Questions with filing Chp. 7

[tyspruiel]

Greetings all, I am new to the forum and have a few questions. My spouse and I have filed under Chapter 7 and are needing some advice. Currently we do not have any secured debt ( credit cards ) so that is not a concern. We are behind on our mortgage pymts and this will be the 3rd month. We do not want to include this in our bk and are trying desperately to catch up. We have 2 vehicles and are letting one go back so that we can free up some extra monies. My question is, 1. will we have to catch up on our mortgage before the meeting with the creditors. 2. our biggest debt is with "beneficial" (22,000.00 unsecured) and they have been very unpleasent to deal with and we are afraid that they will be the ones to challenge us as far as getting a judgement against us. I read somewhere on the forum that one was filed after their bk and now they are having problems. What can we do so that it will not happen to us as far as a judgement. I hope that I am making since. Our att. told us that we may tell our creditors that we are filing but we do not have a case # yet. Please help and advise. Thanks for the support.

[HHM]

Greetings all, I am new to the forum and have a few questions. My spouse and I have filed under Chapter 7 and are needing some advice. Currently we do not have any secured debt ( credit cards ) so that is not a concern. We are behind on our mortgage pymts and this will be the 3rd month. We do not want to include this in our bk and are trying desperately to catch up. We have 2 vehicles and are letting one go back so that we can free up some extra monies. My question is, 1. will we have to catch up on our mortgage before the meeting with the creditors. 2. our biggest debt is with "beneficial" (22,000.00 unsecured) and they have been very unpleasent to deal with and we are afraid that they will be the ones to challenge us as far as getting a judgement against us. I read somewhere on the forum that one was filed after their bk and now they are having problems. What can we do so that it will not happen to us as far as a judgement. I hope that I am making since. Our att. told us that we may tell our creditors that we are filing but we do not have a case # yet. Please help and advise. Thanks for the support.

You already filed...?
Also, you must list all your creditors. There is no way to avoid listing your mortgage, you have a duty under the BK code to list all you creditors and all your assets, and guess what, your house is a mighty big asset and your mortgage is a mighty big creditor.

If you are behind on your mortgage and already filed a chapter 7, you can all but kiss your house goodbye (unless you can catch it up). What are you doing, did you meet with an attorney?

As for a judgment, assuming you included them in the BK, Beneficial would violate the automatic stay if they got a judgment against you at this point. And really that is the least of your concerns. You have a real risk of losing your house. Technically, under a chapter 7 its at the creditors discretion to allow you to make up payments on the house, they are not required to under the BK code. They can file a motion to lift automatic stay anytime and it will probably be granted.

You may need to consider converting to a chapter 13 (assuming you are otherwise eligible). Also, if you realistically have the income to bring your house current, my quess, your looking at some objections to your Chapter 7 in the near future.

[tyspruiel]

We have talked to an attorney and put down half of the fee to file. The paper work has not begun yet. Should we try and catch up on our mortgage first before we proceed I am so nervous right now of thinking of losing our home. We listed all our creditors including our home. Should we also tell our mortgager that we are filing bk? We are almost 3 months behind and our pymts total almost 3000.00 dollars. If we get on a repayment plan and are still behind when we file is it still possible that they will take our home? Please help me here. We are trying desperately to work this out.

[HHM]

These are issues your attorney should have gone over with you. I am hoping he/she is waiting until you pay in full and reviews your situation and he can then recommend a chapter 13 or tell you to get caught up on the mortgage before filing.

Have you told your attorney you are behind on your Mortgage?

If you do a chapter 7 and are behind on your mortgage when you file, and can't bring it current, you run a real risk of having the finance company taking your house back, or at least complicating your bankruptcy.

[rrockinggramma]

try to pay what you can to keep it going. Work out a payment arrangement if you can. Once your chapter 7 is discharged, file a chapter 13 on the mortgage (only debt you will have left, perhaps?) and then get caught up through the chapter 13.

[HRx]

Hi,

You'll want to do everything possible to get your mortgage current, prior to submitting your chp7 petition - if you want any chance of keeping your house.

Good Luck!

[tyspruiel]

My husband is going to apply for a hardship out of his 401k. That will cover the missed payments on the mortgage and we should be back on track after that. We were paying everyone else and got behind with mortgage. Once everything is discharged we should not have to do a chapter 13.