Hello,
I will be starting year 4 of my 5 year CH13 plan in August ( I am married but wife did not file with me). Things have changed quite a bit for us since.. Mainly the value of our home.
When I filed, we estimated the house was worth maybe 300,000. We are in a very desirable neighborhood and values have skyrocketed in the past couple years (more so since Covid hot). I estimate we could get as much as 600,000 for the house if we sold today and it would probably take a week to sell (seriously!) I currently owe 210,000 on the house and the mortgage is current and was never in default.
If I was to payoff the full amount of my debt it would be about 80,000 (this is questionable though.. I'll ask more about that later). SO obviously, I would still be doing well financially if I sell but.. We want to sell and BUY another home as soon as we can.
My biggest concern is what happens to the state of my credit if I was to voluntarily end it and payoff the debt. As I understand it, If I complete the plan after 5 years, I would be able to qualify for a new mortgage fairly quickly afterwards (albeit at a higher rate). My wifes credit score/report is perfect with a Fico close to 800 (she was not attached to any of the debt I defaulted on, mostly business related that was personally secured). If I end it early, would it be a voluntary discharge or would it be a dismissal? Does ending it early make it harder for me to qualify for another mortgage? I would hate to have to wait a couple or more years before I could even consider it. If that is the case, I might as well just continue on with the payments.
We are not having trouble financially and can easily continue the payment plan. Am I crazy to wait and not cash out of the house? I just do not want to rent for a couple or more years just to wait until my credit slowly recovers to the point that I can qualify for a mortgage.
Another side question related to my debt.. I said I owed about 80,000 total, which is what I listed on my docs when filing.. but about 30,000 of that was never claimed and is now not listed as a creditor on my payment plan. Will I still be liable for that or did that creditor give up their right to it by not staking their claim?
Thanks!
I will be starting year 4 of my 5 year CH13 plan in August ( I am married but wife did not file with me). Things have changed quite a bit for us since.. Mainly the value of our home.
When I filed, we estimated the house was worth maybe 300,000. We are in a very desirable neighborhood and values have skyrocketed in the past couple years (more so since Covid hot). I estimate we could get as much as 600,000 for the house if we sold today and it would probably take a week to sell (seriously!) I currently owe 210,000 on the house and the mortgage is current and was never in default.
If I was to payoff the full amount of my debt it would be about 80,000 (this is questionable though.. I'll ask more about that later). SO obviously, I would still be doing well financially if I sell but.. We want to sell and BUY another home as soon as we can.
My biggest concern is what happens to the state of my credit if I was to voluntarily end it and payoff the debt. As I understand it, If I complete the plan after 5 years, I would be able to qualify for a new mortgage fairly quickly afterwards (albeit at a higher rate). My wifes credit score/report is perfect with a Fico close to 800 (she was not attached to any of the debt I defaulted on, mostly business related that was personally secured). If I end it early, would it be a voluntary discharge or would it be a dismissal? Does ending it early make it harder for me to qualify for another mortgage? I would hate to have to wait a couple or more years before I could even consider it. If that is the case, I might as well just continue on with the payments.
We are not having trouble financially and can easily continue the payment plan. Am I crazy to wait and not cash out of the house? I just do not want to rent for a couple or more years just to wait until my credit slowly recovers to the point that I can qualify for a mortgage.
Another side question related to my debt.. I said I owed about 80,000 total, which is what I listed on my docs when filing.. but about 30,000 of that was never claimed and is now not listed as a creditor on my payment plan. Will I still be liable for that or did that creditor give up their right to it by not staking their claim?
Thanks!
Comment