Filing to save My Home!

[CaseyKnox]

I'm so ashamed that My life has came to this. 😢


Just received notice, that our home will be foreclosed on May 19th.

Seems that Chapter 13 is the only option We have left. We're behind almost $8k.

We also have medical bills, approximately $25k between the two of Us.

I'm just afraid they will set our Chapter 13 payments too high.

Not to mention, I've only heard horror stories about the meeting of creditors.


What can I expect?

[justbroke]

Wherever you heard "horror stories" about the Chapter 13 Meeting of Creditors is just not the correct place to find advice. (Yes, I'm suggesting that BKForum is the only place to get solid information.)

The Meeting of Creditors for a Chapter 13 is typically... nothing other than the standard 7-13 questions. (Search the board for what will the Trustee ask.) A Chapter 13 is much different than a Chapter 7 because a Chapter 13 allows you to keep property and reorganize while dealing with arrears.

Don't fuss over the payment being "too" high. It is best to shop some attorneys -- think free consult -- and ask them the questions. They are likely not to provide you a bottom line because so much depends on your individual circumstances, priority debt, secure debt payments, and your disposable monthly income (DMI). Unless that is all done,m no one could even say whether you'll have a "high" payment.

In fact, you should never worry about how "high" the payment is. My payment was $7,100 before I converted (to a Chapter 7). I had over $5,000 in mortgage and arrears payments alone, but that paid my mortgage and paid the $30K arrears over the 60 months. Was my payment "high"? Not relatively because my DMI was $0. (I had no disposable income.) My main issue was that I paid $710 a month for the Trustee to write checks BUT that amount otherwise would have gone to the unsecured creditors. No money out of "my" pocket, so to speak.)

The real question is whether you can AFFORD to keep the house. That can only be determined by running the numbers. If you have a negative DMI in a Chapter 13, it probably means that you have property that you can't afford.

[nodebt]

Hi Casey, I filed BK 13 to save my home 6 1/2 years ago. It was so scary, I found a good BK attorney and he walked me through the whole thing. I did not know anything about bankruptcy at the time. I wish I would of found these support boards sooner and it would of been a lot less stressful. The attorney will run the numbers and find a payment you can handle and you will be a lot better off. It is not easy but you can do it. I was discharged on 1/26/16 and was so happy. My credit scores are now in the 700's and I got a new car with 0% financing about 3 weeks ago. I am still in my house and life is good. Best of luck to you!

[PANSYFACE]

Hi. Last year we were in the same place, only we had filed chapter 7 already. I had become sick and had to close my practice and we could not do a chapter 13. We almost lost our house and we were behind 4 years ! We found an attorney who was able to stop the foreclosure an d we applied for a federal program and got a loan modification. The mortgage company also forgave a bunch of back payments, penalties and fees. It ain't over til it's over. Our date was May 12. We began the process in mid April and got the foreclosure stopped May 11th ! Find an attorney now and find out what can be done asap.

[CaseyKnox]

Wherever you heard "horror stories" about the Chapter 13 Meeting of Creditors is just not the correct place to find advice. (Yes, I'm suggesting that BKForum is the only place to get solid information.)

The Meeting of Creditors for a Chapter 13 is typically... nothing other than the standard 7-13 questions. (Search the board for what will the Trustee ask.) A Chapter 13 is much different than a Chapter 7 because a Chapter 13 allows you to keep property and reorganize while dealing with arrears.

Don't fuss over the payment being "too" high. It is best to shop some attorneys -- think free consult -- and ask them the questions. They are likely not to provide you a bottom line because so much depends on your individual circumstances, priority debt, secure debt payments, and your disposable monthly income (DMI). Unless that is all done,m no one could even say whether you'll have a "high" payment.

In fact, you should never worry about how "high" the payment is. My payment was $7,100 before I converted (to a Chapter 7). I had over $5,000 in mortgage and arrears payments alone, but that paid my mortgage and paid the $30K arrears over the 60 months. Was my payment "high"? Not relatively because my DMI was $0. (I had no disposable income.) My main issue was that I paid $710 a month for the Trustee to write checks BUT that amount otherwise would have gone to the unsecured creditors. No money out of "my" pocket, so to speak.)

