Would I qualify for a 13?

[optimistic1]

A Ch.7 will definetely provide you with some relief, the trustee might object to the mortgage payment being so high in relation to your income if you tried to do a Ch.13 If you are having to sacrifice to much in your living expenses to fund a 13, then a 7 is the way to go. You should have no problems getting a discharge and getting some relief.

2 years after your Ch.7 discharge and foreclosure, or deed in lieu, you will be able to qualify for a new home loan, but only try for a FHA 30 year fixed, your credit will need to be re-established, but that will require minimal effort, and you will need to save for a down payment/closing costs.

[myhearts07]

thanks OPT1. gotta let it go... so hard though...

hearts

[BigJohn]

I believe the $1400 came from if you took my suggestions. Because you tithe, that brings it down to $900.00. Remove the van and you are near $600.00.

[myhearts07]

Adequacy of Funding Report

Date: 2/27/2009

You have proposed a Plan that offer the following Plan payments to the Trustee over months.

Months 1 through 36 you will contribute 600 per month for a total of $21,600.00.


Number of Months: 36 Total of Plan Payments: $21,600.00


From these monies, you have proposed payments to creditors as follows


Order Payment Purpose Principal Payments Interest Payments Total Payments Month Paid In Full
Trustee Fee $2,160.00 $2,160.00
Totals: $2,160.00 $0.00 $2,160.00



Your proposed Plan is Adequately Funded.



This is the response from the fundwizard. Doesn't include any unsecured debt at this time, just dmi. Is this acceptable and should i run this by the attorney? Thanks BJ for all of your help.

Hearts

[optimistic1]

I would, if the numbers are correct that you proposed, you would be able to fund the plan. It doesnt look as though you calculated in the remaining attorneys fees, which, may or may not be in the plan depending on how much you pay them.

Also, you are propsing only a 36 month plan, if your income is over the median, your plan length must be 60 months. This means that you could increase your expenses and make a smaller plan payment to fund the plan, you will have to play with the numbers.

How many attorneys did you see?

[myhearts07]

I only saw one attorney. He seemed to just be pushing a 7 but I don't really want to not pay our creditors something and I know that we could do that $600 every month. So, I will go back into fundwizard and change the terms to 60. I didn't even know about the cramdown on the van, that would be wonderful if I could get a $70 payment. Once, I do that and write out the rest of the bills (monthly) and include the mortgage payment as well I will really know where we are... I will write back when I have it all down and post what I came up with. I must have been crazy when I put down $400 for presents.. Stress I guess...

[optimistic1]

To calculate your van payment, you need to first, go to kelly blue book dot com, and enter in all of the data, and then determine what the private party value is, at either good or fair condition. That will be your crammed down amount to pay back, and in the funding wizard, you need to add in about 7% interest give or take a percent, then lender still makes money on interest. Then you deduct that normal monthly payment from your overall budget.


You need to see more than one attorney, and if you are dead set on keeping your house, and are willing to attempt a Chapter 13, then you need to tell this to your attorneys that you meet.

Of course they want to do a Ch.7, its very easy for them to process a Ch.7, I had several do the same to me, I had to fire one of them because of it.

Find one that will look over all of your paperwork, make sure your print out your expenses, and try and calculate your household monthly income accurately. Then, after you have entered everything into the funding wizard, based on what your disposable income is, and it says it is adequately funded, print it out and bring it in.

[myhearts07]

Hey All, I put in $600 for the payment monthly for the 13. I put in some unsecured debt and saw that the trustee would get $3600 over the life of the BK. Is this normal? It also stated that it would be adequately funded but then had the following :








Adequacy of Funding Report

Date: 2/27/2009

You have proposed a Plan that offer the following Plan payments to the Trustee over months.

Months 1 through 60 you will contribute 600 per month for a total of $36,000.00.


