Confused

[2muchinDebt]

I tried looking for this info but didn't find anythin..maybe someone can help.

1.Say we're in a Ch13 for 5 yrs. Dh gets a promotion and I find a job. We tell the laywer/trustee then what happens? Do we not see any of that extra income and if not does that mean creditors get more of it?

2. Should we need a new car in those 5 yrs can we get one? Or do we have to go through the Trustee?


Technically, we should be able to qualify for a Ch7. Although we go over the income limit by $2500, I did an online means test and we are in the hole by $1000/mo. We are current on mortage and Heloc..let the credit cards go. The snag comes in with the house. We have 4 yrs left on an ARM. We don't want to let the house go. So in 4 yrs the loan will reset. Maybe we'd be in a better position to refi then..DH making more $$ and me having a FT job, but that's an "IF case scenario. No one knows what the economy will be like in 4 yrs.)

BK attorney said we should wait for the BK judge law to where BK judges can rewrite mortgages into fixed ones at the house's current value. He said we should stop paying the HELOC. He said it'll probably be late Feb. or sometime in March that we file. And we'd probably do a 5 yr repayment.

The problem with that is getting a car during that repayment period, or what if something on our home need repair, or there's an illness, or something like that?

[BigJohn]

You might want to look into buying a new car. What repairs might you need to your home? Do you have credit now to get those repairs done?

1. As for extra income, that seems to be handled differently from trustee to trustee. Your lawyer should be able to answer that question accurately.

2. If you need a new car, that needs trustee aproval I believe.

[Trixie007]

The problem with that is getting a car during that repayment period, or what if something on our home need repair, or there's an illness, or something like that?

From what I've read in these forums, you should 1) try to ensure that your vehicles will make it through the 60 mos, even if it means getting a new one, 2) have a home repair amount in your Ch 13 budget, and 3) have money for out of pocket medical care in your Ch 13 budget.

[liz417]

I tried looking for this info but didn't find anythin..maybe someone can help.

1.Say we're in a Ch13 for 5 yrs. Dh gets a promotion and I find a job. We tell the laywer/trustee then what happens? Do we not see any of that extra income and if not does that mean creditors get more of it?Yes, if your income increases, so does your repayment plan (most likely).

2. Should we need a new car in those 5 yrs can we get one? Or do we have to go through the Trustee?You will need your Trustee's approval. It would be wise to get a new/good used vehicle going into a ch 13to last the duration of the repayment plan


Technically, we should be able to qualify for a Ch7. Although we go over the income limit by $2500, I did an online means test and we are in the hole by $1000/mo. We are current on mortage and Heloc..let the credit cards go. The snag comes in with the house. We have 4 yrs left on an ARM. We don't want to let the house go. So in 4 yrs the loan will reset. Maybe we'd be in a better position to refi then..DH making more $$ and me having a FT job, but that's an "IF case scenario. No one knows what the economy will be like in 4 yrs.) Why is your attorney pushing you into a ch 13? Did you consult with several different BK attorneys? I read where people are 25k-50k over the median and they still qualified for a ch 7. It all depends on your expenses. I would try to do a ch 7 if at all possible.

BK attorney said we should wait for the BK judge law to where BK judges can rewrite mortgages into fixed ones at the house's current value. He said we should stop paying the HELOC. He said it'll probably be late Feb. or sometime in March that we file. And we'd probably do a 5 yr repayment. Why wait? Laws take forever to go into effect.

The problem with that is getting a car during that repayment period, or what if something on our home need repair, or there's an illness, or something like that? If you are in a repayment plan, then you have to cut back on something else for that month. That is why it is VERY important to have an attorney that can write a good repayment plan that allows a little wiggle room in your budget.

Good Luck!

[struggling09]

Hello. We are in the same situation. We have retained an attorney and are in the process of filing with in 30-45 days. During the first meeting she ran some quick numbers and said we fall in Chapter 13; however, after we did the means test online we didn't have any disposable income and were actually negative. We were informed once the BK attorney officially types the petition they will inform us if we are 7 or 13. (CRAZY!!!)

We too have a 1st mortgage and a HELOC as a second mortgage. Our sencond is due to reset in 2.5 years. I just emailed attorney today on advice regarding this. I haven't heard anything back yet.

I'm nervous that if we do fall under 13 and in two years when the rate resets, we won't have enough money to pay for it. What will happen to us then? Can we convert to a 7?

[ska]

We too have a 1st mortgage and a HELOC as a second mortgage. Our sencond is due to reset in 2.5 years. I just emailed attorney today on advice regarding this. I haven't heard anything back yet.

I'm nervous that if we do fall under 13 and in two years when the rate resets, we won't have enough money to pay for it. What will happen to us then? Can we convert to a 7?

We are in the same situation with our mortgage and have had the same fears about the loan skyrocketing. Our HELOC is interest only at the moment and the APR is adjustable. We will have to start repaying the principle portion in 2 years. My attorney says that she will use a projected APR, where she got this, I'm not sure. Well, the projected APR is 6% and this is more than what it is now, so who knows.

I believe that if the loan goes up, you can ask the Trustee to review your payment plan.

[struggling09]

SKA - I'm not sure where the attorney pulled those figures from for you; however Wachovia told me, if I wanted to lock my rate today at a fixed rate paying principal and interest the interest rate is 10.5%. I too am paying an iterest only heloc that will adjust in 2.5 years. If I were able to lock in today my payment would jump $546.

Something needs to be done to address this in the bankruptcy.

[liz417]

RE: Struggling09 and SKA:

Do you guys have any equity in your homes? If not, have you looked into "stripping the 2nd" loan? I sorry, I don't know much about it, do a search on this forum, because it comes up a lot in these posts.

Good Luck!

EDIT: There's a "sticky" at the top of this forum about lein stripping.

[ska]

SKA - I'm not sure where the attorney pulled those figures from for you; however Wachovia told me, if I wanted to lock my rate today at a fixed rate paying principal and interest the interest rate is 10.5%. I too am paying an iterest only heloc that will adjust in 2.5 years. If I were able to lock in today my payment would jump $546.

Something needs to be done to address this in the bankruptcy.

If you locked this in do you think it would get you closer to a chapter 7? I feel like calling my mortgage company to see if they would lock something in, it could make qualifying for chapter 7 a lot easier.

Have you met with an attorney to discuss your expenses? My attorney keeps picking my brain to find more. I really think I underestimate my expenses and it may be why my former budgets never worked.