while in chapter 13

[CAB_44]

If your mortgage company has an explicit and specifically defined grade period, I wouldn't worry about...so long as you get your payment in during the Grace period, there should be no adverse consequences.

I haven't heard of a Mortgage Company getting rid of the Grace Period for a person just because they filed BK, at least, not without giving the person notice. However, I have heard of (GMAC is notorious for this) mortgage companies who stop sending Monthly Statements when a person files BK.

Yes, well sometimes I get an overdue notice AFTER they have already received and CASHED my check many days before....cracks me up....but it is specific about the 15th of the month... I have never been that late...not even close, but it has been a few days or so after the first, as I said~ depends on which 6 months of the year we are talkin about~
but reading your script about priority payments, kind of got me scared...I do make it a priority~ but paying my MBNA was as much as my mortgage, and the MBNA HAD to be on a certain date, or they would raise my rate.....now, I can make my mortgage FIRST, so it shouldn't be a problem~hard to say since we haven't filed yet....I was just thinking that maybe I might have trouble with them when I do file~
The attorney called today, and looks like we won't file now until late Dec.

Sorry to get off of the thread subject a bit~ I was just reading what advice you had posted, and I had to ask~ Thanks!!!!
CAB

[HHM]

Creditor priorities aren't really a problem for you, they are a problem for the creditors. For example, if you have 3 credits cars (1) MBNA, (2) CHASE, (3) WELLS FARGO, and you owe each one $6000
If you pay off your MBNA within a month or two before you file BK for some idiot reason like (I wanted to keep one credit card)...the Trustee is likely to demand that MBNA pay that money to the Trustee; if they don't, then the Trustee may sue MBNA in what is called an Avoidance Action to get that money.

Note, giving priority is only an issue for "similarly situated creditors". I.e you cannot give preference to one credit card at the expense of another credit card. You ARE allowed, for example, to prefer secured creditors over unsecured credit cards, i.e. you are NOT giving an undue priority by making your car payment at the expense of making a credit card payment.

[Grace]

Why would you always need to pay the mortgage late depending on when you get paid? Don't you have enough in checking to cover that little bit at the very least long enough to get ahead of the curve? What would happen if there was a delay in getting paid? I always make sure to keep at least a month's worth of expenses in my checking account just in case. Not to mention a general savings for emergencies. I just wouldn't think a mortgage is something you'd want to be even a day late on.

[lrprn]

Why would you always need to pay the mortgage late depending on when you get paid? Don't you have enough in checking to cover that little bit at the very least long enough to get ahead of the curve? What would happen if there was a delay in getting paid? I always make sure to keep at least a month's worth of expenses in my checking account just in case. Not to mention a general savings for emergencies. I just wouldn't think a mortgage is something you'd want to be even a day late on.

Allow me to provide an example:

Ch 13 filer has two mortgages on house (not unusual in bk). First mortgage payment is due on the 1st of the month, the second mortgage payment is due on the 15th of the month. The filer is paid every other week on Friday. That means that depending on where the Friday falls on the calendar in relation to the 1st or the 15th and what unexpected costs happen during the weeks between paychecks, it's possible to not have a paycheck deposited in time and available to pay one of the mortgages by its due date. Since Ch 13 pushes out ALL your disposable income to your creditors month after month for 3-5 years, you are literally living paycheck to paycheck. There isn't any "general savings for emergencies" big enough when you start Ch 13 to cover a typical mortgage payment until you have a chance to scrimp and save for months and months, if ever.

I know this to be a fact because this is what we go through every single month juggling things to make sure we can make both our mortgage payments AND our trustee's payment before each one's due date. It isn't as easy as it sounds, believe me!

[Grace]

I can see that happening to someone in a Chapter 13. Still, don't attorneys pad expenses enough that you could save just like $20 or even $50 a month? I just can't imagine having absolutely nothing at all in the bank. Payroll departments aren't perfect.

[aa06a47]

I can see that happening to someone in a Chapter 13. Still, don't attorneys pad expenses enough that you could save just like $20 or even $50 a month? I just can't imagine having absolutely nothing at all in the bank. Payroll departments aren't perfect.

It is tough, but seems like when you get a few bucks saved, a few more expenses comes in that you need to take that savings away. Chapter 13 is about some serious belt tightening. I've had a couple of bad months financially speaking and the little I was able to save is gone. Time to start saving all over again.

[SinkingFast]

I can see that happening to someone in a Chapter 13. Still, don't attorneys pad expenses enough that you could save just like $20 or even $50 a month? I just can't imagine having absolutely nothing at all in the bank. Payroll departments aren't perfect.

This comment shows that you really know nothing about BK. The life experiences of the people here. What we have gone thru or are going thru.

A filer's attny may try and pad their expenses only to have the Trustee take it away.

People here have had their monthly pet expenses denied and rolled into their Ch 13 plan payments. You wanna keep your cat, you gotta pull the cat food money from your grocery budget.

Trustees have said, "Basic cable is good enough." and taken the additional money for the Ch 13 plan payment. You wanna keep the premium package, you gotta pull the additional monies from your entertainment budget.

You tear up a tire on your car and your auto expenses are exhausted for the month, you gotta pull tire money from somewhere else in the budget.

Have a death in the family that requires a trip to go for the funeral. IF your car is in decent shape, where's the extra gas money come from??!!

