo::yahoo:Comment
-
I wish there was a way to buy out of the plan except for the student loans. I guess I should have not included the student loans in the plan. I am meeting with a loan officer today to show him my situation and see what he says. If he thinks our chances of being financed within a year are slim, then we probably will just stay in our plan. These first 30 months have seemed to go by pretty quick. Hopefully the next 30 months would go by even faster.Comment
-
Don't be discourage esmith. you will probably be able to get a loan after chapter 13, if you try too soon, your interest rate will be kinda high.Chapter 13 Filed 4/03/06 :blink: 341 Meeting Complete 5/11/06 :yes2:
Plan Confirmation 6/16/06 :yahoo:
Discharged: 1/5/2010 :yahoo::yahoo::yahoo::yahoo:Comment
-
FHA I do believe has a program where you could purchase with trustee approval IF you have NOT BEEN LATE on ANY of your chapter 13 payments for over 12 months. You might want to check that out. Plus that would keep your interest low and while still in a chapter 13, your creditors at bay
good luck!Comment
Comment