I said Chapter 13.. husband said Foreclosure

[AboutToBK13]

I believe you but that does surprise me beause educational tuition is an allowable expense on the BK 13 paperwork we are filling out for the lawyer.

Maybe the difference is age of the child and college vs. k-12?

It could also be the state as well?

[ssdsco]

I don't know that paying for a child's education constitutes fraudulent conveyance.

[AboutToBK13]

You may have an issue with a term I've come to hate called “fraudulent conveyances” concerning the support you've provided your daughter. Check with your attorney.

How much do you estimate the deficiency on the 2nd home to be ?

I don't know that paying for a child's education constitutes fraudulent conveyance. If they BK 13, they may not be able to continue those payments, but I don't think it is fraudulent prior.

[ssdsco]

You may have an issue with a term I've come to hate called “fraudulent conveyances” concerning the support you've provided your daughter. Check with your attorney.

How much do you estimate the deficiency on the 2nd home to be ?

[AboutToBK13]

State: Fla

Problem: Cant afford $ 4500./month mortgage on second home total loan amount is $525,000 (2nd mortagage is $70,000 and 3rd mortgage $140,000)

Unsecured CC $50,000.

Our lawyer said we have disposable income of $5,000./month which we have to give every month until $50,000. is paid. We dont have $5,000 a month because of my daughter in college.

My husband dont want to file chapter 13 because we are not allowed to include my daughter's college expenses. He would rather foreclose the house and pay for the deficiency judgement and have control. l

I think Chapter 13 is better. Any advise is appreciated.

Thanks.

Disposable income of $5,000 per month. That is quit a bit of disposable income. You could pay off the debt yourself in 10 months. Your daughter taking school loans for 1 year would sure help things along.

Once your debt is straightend out, you could repay the loans for her.

Just my opinion. Good Luck.

[lrprn]

Our lawyer said we have disposable income of $5,000./month which we have to give every month until $50,000. is paid. We dont have $5,000 a month because of my daughter in college.

Unfortunately as you have discovered when parents file Ch 13, many Ch 13 trustees consider paying for a child's college a luxury, not a necessity.

The advantage of filing Ch 13 over just foreclosure and paying the debt yourselves is that your non-secured creditors will not be able to charge interest or late fees, have to accept the plan, and can't contact you or change the rules after you file. That will not be the case if you don't file bankruptcy.

Also the amount owed now will continue to climb due to interest fees charged unless you can keep up not only with the foreclosure deficiencies but the interest on the current secured AND non-secured debt as well. And of course, this also assumes you don't get into more debt after you start paying things down.

Your best bet is to sit down with 3-4 experienced bankruptcy lawyers in your area who have a great deal of experience filing high-income Ch 13 cases. Most give free or low-cost initial consultations. You'll find out from reliable sources whether filing Ch 13 makes long-term financial sense in your situation or not.

[mat04]

State: Fla

Problem: Cant afford $ 4500./month mortgage on second home total loan amount is $525,000 (2nd mortagage is $70,000 and 3rd mortgage $140,000)

Unsecured CC $50,000.

Our lawyer said we have disposable income of $5,000./month which we have to give every month until $50,000. is paid. We dont have $5,000 a month because of my daughter in college.

My husband dont want to file chapter 13 because we are not allowed to include my daughter's college expenses. He would rather foreclose the house and pay for the deficiency judgement and have control. l

I think Chapter 13 is better. Any advise is appreciated.

Thanks.