Met With Lawyer :(

[bmitchell31]

She did the math several different ways and said I was definitely a CH13. One problem I had was that I'm current on all my bills both the secured and unsecured. I have no way of getting an accurate picture of possible payback until I default on loans. She advised me to let the bank foreclose on my secured property, let them go through the sale, and when they (the bank) file against me for the deficiency I should then file for bankruptcy.

So, looks like this is what I will do. This will push back the bankruptcy to at least end of the year. I will take the money not being paid on this debt and sock it away. Why? If I was to stop paying one to pay another then it looks like favoritism. Of course I will be very careful in every decision I make form here on out.

[woeisme]

No reason for the because what this means is you have plenty of time to plan your Ch 13 correctly so that you have the best chance of completing it successfully. Make sure not to take on any overtime or anything that will push your 6 month income look-back higher, make sure you start a history of spending on things that are allowed expenses (medical care, dental, vision, etc if you don't already have it, term life insurance policy, newer car if you need one, making sure monthly payments are less than allowed, etc.) I'd especially work on getting the car now while you are on time with all the bills and credit hasn't tanked yet. Maybe even something brand new with all the incentives and 0% financing options out there if you qualify. You have 6+ months to put yourself in an advantageous position prior to filing, as long as you use it well, shouldn't see this an a bad thing, but as a great thing! I know everyone just wants to get it all over with... but CH 13 is a long haul, so better to get ready for the trip than to do it in a rush. Good luck!

[TooMuchCredit]

She did the math several different ways and said I was definitely a CH13. One problem I had was that I'm current on all my bills both the secured and unsecured. I have no way of getting an accurate picture of possible payback until I default on loans. She advised me to let the bank foreclose on my secured property, let them go through the sale, and when they (the bank) file against me for the deficiency I should then file for bankruptcy.

So, looks like this is what I will do. This will push back the bankruptcy to at least end of the year. I will take the money not being paid on this debt and sock it away. Why? If I was to stop paying one to pay another then it looks like favoritism. Of course I will be very careful in every decision I make form here on out.

You don't have to be delinquent or default to file. Not sure I understand why she told you that. However, if you are able to pay your bills now, not sure what benefit Ch. 13 would be.

If you are underwater on your house and are wanting to get out of it, you can surrender a house in Ch. 13. If you are able to be current on your bills now, you might be put into a 100% plan, but there's no interest on the balances and you'd be paid off in 3 to 5 years.

[bmitchell31]

Not sure I understand why she told you that. However, if you are able to pay your bills now, not sure what benefit Ch. 13 would be.

I have two loans that will adjust soon and they will double in payments, thats what will put me in bankruptcy.

Being current on bills does not mean I can afford to pay,and yes I would be in a 100% pay back for five years.

You don't have to be delinquent or default to file

True, but I have no idea how much unsecured debt I owe, untill the land I have is sold by the bank.

[walkthaplank]

You don't have to be delinquent or default to file

True, but I have no idea how much unsecured debt I owe, untill the land I have is sold by the bank.

It is irrelevant. You BK it as secured debt being surrendered. It doesn't matter what the deficiency is, that is the bank's problem, the amount of the debt will be discharged at the end of your plan. One thing I do know, if you start defaulting on your debt, they will start racking up interest and late fees. You being in a 100% plan WILL be paying every one of those late fees and interest.

You should talk to some more lawyers, I think this one is screwy...

[TooMuchCredit]

Not sure I understand why she told you that. However, if you are able to pay your bills now, not sure what benefit Ch. 13 would be.

I have two loans that will adjust soon and they will double in payments, thats what will put me in bankruptcy.

Being current on bills does not mean I can afford to pay,and yes I would be in a 100% pay back for five years.

You don't have to be delinquent or default to file

True, but I have no idea how much unsecured debt I owe, untill the land I have is sold by the bank.

If you have 2 mortgages, if your house is worth less than you owe on the 1st mortgage, you may also be able to strip off the second (it becomes unsecured like a credit card).

[f86sabjf]

yes yes we just stripped our second in our filing today. If you can get the house appraised, our house was valued 27,000 under the loan value of the first. This allowed us to get rid of the $69,000 second. We were not behind when we filed, I had just lost my job 3wks ago and it was coming so we headed it off at the pass. There was no way we could keep up. Good luck to you .