Chapter 13 "cramdown"??

[Minnymouth]

Kentucky,
Lawyer has suggested going from Chapter 7 to Chapter 13 to try to salvage my home.
He said "cramdown" was all debts into one and paid off in 5 years. Lawyer very "low key" answering questions for me...(we had SERIOUS PROBLEMS in Chapter 7)
In Chapter 13, do creditors get paid in full or a percentage of what is owed to them. I'm sure secured creditors are paid in full, what about unscucured?
Is anyone, not included in a Chapter 13?

[rrockinggramma]

chapter 13

the amount paid to the unsecured creditor depends on several factors. The main one is the amount paid into your plan for anywhere from 3 to 5 years. The amount paid in will depend on your monthly expenses/your income/and whats left over to send to the trustee. Some people have very little unsecured debt and use the chapter 13 to save homes/vehicles so they pay 100 percent ususally. However others who have lots of unsecured debt along with secured debt will pay anywhere from 10 percent to 100 percent depending on all of the variables. The cram down refers to giving the creditor the fair market value as "secured" and the difference owed on the debt because unsecured. Therefore, they would receive the same percentage on the unsecured part as all of the other unsecured creditors. An example would be if you owed 10,000 on a car that was only worth 5000 your lawyer would set up your plan to pay the creditor the 5000 as secured and the remaining 5000 would become unsecured. If you research some of the chapter 13 info sites, it will help explain this in more detail.

[Minnymouth]

Thanks for the info


Mines an unusal case, Title co failed to record title on MH - bank has lien on land only (hell of a surprise). MH is free and clear to sell by trustee. Big mess. Now home becomes "unsecured" with everything else. Land is only "secured" debt. $12,000 peice of land with a $63,500 mortgage against it!!!!
Under any normal Chapter 7 I would retain my home, but not now with the title being clear, the trustee can sell the home. Lawyer said Chapter 13 cramdown would consist of home/land only. All other debts would be wiped out or at 10% only.
I've paid 7 years (almost $70,000) on a piece of land only worth $12,000.
Kind of expensive land huh!!!!
Now they say I have to buy the house all over again in a cramdown and pay "fair market value" for it to keep it. LIke buying it all over again.
What about my $20,000 downpayment, $20,000 worth of improvements (4 covered decks/garage/landscaping/fencing?? Not counting 7 years of payments? Is all this expense down the tubes???
All because of a "clerical error" on the part of the bank and title company??
Sounds like I'm really being penalized hard for someone else's ERROR.
Nobody knew about the error for 7 years.
Chapter 7 was supposed to be a "new start" for me, and its become and "nightmare and wipeout" situation.
Not only the financial loss of all invested, but also the stress and emotional upset of loosing everything I have worked so hard for right here close to retirement age. Too old to start over for sure.
Debts were not "foolish debts". Almost all were from taking care of an invalid parent at home for 4 years. Have paid all the bills for the last 7 years till I got sick myself and got behind. Then everything went to "hell so to speak". Everybody encouraged me (including lawyer) to do a Chapter 7 to get a clean start in life. SURPRISE!!! Some "fresh start", huh???
Have been told I can sue the bank and title company for "lender negligence" but that won't save my home.
I feel that I have been totally "screwed by my lawyer (for not checking liens for perfection), the bank and title company (for their clerical error in not recording things properly).
And I understand the court will not show "any lenyency" in my case, as the Trustee more or less works for the creditors.
I can change from Chapter 7 to a Chapter 13 "cramdown" to try and salvage my home but if the payments over 3-5 years are "too high" I will still loose my home anyways.

Am very upset mentally, emotionally, financially, and phycially over all this that has happened since I filed bankruptcy. I am devastated that I am loosing my home thru a "clerical error" from 7 years ago.

My "new start" has turned into a "nightmare"!!!

But I still try to maintain a good outlook if I can. LIFE CAN BE TOUGH!

Thanks for your reply and suggestions,