Can anyone answer a few questions?

[j&ct94]

We are looking at filing a chapter 13 due to foreclosure. We have 7 kids and our income is around $38000, will this be a problem?

We filed chapter 7 in 2008 due to credit card and medical debt, so that is not an option, also we really need to keep our house. It is not easy to find a house that will rent to a family our size.

We actually can afford the payment, we got behind because dh started a new job and they had mandatory shut down last year and being new he did not get paid for it. We got behind on a few bills because of his short check and ended up going late on the house and not being able to catch up.

If we do file should I keep current on his 2 credit cards? They are currently up to date. We also have a van payment that is unaffordable with the house. We thought we could pay it off before they filed foreclosure but that didn't happen. Will we be able to give it back or will we have to keep it? Currently it is paid up to date as well.

Also will we have to give up our tax return? We get between 6- 8000 and we use that to buy the kids their glasses/ contacts new shoes and clothes and a big stock up at sam's club.

How do payments work? Will we start making our regular mortgage payment again and then they lump the bills together and figure out a payment? How big of a payment will we be looking at?

Thanks to anyone who can help!

[keepsmiling]

If you are going to file, there isn't any point in paying your cards, and they are going to get closed anyway. Frankly I don't see how you could pay them.... never pay off unsecured debt at the expense of secured. We all learned that the hard way

I hope you will be able to convince an attorney/tt that you can afford a 13 on your income. 38K for 9 people may qualify you for some public benefits. I hope you have at least looked into local programs to help you with some expenses?

I am going to assume that your tax refund is in large part earned income credit? the rules vary on that by state and federal. You may be able to exempt it or the tt may take pity on you and not take it since you really need it to live.

If you share what your other expenses are, we may be able to help more.

Have you spoken to any attorneys? Why not call right now and schedule a couple/three appointments?

[mountanddo]

Holy cow! I filed and am currently in a chapter 13 making just over 37k and my payment is only $100 and she had a hard time doing that in order to show I could fund a C13. The only reason why I had to file C13 was because I had filed C7 in 2005 partly due to me trying to fund a business with personal cash.

I don't see how you are going to be able to fund a C13 but since you've filed C7 and don't qualify for that they may allow you to do that. I just get by, meaning not a lot of extras, on 37k. How in the world do you do it?

[j&ct94]

Credit card payments are $100 total monthly, gas electric and water add up to around $250 monthly and our cable bill is 140 including internet and phone. Cell is $30 a month and our house payment was $829. including taxes and insurance. Health insurance is taken out of my dh's check and we have medicaid to cover copays. We do recieve food stamps at $550 a month and we try to make that work. The van payment is $400 a month but we would give that back if we could file.

After figuring out bills we could afford $250- 300 for payments, but I'm not sure if they will except that. After lawyer fee's the amount past due on the house is 19,000 there was a mistake when they filed the 1st time so they had to refile and we were charged lawyer fee's 2x. Then credit card balance is $2000. Then we have a couple bills that amount to $950.

I have $6- 7,000 in medical debt I'm not sure if my husband can file by himself or not. I'm not on the loan for the house but I must be listed somewhere because I was served papers for the house as well.

We have an appointment Thursday w/ a lawyer and I'll look into other lawyers. So just because we file doesn't mean that they have to accept it? I was hoping it would work because we need his credit to try and keep the house if we can't do a 13.

[LadyInTheRed]

When in 2008 did you file your Chapter 7? If you cannot wait 4 years after the filing of your Chap 7 to file the Chap 13, your unsecured debts, including any deficiency of the van if you surrender it, will not be discharged in the 13. If it hasn't been 4 years, you may want to figure out a way to delay the foreclosure.

To get a Chap 13 plan approved and keep the house but surrender the van, you will need to show enough disposible income to pay your mortgage arrears during a 36 to 60 month plan plus pay your regular mortgage payments and all of your other expenses. So, if you paid your regular mortgage outside of the plan, your plan payment in a 36 month plan would need to be about $529 just to cover the mortgage arrears. It will have to be higher than that to include any attorneys fees paid in your plan and the trustee fee. If you propose a 60 month plan, the payment would be $326, plus the attorney and trustee fees. This assumes you have no non-exempt assets.

So just because we file doesn't mean that they have to accept it?

Nope. Your plan must be feasible and satisfy certain requirements. If the trustee or a creditor objects to your plan, and the judge doesn't think you have enough disposable income to make the plan payment, your plan will not be confirmed.

[hmsmith]

You might want to include what your husband's take home pay is as well. Do you have a savings or anything for emergency use? You won't want to spend all your extra money on a Ch 13 plan and then have nothing left for emergencies. Will you have another vehicle to drive if you give up your van? That's something to consider as well. I have 2 kids, and my husband makes quite a bit more, and we canceled our cable to save money as it was tight for us with just paying our rent and utilities. Maybe once you see an attorney for a free consultation they could let you know what they expect a Ch 13 pymt plan to be. My friend has 1 child and her and her husband make @ $50,000 a year and her payment is only $75 for 3 years (and she kept her home as well which her payments were around $1075---I don't know if the were current on that or not). If they ask you to pay $250 or $300 that seems very high with your income.

