General Questions

[bkdone]

Sounds like Chapter 13 could really help you here. I am no expert, but I was in a similar situation and Chapter 13 has been beneficial. We kept our house, and 26 months into the plan, we just refinanced using our equity and now the BK is closing. We originally had 56 months, with 100% pay back to the unsecured. But, we asked the court if we could refinance, and we only had to pay the $30K owing, and not the $41K balance that the data center shows.

[Ineedhelp2]

I thought that in some of the research I did that it is possible to negotiate down some of the debt in Chapter 13.

I am embarrassed to have to admit this, but I had been in trouble with credit cards one other time and thought I learned my lesson for good. I think I was about $25,000 in debt. I refinanced my house and paid off the cards for about 50% to 55%, but this was in lump sums and not in payments, except for one card which did allow me a 50% discount and about 6 months to pay.

What I am wondering is cc companies will accept a lower balance when entering into chapter 13.

Also, what happens if I don't go into chapter 13 and just don't pay? I think it's been almost a year since I paid any of my cc payments. I get lots of calls and most are now in collection. Will they eventually get a judgement and could that force a sale of my house? Is there any downside to just waiting until I am forced to go into BK? I think that for now I can keep current with my house payments and slowly pay off the arrears. They seem to be working with me at my mortgage company on that.

What I am really worried about is the 2nd mortgage I have. In less than a year I have to pay it off. I don't know if I can get it refinanced. Can the 2nd mortgage holder force a sale of the house? Can bankruptcy stop them as well, even though my mortage with them was for only 3 years (interest only) and I would owe about $30K, and they had no obligation to renew my mortgage?