Chap 13 than Chap 7 than Chap 13

[ozzy866]

Long story short.....
We were in a chapter 13 in the beginning of 2008. I ended up in the hospital for about 3 total months and fell behind on payments. The trustee raised my monthly payment from 1500 to 1700 and we continued to pay the 1700. Bank of America shut this down and wouldn't accept this plan made by the trustee.
My lawyer got the 13 dismissed and we were able to file a chapter 7. Our 341 is in 2 weeks and we are above the means test but our lawyer said we are OK..
My SUV got totaled new years eve...Full coverage....lawyer says I'm OK to replace it.
Bank of America will not budge on a mortgage re-modification. We are even working with a nonprofit called NACA.
WoW what drama.....
We don't know if we should keep the house or look for a rental. Lawyer says to proceed with it on the BK with intent to reaffirm.
I talked to my lawyer today and he said we could file another chapter 13 after the 60 days of chapter 7
very stressful----what a journey----still grateful.
Oz

13 to 7 to 13.....huh?

[justbroke]

Well, technically it's dismissed Chapter 13, then a Chapter 20.

This is a strategy that costs a bunch of money, but can work. If you get your discharge in your Chapter 7, you immediately file a chapter 13 to protect your home from being foreclosed upon. You just can't get a discharge in the subsequent Chapter 13. This is known as a Chapter 20.

I like that your lawyer is up for doing a Chapter 20. We need more like him/her.

[ozzy866]

We are really hoping to keep the house but don't want to do a 13 after the 7.
Does this make since?
Oz

[HHM]

You need to make a decision at this point about the house.
1. Is the house really worth saving (how much is it worth, how much do you owe, if it is more than 5-10% upside, not worth keeping).
2. Assume you DO NOT get a modification, can you afford to keep the house?

If you want to keep the house and the bank won't work with you, your ONLY option is a follow-on chapter 13 once the chapter 7 is discharged.

[ozzy866]

If we don't get some type of modification we will not be able to afford the house. We are behind around 8-9 payments.
We won't have all the CC and other unsecured debt.
We will have 50K in student loan debt......
We bought our home for $163,000 in Indiana 4 years ago. Several neighbors have had their houses foreclosed on and they are selling for $107,000-$120,000.
If we let the house go our means test hits the fan.
We are already over on the means with explanations for medical.
Our jobs appear stable. My wife took a 4% pay cut and I work for a nonprofit.
If we did rent should we wait until after the 341 which is in a couple weeks. It states on my paperwork intent to reaffirm. Can we back out of the house at 341?
We had our only vehicle totaled over the last weekend so this might complicate things.
In short....we are very stress out but want to keep the house. We can afford it if things go right.
I don't know if we can get a rental for what we pay for on our mortgage payment.
Thanks
OZ

[aces67]

I'm not sure how much help this will be but we did a 7 that was converted to a 13 and back to a 7. We were a little above the means but our lawyer was able to push it through. We used dh's truck note on our means test with intent to reaffirm but we ended up letting it go back. It wasn't an issue and we still got our discharge.

If your going to be struggling to keep paying the house note then I would not try to keep it.

It's better to get a fresh start.

[HHM]

If we don't get some type of modification we will not be able to afford the house. We are behind around 8-9 payments.
We won't have all the CC and other unsecured debt.
We will have 50K in student loan debt......
We bought our home for $163,000 in Indiana 4 years ago. Several neighbors have had their houses foreclosed on and they are selling for $107,000-$120,000.
If we let the house go our means test hits the fan.
We are already over on the means with explanations for medical.
Our jobs appear stable. My wife took a 4% pay cut and I work for a nonprofit.
If we did rent should we wait until after the 341 which is in a couple weeks. It states on my paperwork intent to reaffirm. Can we back out of the house at 341?
We had our only vehicle totaled over the last weekend so this might complicate things.
In short....we are very stress out but want to keep the house. We can afford it if things go right.
I don't know if we can get a rental for what we pay for on our mortgage payment.
Thanks
OZ

Your goals and the facts have answered this question; you just need to get past the emotional barrier.

You need to dump the house. You are playing the "what if" game right now, you need to step back and review the situation objectively.

[ozzy866]

thank you for your knowledge..

If we let the house go our means test hits the fan.
We are already over on the means with explanations for medical.
Can we back out of the house at 341?
Thanks
Oz

[aces67]

thank you for your knowledge..

If we let the house go our means test hits the fan.
We are already over on the means with explanations for medical.
Can we back out of the house at 341?
Thanks
Oz

Run it by your lawyer just to be sure but we backed out of dh's truck AFTER the 341. I think you can do the same with the house.