We had our pre-filing meeting with our attorney yesterday, so just wanted to provide some updates. (Not that anyone is following... but maybe I’ll look back on these posts later!)
It’s looking like the trustee will pay the car and mortgage, and then our payment will be $1200 or so on top of that. Our attorney recommended we estimate our mortgage as $3200 even though it’s currently $3455, because we had an escrow shortage last year and once it’s adjusted this year it could be considerably lower. He said if we go in saying it’s $3455 and it’s lower than that, the trustee still gets the same overall payment and then disburses that to our debt, so it’s better to try and be realistic about the future payment.
Some parts of the meeting were pretty much what I expected, the overall payment to the trustee is estimated at $5300 right now and I was expecting $5700. We’ll see what it actually ends up being. A lot of our budget expenses have already had to be slashed so that we are meeting some minimum percentage paid back of 5.8%? Does anyone know anything about that?
One awesome surprise is that my two student loans WILL be paid during this and one of them may be able to be discharged at the end because it’s not technically a student loan but a private loan! That one is co-signed with my dad and our attorney said there’s no way to know if they’ll mark it on my dad’s credit report, so here’s hoping they don’t... I mean if it’s discharged I imagine it’s gonna have some type of mark!
One bad surprise is my husband is an authorized user on his parent’s Kohl’s card and we need to remove him or risk that Capital One freezes their whole card account. Of course our families don’t know (yet).
The parent plus loan payment that is entirely in my dad’s name will just have to be budgeted with what we end up having for expenses after all this.
We love our attorney and have such a good feeling about him. He didn’t shame us or make us feel awkward at any point and he really just seemed invested in getting us the best deal possible. There were even some things he warned us the trustee could and would question, but said that legally we have the documentation to support it.
We are preparing ourselves for a very different lifestyle but we will have some savings at least. COVID has us mostly home bound anyway (although we major overspend on groceries). But I’m told Texas is one of the better states to file bankruptcy in, so there’s that too. There’s a lot I can’t stand about my red state but I’m ok with the bankruptcy law ha!
It’s looking like the trustee will pay the car and mortgage, and then our payment will be $1200 or so on top of that. Our attorney recommended we estimate our mortgage as $3200 even though it’s currently $3455, because we had an escrow shortage last year and once it’s adjusted this year it could be considerably lower. He said if we go in saying it’s $3455 and it’s lower than that, the trustee still gets the same overall payment and then disburses that to our debt, so it’s better to try and be realistic about the future payment.
Some parts of the meeting were pretty much what I expected, the overall payment to the trustee is estimated at $5300 right now and I was expecting $5700. We’ll see what it actually ends up being. A lot of our budget expenses have already had to be slashed so that we are meeting some minimum percentage paid back of 5.8%? Does anyone know anything about that?
One awesome surprise is that my two student loans WILL be paid during this and one of them may be able to be discharged at the end because it’s not technically a student loan but a private loan! That one is co-signed with my dad and our attorney said there’s no way to know if they’ll mark it on my dad’s credit report, so here’s hoping they don’t... I mean if it’s discharged I imagine it’s gonna have some type of mark!
One bad surprise is my husband is an authorized user on his parent’s Kohl’s card and we need to remove him or risk that Capital One freezes their whole card account. Of course our families don’t know (yet).
The parent plus loan payment that is entirely in my dad’s name will just have to be budgeted with what we end up having for expenses after all this.
We love our attorney and have such a good feeling about him. He didn’t shame us or make us feel awkward at any point and he really just seemed invested in getting us the best deal possible. There were even some things he warned us the trustee could and would question, but said that legally we have the documentation to support it.
We are preparing ourselves for a very different lifestyle but we will have some savings at least. COVID has us mostly home bound anyway (although we major overspend on groceries). But I’m told Texas is one of the better states to file bankruptcy in, so there’s that too. There’s a lot I can’t stand about my red state but I’m ok with the bankruptcy law ha!
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