Screwed again

[spazzman]

I have a problem. Somehow even after filing chapter 13 back in October, I'm still 170.00 per month in the hole. My mortgage company agreed on arearages going into the plan. Now they have raised my mortgage up to 1442.00 per month. My attorney said that they won't ammend my payment because they've already done a cram-down. So now what??? Now I have to convert to a 7? That's B.S. excuse my french! How to I go and try to do the right thing by paying some debt back. The only reason was to keep my house which ultimatley I'll end up losing anyway! Some racket! I'm in the wrong business!! Any advice would be appreciated in this matter.

[keepmine]

It's alwys a mistake to file a 13 to try and keep something you can't afford.
Do yourself a favor and convert to a 7 and start life fresh.
Forget about "trying to do the right thing". BK is a business decision. You better forget everybody else and take of yourself or, you'll end up as financial roadkill.

[CATCHMEIFYOUCAN]

Convert !

I have a problem. Somehow even after filing chapter 13 back in October, I'm still 170.00 per month in the hole. My mortgage company agreed on arearages going into the plan. Now they have raised my mortgage up to 1442.00 per month. My attorney said that they won't ammend my payment because they've already done a cram-down. So now what??? Now I have to convert to a 7? That's B.S. excuse my french! How to I go and try to do the right thing by paying some debt back. The only reason was to keep my house which ultimatley I'll end up losing anyway! Some racket! I'm in the wrong business!! Any advice would be appreciated in this matter.

Sorry if you might end up loosing your house, maybe its for the best in the long run! Wouldn't you rather convert and pay nothing here-ever-after!??? Get that fresh start! I heard the housing market just sucks, and peoples mortgages are going up up up, in the end the dream just ain't worth it. When I was in Ch13, I saw the next 5 years of paying $800 a month. My lawyer said all I had to do was quit one job, convert to Ch7 and owe nothing, just try and live at least 2 months with less income! 2 months seem less of a hell than 5 years! (During those 2 months I actually picked up some great overtime from the job I kept and enjoyed every pennie of the extra income!)

Best Wishes, CMIYC

[coma]

I'm sort of in the same boat. We converted from a 7 to a 13 to keep a car and I finally came to terms with the fact that I cannot afford it...and now I cant convert back. keepmine is right...let it go and start over if you can.

[BassBoy]

Fork in the road

Just an FYI folks, spazzman is my best friend (of 23 years) and I invited him here some time ago. Anyways, there is good reason why spazzman wanted to keep his home.........its a newly built home. With a brand new house, and saving for years prior to buy/build a home, its hard to just give it up so easily. This is why Spazzman chose Ch.13.

But anyways............

I would have to agree with all of you that it may not be worth it to try and keep something you can no longer afford. It isn't worth killing yourself over. On the other hand, I can agree that giving up something that you worked hard for (and is brand new) is not an easy choice because being to able to have the luxury of a brand new home in the near future is one of those "It will never be possible" scenarios.

IMO, being in a Ch.13 can backfire if you have a reduction of income or in spazzman's case, an increase in mortgage payments, and like spazzman, the plan is already crammed down so there is no way to amend the payment plan and the filer may not be able to stay in a Ch.13 and be forced to convert to a Ch.7.

[aa06a47]

Just an FYI folks, spazzman is my best friend (of 23 years) and I invited him here some time ago. Anyways, there is good reason why spazzman wanted to keep his home.........its a newly built home. With a brand new house, and saving for years prior to buy/build a home, its hard to just give it up so easily. This is why Spazzman chose Ch.13.

But anyways............

I would have to agree with all of you that it may not be worth it to try and keep something you can no longer afford. It isn't worth killing yourself over. On the other hand, I can agree that giving up something that you worked hard for (and is brand new) is not an easy choice because being to able to have the luxury of a brand new home in the near future is one of those "It will never be possible" scenarios.

IMO, being in a Ch.13 can backfire if you have a reduction of income or in spazzman's case, an increase in mortgage payments, and like spazzman, the plan is already crammed down so there is no way to amend the payment plan and the filer may not be able to stay in a Ch.13 and be forced to convert to a Ch.7.

May I ask what % is being paid to unsecured creditors? If circumstances change, I am not sure why the payment cannot be reduced unless the entire payment was going to pay the secured arrears?

[BassBoy]

May I ask what % is being paid to unsecured creditors? If circumstances change, I am not sure why the payment cannot be reduced unless the entire payment was going to pay the secured arrears?

From my understanding, spazzman's plan is crammed down as far as it can......so........I would assume that unsecured creditors are getting very little, if any at all. Also, when spazzman's mortgage payment went up, the attorney said his plan could not be amended because of the maximum cram down. From this, I would assume that if the payment was any lower, then secured creditors would not get 100% payback. Am I correct when I assume that if secured crditors can not receive a 100% payback, then a Ch.13 is not possible?

[jal1129]

I can understand giving up the dream. We saved for years and after much careful consideration finally built our dream house. It did'nt take us too many years to realize we could'nt afford it. After maxing out all of our cc, we finally came to the painful decision to sell the house and took a HUGE loss on it just to get out from under it. We struggled along for a couple more years trying to deal with the debt load and now have filed 7.

We now live in a rental house that is much, much smaller and much, much less expensive then what we had. In fact we even moved from a major metropolitan area to a VERY small farming community in another state to have lower living expenses. We know that short of winning the lottery we will never have a house even close to that one again, there are'nt even any houses comparable to what we had in this area. But its okay, there is a certain freedom in not being in mortgage prison. We can now look back and say the biggest financial mistake we made was building that house.