Can someone help?

[BULLDOGNUNEE]

We are currently in chapter 13, we have missed a few payments in the past 2 years maybe 10. We just cannot afford it anymore. Does anyone now, can we surrender the house? If so do we still have to pay the house insurance until we leave? Do we have to pay the difference back if they don't sell the house for as much as we owe? How long in the house do we have? We are not in forclosure yet we are still paying our payments. Also we are not married but we are both on the house note, can I claim chapter 7 or will they go after him for the money? Thank you to anyone that can awnser some of these questions.....

[Minnymouth]

When you realized you could not meet the payments in the Chapter 13, why did you not contact your attorney or the Trustee and have the payments adjusted so you could meet them.

Now you will get a dismissal of your Chapter 13, creditors will be banging on your door again, and it will be just like you never filed.

Did you do the Chapter 13 to keep your home? Or were you behind on house payments then also?

Only possible option now is probably a Chapter 7 and let the home go.... but requires refiling and converting to a Chapter 7.

If both your names is on the note, then you both may need to file together to get it cleaned up..... otherwise the mortgage company can go after the other party if only one files.

Keep us posted.

[woeisme]

Have you missed 10 house payments or 10 trustee payments? I can't imagine the trustee allowing that many missed payments without it already being dismissed, while I can see the morgage co. not having foreclosed yet just due to the backlog of forclosures at the moment.

You are still liable for the house, so need to keep insurance on it, sometimes even after you leave, until the paperwork is final to show it is now in the possession of the bank, not you.

If both of you are on the bank note, they will definitely go after the one who doesn't file BK, you will each have to file to get protection. You mentioned "we" are in a CH 13, I didn't know that two unmarried people could file together. Is the CH 13 in just one of your names right now, or both? But you definitely need to contact your lawyer to see what you can do about surrendering the house and possibly converting to CH 7 if that is what is dragging you down. You will probably both need to file CH 7 if that is the route you take, otherwise the bank will come after the one who doesn't file for back payments and possibly a deficiency balance.

[CindyLou]

As far as the insurance...you are not "required" to keep it. The lender will purchase a hazard policy and charge the amount to your balance which would then be discharged in the BK. However, this would leave you without liability insurance in case someone is injured on your property, etc.... So it would be a good idea to keep a policy...

[BULLDOGNUNEE]

Help

We have missed ten trustee payments and they were not all in row they were scattered through 2 1/2 years. The bankrupsy is only in his name but I also had claimed 13 prior and yes all to save this stupid house, I had lost my job here in michigan after almost ten years, so then he claimed 13 to save it again. They will not ajust the payments because of that reason that this is the secont time and we were like 29,000 behind. The lawyer herself had said that it could take a year for the trustee get caught up and then we would still have six mounths after that. This house is just not worth it and we can't even afford the upkeep on the house we are paying 400 a week. That is why we are wondering if we could surrender the house and what would happen? Should we call the mortgage company and ask them or the lawyer? Thanks so much for everyone's help. Maria

[BULLDOGNUNEE]

michigan its a great place to live right now

Oh also we live in michigan so the lawyer had said they are so backed up in this state with bankrupsy. Thanks again

[BULLDOGNUNEE]

Any More Advice From Anyone?

[Cali]

I don't have any advice, just amazed that you have missed that many payments and nothing has happen to your case.

[Flamingo]

We have missed ten trustee payments and they were not all in row they were scattered through 2 1/2 years. The bankrupsy is only in his name but I also had claimed 13 prior and yes all to save this stupid house, I had lost my job here in michigan after almost ten years, so then he claimed 13 to save it again. They will not ajust the payments because of that reason that this is the secont time and we were like 29,000 behind. The lawyer herself had said that it could take a year for the trustee get caught up and then we would still have six mounths after that. This house is just not worth it and we can't even afford the upkeep on the house we are paying 400 a week. That is why we are wondering if we could surrender the house and what would happen? Should we call the mortgage company and ask them or the lawyer? Thanks so much for everyone's help. Maria

We have friends in Michigan and the unemployment rate is sky high in your state creating all sorts of issues for many people. I wish you luck in getting through this. Since you have missed so many payments and have a lot of issues, I highly suggest contacting your attorney and going over the entire situation to see what the best next step is for you to take at this period of time to benefit you in the long run. Right now it is not a pretty picture but if you get the right advice and make the right move, all will be better in a few years. Best of luck!

[MajorMike]

wow, we can only miss 2 or it's dismissed!

[lrprn]

Any More Advice From Anyone?

Sounds like you've finally accepted that the house is more than you can afford...a very painful admission but necessary to move forward and start living for the future and within what you make now...good for both of you!

Contact your lawyer and tell him/her you want to surrender the house to your lender. Your lawyer will get the ball rolling.

It's also time to sit down with your lawyer to take a good look at your overall gross income against your expenses on the Means Test and Schedules to see if you now might possibly now qualify for Ch 7. Even if you don't, your Ch 13 plan can be amended by your lawyer to match your current income lievel without the house.

[BULLDOGNUNEE]

Thanks to all that helped us. Just a few more questions I promise. First let me say we missed 10 weekly payments not monthly. Does any know what happens in a short sale? We spoke with the attorney yesterday and I am just questioning why she would tell us to sit tight and just pay when we can. Wouldnt that just put us further in the whole? Is she getting somthing out of it, we have already said we know we can't afford this. I think they have already been paid? Also someone thinks he makes to much money to claim 7? Is that true just cause we have cable , animals,and cell phones and our kids are in cheerleading and marchig band we cant claim 7. I added our expenses and we dont have $50 dollars and thats not including clothing for school or perscriptions or if somthing was to happen to our one and only car. Well thanks again to anyone who can help a couple who don't know to much about this stuff.

[rrockinggramma]

which district in michigan? I am in eastern district. If you convert, there is a fee to convert but if you let the house go now, nothing will happen except you will be able to live rent free for a year. (Michigan has 6 month redemption clause after the sheriff sale) so if you can I would file to convert (if you qualify) for a chapter 7 and move on with your life. On your credit report, will say IIB/zero balance. You could also include all NEW debt taken on since you filed your chapter 13.

[BULLDOGNUNEE]

We are in southeast michigan, ( Wayne county ).