Lots of people literally live pay check to pay check with no buffer at all.

[CAB_44]

This comment shows that you really know nothing about BK. The life experiences of the people here. What we have gone thru or are going thru.

Lots of people literally live pay check to pay check with no buffer at all.

AMEN SF~
You are absolutely 100% correct in this~
Grace~ you do NOT have any idea what BK means or is~ may I make a suggestion~ That would be~
a better forum for you Grace would be MSN money~forums
There are MANY others ...just like you .....there and that is where you might best fit in~ cheers!!!!!!!!!

[cso5@]

yes.

AMEN SF~
You are absolutely 100% correct in this~
Grace~ you do NOT have any idea what BK means or is~ may I make a suggestion~ That would be~
a better forum for you Grace would be MSN money~forums
There are MANY others ...just like you .....there and that is where you might best fit in~ cheers!!!!!!!!!

no kidding! She was all harsh about the kid who had his ATV repo'd, she was harsh about the mortgage thing -- this is a forum where people come for SUPPORT and advice about the financial situations we are in, for a variety of reasons. Kind of tough to hear, "um, what's the problem? just take the money out of the bank! Of course you have a savings account, right? Who in their right mind wouldn't have a SAVINGS ACCOUNT?"

Maybe MSN money, good idea, or Dave Ramsey or something.

[CAB_44]

no kidding! She was all harsh about the kid who had his ATV repo'd, she was harsh about the mortgage thing -- this is a forum where people come for SUPPORT and advice about the financial situations we are in, for a variety of reasons. Kind of tough to hear, "um, what's the problem? just take the money out of the bank! Of course you have a savings account, right? Who in their right mind wouldn't have a SAVINGS ACCOUNT?"

Maybe MSN money, good idea, or Dave Ramsey or something.

EXACTLY cso5~
the ATV repo thing was about my kiddo~
I did enter a question to HHM about mortgage.....
and YES this is a SUPPORT GROUP~ whom I, cso5 and all the others here, with the exception of only a few....love and have consider a blessing!!!
By the way...wonder if Ms. Grace knows Davy Ramsey declared BK.....hmmmm......~

[HHM]

I have two minds on this issue...yes, this is a website for support and advice...the support comes form knowing that most of the people on this site have been where you are and can empathize with you and share their experiences...however, sometimes the "advice" is not what you are going to want to hear, and sometimes that is necessary. I, personally, will not pull punches when I think someone is making a wrong move or doing, or has done, something that is just plane dumb...a reality check is a very important tool. I don't judge people, but I will, on occasion, judge their thought process and their decision making. But I also try to provide some tools and advice to help them avoid making a similarly bad choice in the future.

My biggest pet-peeve is people on this site is people not getting their priorities straight, i.e. persons who can't even pay their monthly bills worrying about their credit rating etc.

Although I have been absent from this site for the last 10 months because I have been traveling overseas, I have been here since almost the beginning, in fact, I believe I was the first person asked to be a moderator who was not part of the websites founding team (or at least the first moderator that stuck around).

I think Grace was a little off base on her specific comments, but her general point about getting perpared for the unexpected is nonetheless, valid.

[CAB_44]

I have two minds on this issue...yes, this is a website for support and advice...the support comes form knowing that most of the people on this site have been where you are and can empathize with you and share their experiences...however, sometimes the "advice" is not what you are going to want to hear, and sometimes that is necessary. I, personally, will not pull punches when I think someone is making a wrong move or doing, or has done, something that is just plane dumb...a reality check is a very important tool. I don't judge people, but I will, on occasion, judge their thought process and their decision making. But I also try to provide some tools and advice to help them avoid making a similarly bad choice in the future.

My biggest pet-peeve is people on this site not getting their priorities straight, i.e. persons who can't even pay their monthly bills worrying about their credit rating etc.

I think Grace was a little off base on her specific comments, but her general point about getting perpared for the unexpected is nonetheless, valid.

You make very good points HHM~
I personally do not have a problem with anyone giving advice on truth/or the reality of it~
I do however, have a problem when someone (a new contributor to this forum) is patronizing and sarcastic about what you should and should not do, especially when they themselves have not yet walked the mile and had the experience... that is boasting and prodding arrogance.
Why would anyone want to be on a forum where you have no intentions on helping someone with advice, but only to badger them with insulting remarks/questions.
I believe (if you look on several posts lately) that this is what is going on. There is nothing but sarcasism in the persons comments, they are hardly supportive and very condiscending~
I do appreciate all opinions, however~ not when they are conjoined with arrogance~ I am not a doormat, no one is or should be treated as such.
Most of us here know "WHY" we are here...we've made terrible finacial mistakes, but I hardly think this is the place to allow people to make sarcastic comments on how "Bad" we've made our beds..believe me...we know how bad it is~ we are living it. To have someone come in here and rub our noses in it~ what sick mind gets satisfaction over that, I'll NEVER know~ that's just wrong....
I look at it this way~
What goes around.....comes around~ I have lived long enough to see that one!
I just truly appreciate the advice, opinions, and support.....that's what this is...people helping other people, not badgering you over your money maladys.
I apologize for getting off of the subject of this very thread~ originally, I asked a basic question for which you answered and I am grateful for it! However, as I said, the patronizing was uncalled for by another guest....
Thanks for your suggestions HHM~ I do appreciate it!