Behind on Mortgage..Ch13?

[Way Behind]

Hi,

Received foreclosure notice yesterday. Had been contemplating bk for several months as a garnishment has left me unable to stay current on mortgage payments.

My question is..Is ch 13 the only way to keep the house since Im behind on payments and cant catch up before foreclosure? (Im in Florida). Do you have to be current in order to file ch 7 and keep house?

How much is generally required as repayment over the 5 years? Is it just the total of your debt divided by 60 months? Because I would not be able to afford that.

Thanks.

[CindyLou]

You do need to be up to date to keep a house in a chapter 7. As far as the payments go in a 13, your payment will be the total of all your disposable income (in other words, all of your income left over after your allowed expenses)....maybe someone can chime in here with a link that explains it a little better....

[lrprn]

My question is..Is ch 13 the only way to keep the house since Im behind on payments and cant catch up before foreclosure? (Im in Florida). Do you have to be current in order to file ch 7 and keep house?

Yes.

How much is generally required as repayment over the 5 years? Is it just the total of your debt divided by 60 months? Because I would not be able to afford that.

Unfortunately it's not nearly as simple as that.

Calculating the Ch 13 payment is a complex, complicated cross-comparison of your income, your expenses, your exemptions, and how many of your creditors eventually file claims to be repaid. There's no easy way to say ahead of time what your monthly payment might be.

Although it's very hard to think about, from what information you've given us it seems you might be overextended on your home and that's why you are struggling so hard to keep up with the payments. If you qualify for Ch 7, have you considered filing Ch 7 and letting the house go, then rent and save for 2-3 years so you'll be ready to head back out into the housing market at that time?

Sometimes we get so tied up emotionally with a home, a car, or other items it's hard to remember that they are just things and not what is really important in the long run. Just something to think over....