[j&ct94]

We filed in May discharged in September. We probably would not file for a few more months. We were served last month and just answered last week. We are trying for mediation, but not sure how that will go. We will need his credit to be kept up that way wouldn't we? And we know that the house and van are not going to be doable long term. We would risk being sued from the car company. I don't know what to do, if we ruin his credit and are not approved for the chapter 13 that leaves us with no where to live. But we need to get rid of this van to have a chance in mediation.

[keepsmiling]

I think you are going to have to include the assistance as income. (?)
If you cancel the cable and turn in the van you might squeak by.
Will you still have a vehicle? What's the story with that one?
I know how hard it is to be where you are. Go to work and lose benefits and it winds up costing you money unless you get a GREAT job. Good luck and PLEASE keep us posted. Your story may help someone else.
Oh... and welcome to the forum Keep asking q's. We do our best to help.

[j&ct94]

His take home pay varies between 2600- 2800 monthly. We don't have an emergency fund right now. We will start that with his next check. We do have another van, and if we could hold off filing until next tax time we could replace the van. Dh's van is a 95 ford windstar he keeps in in great condition though so it would be ok short term. I've been wanting to cancel the cable but we have to wait until september or oct to do that. If we payed the credit and other bills down would that be better if we just filed on the house?

[j&ct94]

Yes we have a 95 ford windstar dh keeps it in great running condition, but in feb, the serpintine belt went on it, puncturing something called an oil cooler that is no longer sold on windstars. We were unable to find one even through the dealer and I freaked out and starte looking for a van. We found a place that "helps" people with not so great credit. And they convinced us it was a good deal. We paid just over $8000 for a 2002 windstar. We both knew it was a bad idea, but we needed a van. So we signed. We absolutely will cancel the cable, if we have to file sooner would any cancellation fees go into bankruptcy?

[keepsmiling]

You can cancel cable at any time and it will be discharged whenever you file.
You'll feel calmer once you have a sit-down with an atty.
Hang in there.

[mountanddo]

My friend has 1 child and her and her husband make @ $50,000 a year and her payment is only $75 for 3 years (and she kept her home as well which her payments were around $1075---I don't know if the were current on that or not).

This is why I asked if they would even let them do a C13. Right now they are up to $529 to pay the mortgage arrears only. If they go for 60 months then the minimum is $329. How you live on 38k for 9 people is beyond me and still are paying for cable and internet now. What do you do for clothes and things that the kids need? I would think that you would qualify for full medical care on the income with so many people. What is the age range of the children?

[karm43]

Wow is there any other governing places that may able to help u temporary? Like CEO they can help you pay bills you brhind on. I would think there is something out their for besides bk

[Pandora]

You do realize that ALL income will be counted - even your husbands - when it comes to a Ch. 13, regardless if you file alone or if you file together. You can exempt certain things by half if only 1 spouse files, however all monies coming into the household count. Again - means test is only part of the equation; DMI is the major part.

"....After figuring out bills we could afford $250- 300 for payments"

This isnt meant to sound mean, so I hope you dont take it that way - however it must be pointed out: no - you actually cannot afford any Ch. 13 payment. You are receiving food stamps, so technically you dont make enough money to support your family. I doubt a judge or trustee will approve you in a Ch. 13 based on that aspect alone.

As to "ruining hubby's credit" - it's going to take a hit no matter what you do if it hasnt already. Remember its 10 years to clear a credit report from a Ch. 7 filing - and if you've ever fallen behind on anything, your credit takes a hit on that as well. While I understand your reasoning, you need to look outside the box and re-prioritize - credit scores do not make the person; ethics and morals do . There are places that will rent to those with BK on their credit reports....

[hmsmith]

You do realize that ALL income will be counted - even your husbands - when it comes to a Ch. 13, regardless if you file alone or if you file together. You can exempt certain things by half if only 1 spouse files, however all monies coming into the household count. Again - means test is only part of the equation; DMI is the major part.

"....After figuring out bills we could afford $250- 300 for payments"

This isnt meant to sound mean, so I hope you dont take it that way - however it must be pointed out: no - you actually cannot afford any Ch. 13 payment. You are receiving food stamps, so technically you dont make enough money to support your family. I doubt a judge or trustee will approve you in a Ch. 13 based on that aspect alone.

As to "ruining hubby's credit" - it's going to take a hit no matter what you do if it hasnt already. Remember its 10 years to clear a credit report from a Ch. 7 filing - and if you've ever fallen behind on anything, your credit takes a hit on that as well. While I understand your reasoning, you need to look outside the box and re-prioritize - credit scores do not make the person; ethics and morals do . There are places that will rent to those with BK on their credit reports....

I'm not an expert but I'd have to agree with Pandora. I know you say you can afford $250-$300, but you really can't or shouldn't even try. I understand your concerns of wanting to keep your house, because with 7 kids I can't imagine finding a place that will rent. Honestly I would see out an attorney to see if a Ch 13 is even a possibility for you. Good luck!