Please Help! My son has a lot of medical problems so we had to file chapter 13. We had taken out a second mortgage on our home to consolidate some of our bills. It contained a 99 Dodge Durango. Now the bank that we had it through is not wanting to let us out of that bill. Does anyone know if they can take our house and make us still pay for the truck? Thanks so much
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I don't follow. Why would you be getting out of the 2nd mortgage?? Are your plan payments too small to pay all your secured debt?? Is that the issue.
I think you'll need to provide more details.
My sympathies on owning a 99 Durango. That's the bomb we had so much trouble with. Thankfully, we took out the 100,000 mile bumper to bumper deluxe extended warranty on that one. It certainly paid for itself!!Filed Ch 7 - 09/06
Discharged - 12/2006
Officially Declared No Asset - 03/2007
Closed - 04/2007
I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.
Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen... -
Give us more details. I do not see how they can not let you out of a bill for BK. That is the purpose of BK--to get rid of all debt. We need some more information.Comment
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This is Ch 13, Debt. If the mortgages can't be brought current in the payment plan, and the 2nd mortgage lender won't agree to bow out or take a lesser amount, then BK could force sale of the house to pay the creditors. The primary Lender on the house would be first in line, after Priority debts. Then the 2nd mortgage lender would get paid.Originally posted by debtisbad
It kinda sounds like they owe more for the 2nd mortgage than they can afford to pay. But that's a guess at this point. Until we get more info.Filed Ch 7 - 09/06
Discharged - 12/2006
Officially Declared No Asset - 03/2007
Closed - 04/2007
I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.
Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...Comment
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Let me undertand this - the 2nd mortgage includes a truck you purchased. Did you use this as collateral? Or buy it out of the money you got in the 2nd mortgage loan?
If its collateral, yes you will have to pay for the truck if your keeping it...... they have a lien against it on the 2nd mortgage. Also they can ask you to surrender the truck....Minny
"It's amazing the paths that our feet sometimes follow in life".
My suggestions are from "personal experience" and research only. Do not consider this as legal advice. Each bankruptcy case is different.Comment
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The way I read it, Minny, the 2nd on the house is a debt consolidation loan. They threw the car payment in with all the other debt they wanted to consolidate down to "One Low Monthly Payment"! Sound like a commercial??!!
If that's the case, the line of credit or the loan is registered against the house, on the Deed.Filed Ch 7 - 09/06
Discharged - 12/2006
Officially Declared No Asset - 03/2007
Closed - 04/2007
I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.
Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...Comment
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We have always been current on our house mortgage but we took out the second mortgage to consolidate our medical bills and our Durango. We had so many medical bills that we could not pay them so we had no choice. We kept the house out of the bankruptcy but the Durango was still a second mortgage. They took the Durango but still made us pay about 20,000 to the bankruptcy. Can we sell our house with the bank still having a second mortgage on the house? Will they make us use all our profit toward the bankruptcy? We only owe about 8,000 and will pay it off early in Feb 2008 due to a bonus my husband will be receiving but I just don't know if my son can wait that long. Thanks for your replies.Comment
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Who took the Durango...the bank or the trustee.
Chaffin, I am sure you understand what you are saying, but we are not you and I am having a hard time figuring out exactly what you did. It would be an odd transaction indeed for a lender to give you a 2nd mortgage ON YOUR HOUSE, having the proceeds of that mortgage pay off the Durango, and ALSO keep a security interest in that Durango.
Who is asking for $20,000 the trustee????. If it is the trustee, what is the trustee's reasoning.
Did you do all this before or after you filed chapter 13...are you still in the chapter 13 and making payments?Comment
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I bought the house and truck before the bankruptcy. The amount I owed in bankruptcy at the beginning on the second mortgage was 20,000. It is now down to about 10,000. I am now paying back around 4,000 unsecured to first volunteer bank and about 6,000 secured to them. I am assuming they divided it up as secured for the truck and unsecured for the medical bills. I am paying 24% interest on the 6000 and 0% interest on the 4,000. Will they let me sell the house and not take the profit because they have the truck listed as secured?Comment
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