The real question is whether you can AFFORD to keep the house. That can only be determined by running the numbers. If you have a negative DMI in a Chapter 13, it probably means that you have property that you can't afford.

They will approve a Chapter 13 repayment plan with no DMI?

Our DMI isn't negative, just a pretty small amount.

We also live below the state medium income, does that mean that We more than likely will not pay back most of the medical bills We owe?

Also, what do you mean you paid $710 a month for the Trustee to write checks?

All this is overwhelming 😕

[CaseyKnox]

Hi. Last year we were in the same place, only we had filed chapter 7 already. I had become sick and had to close my practice and we could not do a chapter 13. We almost lost our house and we were behind 4 years ! We found an attorney who was able to stop the foreclosure an d we applied for a federal program and got a loan modification. The mortgage company also forgave a bunch of back payments, penalties and fees. It ain't over til it's over. Our date was May 12. We began the process in mid April and got the foreclosure stopped May 11th ! Find an attorney now and find out what can be done asap.

Your post gives Me hope!! We're less than a year behind, but it's still a scary situation. I hope my story ends as well as yours! ☺

[CaseyKnox]

Hi Casey, I filed BK 13 to save my home 6 1/2 years ago. It was so scary, I found a good BK attorney and he walked me through the whole thing. I did not know anything about bankruptcy at the time. I wish I would of found these support boards sooner and it would of been a lot less stressful. The attorney will run the numbers and find a payment you can handle and you will be a lot better off. It is not easy but you can do it. I was discharged on 1/26/16 and was so happy. My credit scores are now in the 700's and I got a new car with 0% financing about 3 weeks ago. I am still in my house and life is good. Best of luck to you!

Thank you!! I hope our monthly payments are affordable. I want to save my home, and rebuild my credit. Hope mine ends as well as yours!! ☺

[BNKRPTinNC]

Chin up CK. You will find that you are not alone and your predicament is not unique. Many of us have been thru similar and worse and have lived to tell our tale of success. We were behind over $8k on mortgage, several months on car and credit card companies hounding us daily. Bank was in the process of foreclosure and auto loan company had sent a tow truck to repo the car. We were fortunate in having found excellent representation. At the 341 it was objected to by the trustee but the judge has the final say and our plan went as originally planned. Not saying it was a piece of cake but with a proper budget it can be done. Best financial move I have ever made as I now have a decent savings account, nothing but a mortgage payment and a credit score that is in the low 800's. Granted it didn't happen overnight and the ride, at times, was a bit bumpy but oh what feeling when you have completed the plan.

Best of luck to you and we are all pulling for your success!

[CaseyKnox]

Chin up CK. You will find that you are not alone and your predicament is not unique. Many of us have been thru similar and worse and have lived to tell our tale of success. We were behind over $8k on mortgage, several months on car and credit card companies hounding us daily. Bank was in the process of foreclosure and auto loan company had sent a tow truck to repo the car. We were fortunate in having found excellent representation. At the 341 it was objected to by the trustee but the judge has the final say and our plan went as originally planned. Not saying it was a piece of cake but with a proper budget it can be done. Best financial move I have ever made as I now have a decent savings account, nothing but a mortgage payment and a credit score that is in the low 800's. Granted it didn't happen overnight and the ride, at times, was a bit bumpy but oh what feeling when you have completed the plan.

Best of luck to you and we are all pulling for your success!

Thank you :-). Does the trustee object chapter 13 plans quiet a bit?

Congratulations on your credit score!! When did you file, and how long did it take to get to this point?

Any suggestions what I should do prior to filing. Looking to file the next week or two.

[BNKRPTinNC]

Thank you :-). Does the trustee object chapter 13 plans quiet a bit?

Congratulations on your credit score!! When did you file, and how long did it take to get to this point?

Any suggestions what I should do prior to filing. Looking to file the next week or two.

Can't put a % on 341's that have objections to confirmations put at my hearing the place was packed and not one was objected to. Our objection came after the fact (should have clarified that) but put aside by the judge and plan was confirmed. We filed 11/08 with confirmation on 2/09. We made the final decision to file when we were down to a near $0 bank account and a little over $100 bucks in our pockets. My only suggestion to you is to become thoroughly educated in the process. Search this forum and don't hesitate to post a question as there are many here that will give sound advice.