lat of first payment to trustee

[casdem1]

My son is going to Iraq and needed to borrow some money to move his stuff into storage, so I am short on my first payment to the trustee. $3760 is supposed to be there by August 2, but I am going to be about $1000 short. Has anyone else been in this position? Is there anyway the trustee would let us make this payment on August 15? I can't believe we are starting this whole process already in the hole, but I guess this type of budgeting is why I'm in this mess to begin with!! Any advice would be so so so appreciated....

[BKParalegal]

If you are just paying your first payment then I am assuming your plan hasn't been confirmed yet. Most trustees won't do anything the first month you are in your plan. Typically they wait 45 days of delinquency before they file a Motion to Dismiss. I would send your partial payment in and the balance when you can. If it is within the same month, they are usually ( and I say usually) cool about it.

Good Luck

P.S. $3760 payment? Are you in one of those crappy districts where you have to pay your ongoing mortgage payment thru the plan?

[casdem1]

We are about 5 months behind on a $2250 mortgage payment, which is all included in the plan. Our interest rate is 12% on a 17 year note. Another example of my excellent financial decisions. We have been debating on and off if the house is worth saving, but my husband and I are raising two of our grandkids (ages 5 and 7), and don't have the energy to move - unless of course it becomes absolutely necessary!!

Should I speak to my lawyer? I feel like a kid going to the principle's office.

[BKParalegal]

Yes, I would let your attorney know and he can let the trustee know your status.

good Luck

[fltoo]

Bless ya for taking on the responsibility of the grandkids and for having a son going to Iraq.

Is there any equity in your house? If not, ditch the house. For one payment of 3600. you can hire someone to come pack and move you.

Making that payment at 12% is outrageous and will be stressful for 17 years.
At least the move will be a one time stress thing and then you can relax.

Did you do a chap 13 just to save the house? Maybe without it you can refile a 7.

Give us some info so we can help.

[casdem1]

My husband is a teacher and just started receiving military retirement of $1000 per month. I am a computer operator and work at night. We are about $30,000 over the limit to file a chapter 7 - which I think is CRAZY. Most of the 13 is secured debt including the house, back property taxes, IRS, and one car payment. All the unsecured is getting about 30 percent. My husband had a stroke last October, and though he was able to go back to work in January and finish out the school year, we are not sure how long he will be able to teach - (120 kids a day can be a handful). If he retired we might qualify.

I wish we had done a BK months ago. Now I am feeling like we rushed into this without considering all of our options - like dumping the house.

How hard is it to make changes after you file, but before confirmation? I have already had someone try to garnish me and that would be a VERY BAD thing at my company. My job cannot be at risk.....

This forum is great and I really appreciate the knowledge and information...

[fltoo]

What I would suggest might sound drastic if you haven't read the bulk of the BK forum here. Try to get in as much reading as you can on this forum, it is the most thorough education you will get and make you as knowledgeable as your lawyer! I promise.

IMO, have hub retire and not go back to school in Sept. He probably could use a 6 month rest. You didn't say how much equity is in the house. But, I would foreclose on the house which would get rid of the house payment and even the back property taxes. Foreclosure sounded drastic to me when I started thinking about it, but hey, it is the best thing I did in this whole mess and I was not even upside down.

When a house is foreclosed, the property taxes become the problem of the mortgage company and the new owner, not you.

You have to deal with IRS unless the taxes due are very seasoned.

Find a nice rental house and move. You can even stay in your house probably up to 5-6 months without paying the mortgage until the bank forecloses.

Speak to your lawyer about hub not going back to work and then you can file for a chapter 7 instead and be done in a few months barring no problems. Read the forum on preferential transfers and such for possible problems.

Get a fresh start, get rid of the "STUFF" that is an albatross around your neck and live out your days financially stress free.

Then, when it is over, hub can even go back to teaching if he feels up to it.

Some lawyers push for a chap 13 because there is more money in it for them.
Some just put you in a chap 13 because they don't take the time to look at your situation and make logical decisions for you.

Here on this forum, you will glean enough knowledge to make the decisions for yourself and then tell the lawyer what you want to do. Education is power as I am sure your hub probably tells his students.

I am usually a very short poster getting right to the point and not getting emotionally involved with bankruptcy. But, your post has struck deeply with me. You should in no way have to be in debtor's hell for 5 years and mortgage hell for 17 years due to poor advice.

Bankruptcy is a business decision and like all businesses should have a plan to move forward, not strap you further.

Please read so you don't think I am a raving lunatic giving you bad advice, lol.

Be proactive and get yourself out of this mess.

The children, you and hub will be fine in a new rental home and you will have plenty of money to pay everything cash from now on.

If the car is new and upside down, I would even ditch that. Maybe you can do with one car if hub doesn't go back to work.

Get your fresh start so that the only thing in the world you have to worry about is your son and grandchildren.

[casdem1]

I read your post and took a great big breath of relief. I am overwhelmed by all of this, but I think you just simplified a lot for me. Thank you!

[Flamingo]

Contact the attorney handling the Chapter 13 immediately and advise of the situation. You just can't make a payment less than what it is supposed to be without prior permission to do so. A first payment is due for a specific amount (given to you by your attorney) 30 days after filing and not paying that on time or in full is NOT a good thing. However, I am sure due to the circumstances, as long as you contact your attorney and get permission to do so so the Trustee can be advised of the circumstances, that there should be no problem. As to anything financial involved in the Plan, contact the attorney immediately. Do not guess or assume that it will be OK. Best of luck to you!

[bcvw]

Our son is stationed in Korea and the Army offered storage for his belongings while he is overseas. Perhaps the same would apply to your soldier?

[ccgirl]

My husband is a soldier and when he gets deployed he is able to take an pay advance. Maybe your son could take an advance pay. The payment back is over a period time too.

[AngelinaCatHub]

I only wish to be here for U. I don't have any suggestions as I don't know. My wonderful Mrs. Ms. Cat is here too. We just want to tell you. We love you and appreciate your son's effort to OUR country. Love to U. 'Hub and wife.

[casdem1]

The Air Force will store his belongings, but he had to move them. He also had to pay for his wife to move back to Tenn. from Nevada, because she is staying with her family until he gets back from Iraq. This is his third tour and the orders came up very suddenly, so he didn't have time to prepare. I am going to ask him about an advance. Thanks so much to all of you. The stress of the BK is causing my emotions about his deployment to go all over the place and I really appreciate the kindness and helpful advice.

[arkienurse]

The Air Force will store his belongings, but he had to move them. He also had to pay for his wife to move back to Tenn. from Nevada, because she is staying with her family until he gets back from Iraq. This is his third tour and the orders came up very suddenly, so he didn't have time to prepare. I am going to ask him about an advance. Thanks so much to all of you. The stress of the BK is causing my emotions about his deployment to go all over the place and I really appreciate the kindness and helpful advice.

Please tell your son thank you from me.