House payments in 13

[larryg]

Hi,
Has anyone had their house payment go up after filing ch 13? I am not behind on my payment and want to pay outside the plan. I have a fixed rate so I'm only worried about the bank adding fees or trying to charge me pmi on my mortgage. Has anyone else run into a problem with this? Is it common practice?
Thanks

[justbroke]

If you have a fixed rate mortgage, have no arrearages, have no escrow changes (due to increased property tax or insurance rates), and have no interest only rider... I don't see your mortgage payment changing.

[Nicki8875]

Just broke...why does it say you pay $5380 per month? Everything I have read says between $100-$200.

[justbroke]

Just broke...why does it say you pay $5380 per month? Everything I have read says between $100-$200.

A Chapter 13 Plan payment is individually determined. Anyone that tells you that it's between $100 and $200 without having looked at all your financial data, is just wrong.

It's a complex formula based on something called the Means Test and the Determination of Currently Monthly Income. All of that is used to determine your Disposable Monthly Income or DMI.

Your DMI is based on your income less your allowed expenses, so it varies by individual.

While my payment to the Trustee is $5,380/month my disposable monthly income is really only about $10.00/month. The rest are fees for the Trustee as well as my mortgage, car, and tax payments.

[larryg]

Back to my question... Is it normal for the homeowners insurance to go up when you file ch 13? What about car insurance?
Nicki...You need to do a lot more reading and talk with an attorney. My pament will be in the $600 range but there are a lot of people on here paying over $1000. So you want to check things out more before filing.

[justbroke]

Back to my question... Is it normal for the homeowners insurance to go up when you file ch 13? What about car insurance?

It is possible for these costs to go up.

Most insurers use an "insurance" score (like your FICO credit score), to determine your rates. However, the insurance scoring models usually concentrate MORE on available credit and percentage of credit being used. If you filed BK and discharge all that debt, then your insurance score will probably stay the same or actually go up!

There are so many factors in an insurance or credit score, that I won't try to tell you exactly what makes one person score higher than the other. I will say that it is possible for your insurance to go up.

My homeowner's insurance rate and auto rate actually went down after filing. Go figure!

[Flamingo]

Back to my question... Is it normal for the homeowners insurance to go up when you file ch 13? What about car insurance?
Nicki...You need to do a lot more reading and talk with an attorney. My pament will be in the $600 range but there are a lot of people on here paying over $1000. So you want to check things out more before filing.

Both our homeowners and car insurance rates did not increase very much during our Plan years (small increases each year of like $30 or less). We have been with our insurer since 1985 with very few claims. If your rates do a big jump, it is because your insurer has probably checked your credit reports and upped your insurance due to your credit rating. Some states still allow this practice (contact your State Department of Insurance to see if your state allows the practice). If it does not and your rates are increased due to your BK, contact the DOI to report the situation. If your state allows the practice, there is nothing you can do except try to obtain cheaper insurance if possibe..

[roscoe1]

My homeowners and Car Insurance both went up after I filed. Also my taxes have increased over the last 5 years so that upped my mort payment too. When I filed it was 786 a month. Now its 890.

[MJJ3767]

If your state allows the practice, there is nothing you can do except try to obtain cheaper insurance if possibe..

Not possible. I filed in Chapter 7 in 2002. Fortunately I had been with the same insurance company since 1989. Last year (and before I filed Chapter13), I checked around for lower rates because my 18 year old twins (boys!) were making my insurance skyrocket. No other companies would take me because of the Chapter 7 on record but they would take my boys. I pay their insurance and all their expenses yet I was able to get them on their own policy and pay $400 less a month. Go figure!

[larryg]

Thanks for all the replies.