Chapter 13 and Mortgage Payments

[Phoebers]

Okay, hubby has finally decided to file Chapter 13 on his own. I don't think he would qualify for a Chapter 7 and we don't want to lose the house. We have been current on the mortgage but I do have a couple of questions. Do they take into account that the mortgage payments are supposed to go up over the next couple of years? Do they include that in the payment plan? Also, there is only one more secured debt which is the 2nd mortgage. We've been having problems with them since he entered into debt consolidation. They are trying to sue him but want him to sign a consent judgement. He does have some unsecured debt as well. Some of that has been paid down through the debt consolidation plan. It just seems we need to focus on the secured debtors but we are worried how much the unsecured will get during the payment plan. We've heard good stories and bad. Any suggestions?

[lrprn]

Do they take into account that the mortgage payments are supposed to go up over the next couple of years? Do they include that in the payment plan?

When your husband files, the current payment for your home will be what is entered. If you have an adjustable rate mortgage, then as the mortgage payment increases, his Ch 13 lawyer can file an amended plan to accommodate the increase.

Also, there is only one more secured debt which is the 2nd mortgage. We've been having problems with them since he entered into debt consolidation. They are trying to sue him but want him to sign a consent judgement. He does have some unsecured debt as well. Some of that has been paid down through the debt consolidation plan.

Is the 2nd mortgage behind? What is the basis for the 2nd mortgage's suit against your husband? What state do you live in? Are the first and second mortgages in both of your names or just his? This is important to know so we can help answer your questions better.

It just seems we need to focus on the secured debtors but we are worried how much the unsecured will get during the payment plan. We've heard good stories and bad. Any suggestions?

Don't worry about the unsecured payback %. Out of his monthly payment to the trustee, first the trustee and his lawyer are paid, then his secureds, then his priorities (if any), and last whatever is left over goes to his non-secureds. Often some of his non-secured creditors will decide not to even file a claim - only about half of ours did. Whatever payback % to non-secureds is showing when he files is likely to be different after it's known how many of his creditors actually file to be paid back through your plan. This is the least of your worries.