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New & filing Chapter 13 need advice

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    New & filing Chapter 13 need advice

    Married income $106k
    Mortgage $1650 balance $212k We have about $160k in NEGATIVE equity
    2nd Mortgage $450 balance $54k <---Is this considered unsecure?
    My car $633 balance on loan $28k
    Hubby $498 balance on loan $26K
    unsecured debt 40,000
    debt in father in laws name $14k
    3 kids

    I have a few questions I hope some of you can help with on your experience

    We were told we couldn't file a 7 because of our income, hubby is outside sales in construction and he is on contract for another 2 months (more then likely it will be renewed) All of his work expenses are all paid out of our pocket. His job gives him a salary and we pay everything for his job, miles, lunches, gas etc. any vehicle expenses and any other supplies he may need.
    Can that amount be added into our monthly expenses in order to keep his job?

    We also have a young son who has autism and now needs extra tutoring and help outside of the school district we looked into the tutoring and this is about $35-40 per hour. We have not yet used the tutoring because we just found out he needed it and we cannot qualify for any help because of our income and on the same note we have so much debt and cannot afford to get one for him.
    Can that be added in for our expenses?


    We don't want to keep our house and the vehicles are uncertain, I owe $28k on mine and hubbys is $26k, can we keep one of the vehicles and see if we can get the credit union to give us fair market value on it?
    And is there a limit on what you can have in vehicles under the plan?
    Last edited by vegasgirl702; 10-07-2008, 08:58 AM. Reason: to add the neg. equity

    #2
    How much is your house worth? If you have negative equity then your second mortgage becomes unsecured, and can be lumped with the rest of your unsecured debt.

    Also, you cannot include the debt in your FIL's name in your filing.
    Disclaimer: Young, NOT Dumb.(._.) The plan: $480 monthly for 60 months at 100%. 07/12/08
    Motion to Discharge: FILED!! 08/07/13
    60 down/0 to go \m/(*.*)\m/ 100% complete!

    Comment


      #3
      Thanks for your response, we have no equity in our house. I think our house is worth about 120,000 that is what the two houses on our block went for.

      Can the debt in my FIL's name be included as a debtor so that it doesn't look like we have an additional $250.00 per month floating around it is actually going to payback that loan?


      Originally posted by NowImDownInIt View Post
      How much is your house worth? If you have negative equity then your second mortgage becomes unsecured, and can be lumped with the rest of your unsecured debt.

      Also, you cannot include the debt in your FIL's name in your filing.

      Comment


        #4
        no unfortunately it's in your FIL name, the courts don't consider it your debt.

        does your husband get paid on a 1099? If so your gross income should be your schedule C income after all expenses.

        You can still claim business deductions on a W-2 it's just not has much.
        I would claim all the deductions for the BK court that you claim on your 1040's.

        Comment


          #5
          ACTUALLY, you can put your FIL as a creditor, but he'd be paid through the plan as just another unsecured debtor... You won't be able to budget that. It would be like preferential payment, or insider, or something like that.
          Disclaimer: Young, NOT Dumb.(._.) The plan: $480 monthly for 60 months at 100%. 07/12/08
          Motion to Discharge: FILED!! 08/07/13
          60 down/0 to go \m/(*.*)\m/ 100% complete!

          Comment


            #6
            So do you owe more on your house (with just the first mortgage) than it's worth?
            Disclaimer: Young, NOT Dumb.(._.) The plan: $480 monthly for 60 months at 100%. 07/12/08
            Motion to Discharge: FILED!! 08/07/13
            60 down/0 to go \m/(*.*)\m/ 100% complete!

            Comment


              #7
              Yes our first has a balance of $212K and its worth around $120k



              Originally posted by NowImDownInIt View Post
              So do you owe more on your house (with just the first mortgage) than it's worth?

              Comment

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