A couple weeks behind on payments

[BC7114]

I am filing on sept. 1st. At that point in time I will be a couple of weeks behind on my car payments and house payment (have to use my next 2 pay checks for lawyer). I should be able to get caught up by the time my 341 rolls around. Should I have any problem reaffirming. I would imagine the way things are going in the banking industry these banks are eager to reaffirm. Thanks, for your help.

[123ABC]

I am in the same boat as you. I had to use my paychecks to pay the lawyer and couldnt wait any longer. A judgement had been won and they were trying to garnish my wages. Capital One of course. Used the paycheck that should have gone to pay my mortgage and then couldnt use the next one because I had to use it for utilities or I was going to get shut off. Now I am behind AND trying to get a mod on the house during the whole bk process. Very stressful....

[hamburgervol]

I am filing on sept. 1st. At that point in time I will be a couple of weeks behind on my car payments and house payment (have to use my next 2 pay checks for lawyer). I should be able to get caught up by the time my 341 rolls around. Should I have any problem reaffirming. I would imagine the way things are going in the banking industry these banks are eager to reaffirm. Thanks, for your help.

The house you are probably okay on.

[justplaintired]

I was told being current on the house was important, so make sure you are before filing. Far as reaffirming, that is up to you. Lots on here just do a ride through on the house. So talk to your attorney and see what he/she says about reaffirming.

[lrprn]

I am filing on sept. 1st. At that point in time I will be a couple of weeks behind on my car payments and house payment (have to use my next 2 pay checks for lawyer).

From your post, it seems like you already know that in order to keep assets when you file Ch 7, the payments need to be up to date on filing day.

Your auto lender will have every right to ask the court to lift your automatic stay and repossess your car, even if you've made up the payments in the meantime. Doesn't mean they will do it....just means they could. Same thing for your mortgage lender.

Should I have any problem reaffirming.

Signing a reaffirmation may coddle the lenders enough that that they don't try to lift your stay. However, if you are significantly upside down on the house or the car, you really need to think about whether reaffirming is in your best interests.

You said you thought you could catch up on both mortgage and car before your 341. Is there some compelling reason you need to file on Sept 1? If it's income concerns, you can file anytime up to Sept 30 and the six month lookback for income will still remain March 1 through Aug 31. Do you have a creditor who has filed a court case against you?

[BC7114]

lrprn,
Thanks for the info. I am not significantly upside down on my cars or house and I need all three, so I plan on reaffirming them all. My lawyer has told me that he suggest a reaffirm rather than a ride through (especially with Ford Credit). At the time of filing I will still be in my grace period for my house and will have that payment made before my grace period is over. The cars will be slightly outside the grace period but only a few days. It shows on the bk filing whether I am reaffirming or not, right? So if a creditor see I am reaffirming on my filing what are the odds they will lift the stay, even if I am a couple weeks behind.
As far as waiting to file I have to get this going and done by the end of the year. I am a salesman and need a secured credit card to pay travel expenses (my company reimburses me). So I need to get this done so I can line up finances for my travels that start first of feb.

[Chowder]

I was told being current on the house was important, so make sure you are before filing.

This must be one of things that are different depending on area.
I was told it was important to be current at discharge.

[lrprn]

This must be one of things that are different depending on area. I was told it was important to be current at discharge.

I hate to tell you this, but whoever told you that a Ch 7 filer can be in arrears on filing day and still keep the house after filing is mistaken. The current bk law is quite clear on this point.

Now it's possible that a mortgage company may have so many foreclosures on the books right now that they would decide in individual Ch 7 cases not to immediately pursue foreclosure, especially if the filer catches up on the payments by discharge. However, the mortgage lender certainly can pursue foreclosure if you are in arrears on filing day if they want.

[BC7114]

Just got off the phone with my attorney. He said it is really up to the banks but they are going to want your money before the want your used car or have to forclose on a house if you are only a couple of weeks late and you catch up and want to reaffirm. So I am playing the cards and still filing on Sept. 1st.