Hybrid plan of Chapt 13 ...scared

[po man]

That is the plan. However, she was told to wait and see if there is a defeciency on the mortgage after it is sold. She was told that if there is not, then she did not need to file.
Second problem, she has since moved back in with me, so now wouldn't my income be included in contributing to her. All she has is a vehicle payment and maybe the house.
I was curious if she needed to go ahead and file before foreclosure or prior to any judgements from the mortgage, or just wait and see what happens, then decide. The kicker will be my income contributing to the household. Any sugestions on waiting or not before filing? If I remarry her down the road, I don't want a judgement to hurt me.

[CindyLou]

Ok... the bad news. Wife and I are trying to work things out. Now I have to fix and pay for all that I screwed up...lol. But, its been better than when we were married.

LMAO..... "OK...the bad news..." You better not let your wife see that quote!!!

[EveryDayAdam]

I just wanted to chime in and mention that I too am doing one of these "hybrid" plans that po man mentioned.

After analyzing the final filing papers from my attorney (just filed today BTW). It seems they are setting it up like this:

A chapter 13 can be setup for payment in two parts...You pay one amount for so many months to cover your priority debts, then you can pay another amount for the remainder to cover your unsecured debts.

But the caveat is that you HAVE to pass the means test...not the median income test, but the means test...If you take all of your income, and subtract all of your allowed expenses...you have to have a negative monthly disposable income.

Since the means test is what determines your chapter 13 payment...your priority debts, by law, MUST be paid in full...so that much of your chapter 13 is set, regardless of the means test. But after you are done paying that, your payments revert back to your regular monthly payment amount...which if you have a negative monthly payment amount, your payment amount is zero, and then you've just completed your chapter 13.

I am looking at my filing papers and my monthly disposable income is listed as "-367.16". So it looks like a 2 part repayment plan...one amount for the priority debts that MUST be paid, and then 0 for everyone else, as dictated by the means test.

Those lawyers are a sneaky bunch!

[po man]

Well, we moved out two weeks before my sale date. Did not hear the first word from the Sheriff's Office on the foreclosure. The house was never posted and not the first sign was placed in the yard. Shortly after the sale date, neighbors said that people were cleaning inside and later a Realtor sign was placed in front of the house. I drove by and noticed that the house is "Under Contract" already. I could not believe that nothing was ever posted on the house or ever mentioned foreclosure.
Just paid the BK off and now I am waiting for my discharge papers.

Now I just have to pay for my ex to file in case of a judgement on her. Hope all flies well with that. We are planning to remarry next year if all remains as it is now...Better than ever.
Thanks for all the help from everyone.

[EndInSight]

Gosh this whole thread is sure interesting.

Filing under the old laws didn't have anything like this or maybe it did no one told me?
My attorney was to put mildly was NOT nice and I was TOO stupid to put any research into learning the in's and out's.

I sure would of been ahead (maybe) had I of done (more) homework but I had to file 13 since the only secured item was the house and there was no way I could of made the payments. Besides the fact that we had been making VERY large payments and only had less than 10 years left. Refi was not possible due to the limited/fixed income after becoming a widow.
Everything else was free and clear making for a hefty amount to lose in a 7.

Looking back had I of gotten VERY creative things might of worked out a bit differently

Oh well what's done is done and 50 months are under my belt.

So onward and upward.

[lrprn]

If it helps, EIS, the so-called "Ch 20" (file Ch 7 first to wipe out unsecured debt, then file Ch 13 to save assets) officially disappeared as of Oct 2005. Some districts may still unofficially allow it, but it's not nearly as common as it used to be. BAPCPA stopped the practice pretty thoroughly.

Oh well what's done is done and 50 months are under my belt.

Excellent attitude! You are so close to done - hang in there!

[EndInSight]

[QUOTE
Excellent attitude! You are so close to done - hang in there![/QUOTE]

Gosh thanks ! Your words of encouragement mean ALOT to me!

Even tho my payments have risen by 40$ a month (recently) due to the attorney having to file an extra "whatever" making a secured debt unsecured, I've been able to cover the extra w/o complaining, just tighten up the belt a bit...hard but not impossible, just add a salad with the PB&J for dinner and lunch isn't bad as long as it's crunchy PB!

I did find it strange how I found out about the increase......makes NO matter with
"the-in-sight' SO so visible, right?

Thanks again.
This BB is wonderful!

To all of you filing ow albeit 7 or 13...............IF I can do this...it's possible for everyone!

Posh

[EveryDayAdam]

Hey everybody...sorry to resurrect an old thread, but I am adding something: I had my 341 meeting in one of these "hybrid" plans, and I do want people to know that it is real...I had no objections from the trustee, and i'm paying $199/mo for 11 months on my chapter 13...After that, I am discharged!

The 341 meeting was a piece of cake...a couple of no-shows, but the trustee seemed really nice and genuinely interested in helping people succeed, and was really working with people to give them a payment that would work. I got up there, answered 4-5 questions...he confirmed my plan right then and there, and I was done with 3-4 minutes.

So now all I have to do is stay under the radar for a year, and I am discharged!

I also want to say that I am soooo glad I had a lawyer throughout the whole process...it was definitely worth the money I am paying. When I went through the BK paperwork on my own, I think I figured a chapter 13 at $650/mo for 60 months...But because of my lawyer, I am paying $200/mo for 11 months....Having an attorney saved me over $35,000 in payments to the trustee.

[lrprn]

i'm paying $199/mo for 11 months on my chapter 13...After that, I am discharged!

The way I understood these hybrid plans, the first $199/mo is to pay your attorney's fees, then after your attorney is paid by the Ch 13, the attorney amends to file a Ch 7 case to wipe out all the unsecured debt.

So.....is the plan for your lawyer to file your Ch 7 right after your Ch 13 is discharged, EDA?

The 2005 bk law was deliberately written to stop the so-called "Chapter 20" - filing Ch 7 or 13 first followed by the other chapter - so it's not a slam dunk that this "hybrid" approach will be accepted in all local courts. Nice that it seems to be in yours, EDA.

[EveryDayAdam]

The way I understood these hybrid plans, the first $199/mo is to pay your attorney's fees, then after your attorney is paid by the Ch 13, the attorney amends to file a Ch 7 case to wipe out all the unsecured debt.

So.....is the plan for your lawyer to file your Ch 7 right after your Ch 13 is discharged, EDA?

The 2005 bk law was deliberately written to stop the so-called "Chapter 20" - filing Ch 7 or 13 first followed by the other chapter - so it's not a slam dunk that this "hybrid" approach will be accepted in all local courts. Nice that it seems to be in yours, EDA.

Well, looking at the schedules that were filed, my attorney worked it out so that my disposable income on the means test was negative. But according to BK law, secured and priority debts must be paid in full in a chapter 13. However, after your secured and priority debts are paid, the remainder of your payment is dictated by the means test.

So basically: The attorney works the means test so you have negative disposable income, and enters a plan that will pay the attorney fees. Any secured debts get paid outside of the plan. Once you've paid the only priority debt, your attorney's fees, then (according to BK law) your chapter 13 payment drops to $0 since you are negative disposable income.

It looks like it works really well for people who don't own any property or aren't behind on any secured debts.

[po man]

lrprn ... it does not or did not convert to a ch7 for us. I have just received a check from the trustee for overpayment since I paid the bk off. I am wandering how long I have before discharge papers arrive. It has been a 13 the whole time. Hired attorney 250 down, filed ch13 @ 199 month, had 341, eight months later confirmed, ninth month paid off, eleventh month received overpayment check and waiting discharge.
To see all of the stories and headaches that some are going through makes me realize just how lucky I have been. I really feel for some of you out there getting a run around. I have learned alot from all of you. I had a very nice house, nice vehicles, great credit w/ long history, a side business, etc. It was the divorce that got me here, I lost one income and I was paying out 5500.00 a month. Scores now tu684/ex637/eq614. Corrected my report all I can. Waiting for discharge so balances will disappear, then I will add my vehicle that was purchased nov 06 just before filing to my credit reports (it was never reported due to filing I guess). Hopefully taking scores up a little more.
A family member just had a ch7 bk and everything IIB removed for 300.00 from his report by someone he knows, hopefully I will get lucky. I am waiting to see if it pops back up on his cr after the removal. Good luck to everyone of you feeling the stress of bk, hang in there.

[w1120]

UPDATE... Wife and I remarried...yes a second time and we purchased a new house. The loan was put in my name only however she is on the deed. New issue is that I received a call from a collection department on my wife in reference our old property's deficiency. Now I have to figure out what to do... 1 have her sign a quit claim deed removing her name from the house or 2 having her file bk. Just do not want judgement on our new house.. any ideas from anyone