Number of Months: 60 Total of Plan Payments: $36,000.00


From these monies, you have proposed payments to creditors as follows


Order Payment Purpose Principal Payments Interest Payments Total Payments Month Paid In Full
1 Arrears $100.00 $0.00 $100.00 1
2 Chase Bank $50.00 $0.00 $50.00 1
3 Wamu $25.00 $0.00 $25.00 2
4 Capital One (all) $50.00 $0.00 $50.00 2
5 Beneficial $50.00 $0.00 $50.00 3
6 Amex $25.00 $0.00 $25.00 3
7 Discover $25.00 $0.00 $25.00 4
8 Global Network $10.00 $0.00 $10.00 4
9 Numark $70.00 $0.00 $70.00 5
10 First Premier $20.00 $0.00 $20.00 60
Trustee Fee $3,600.00 $3,600.00
Totals: $4,025.00 $0.00 $4,025.00



Your proposed Plan is Adequately Funded.
Your general unsecured creditors will receive $10.00 or 100% (What does this mean? Should I have only put in $10 to each creditor to make it stretch or all of them? Would this be a 100% payback plan? I am confused. Thanks

Hearts

[optimistic1]

Only put in secured claims into the funding wizard. The unsecured come last, and at this point dont worry about them, only put in the arrears, and your van kbb private party value at 7% interest, and any remaining attorney fees.

The funding wizard, will automatically add in 10% for trustee fees, that is the maximum allowable, but based on your particular court, it will vary, and most likely be lower than 10%. You can manually make the correction to the final calculation.

[myhearts07]

So just put in the mortgage payment, the arrears, the van payment ppv ($7800) and 7% interest, right? Attorney wants to be paid all his fees upfront before he even files. We owe him $1300...

When entering the mtg. payment, should I put in my current interest rate at all? The arrears are $20K. What should i put there?

Hearts

[myhearts07]

Didn't put in the house payment because that is paid outside of Chapter 13, right? My 19 year-old works part-time and goes to college. Do I need to include her income? about $800. Our exemptions for expenses were $5823.00, family size is 5 and monthly income is $8550 with youngest daughter's income and 7750 without it. Median income for IL family of 5 is $7090, so we are over the median. What do we do about that? Based on the $600, there will be no extra for unsecured debt. What happens with that? Will we get sued? Here is the fundwizard result for the van (ppv) and the 20K in arrears.

You have proposed a Plan that offer the following Plan payments to the Trustee over months.

Months 1 through 60 you will contribute 600 per month for a total of $36,000.00.


Number of Months: 60 Total of Plan Payments: $36,000.00


From these monies, you have proposed payments to creditors as follows


Order Payment Purpose Principal Payments Interest Payments Total Payments Month Paid In Full
1 $7,800.00 $2,212.30 $10,012.30 56
0 $20,000.00 $0.00 $20,000.00 38
Trustee Fee $3,600.00 $3,600.00
Totals: $31,400.00 $2,212.30 $33,612.30

Budget was $36K for 60 months. Total came to $33612.30, should I add some unsecured to this so that I can get all $36K spent?



Your proposed Plan is Adequately Funded.

[optimistic1]

No, and this is all very pre-liminary, dont set yourself in stone on these results until a reputable attorney can look at your entire case line by line, to make sure that you have the numbers right.

What that basically means is you do have enough to fund the plan, the remainder of the 36k, will go to the unsecured creditor claims. They have to put in a claim when you file a BK, you dont need to put those in the funding wizard. Depending upon your district, the unsecured creditors will basically receive nothing, you wont be sued, and at the end of your 60 month plan, you will be discharged of those debts accordingly, your arrears will be paid, the van will be paid off and you will have the title.

The quote you gave me on your attorney fees, are for a Ch.7, not a Ch.13, 13's are more expensive, so it depends, you might be adding some into the plan, or not, just depends on the attorney preferences.

Im not sure about adding in a interest rate for the arrears, they already charged you the interest, so I dont see how they could get even more out of it, I personally have not had any experience with it, so don't quote me.

Under this scenario you have come up with, you are receiving the best of both worlds of chapter 13 and chapter 7, you are being able to catch up on mortgage payments, cramming down the value of the vehicle, and you are also possibly going to be discharged of all the unsecured debt.

You need to keep in mind, that under a Chapter 13, if you have non-exempt property, the value of that property needs to be paid into the plan. You need to see what your state exemptions are for property and take a look at what you own, as this could easily jack your payment up.

[myhearts07]

Thanks again. I see that we would have about $2600 left over to distribute to unsecured debt and that would be it. I have printed out the info and will get it to my attorney asap because I know this is the better route for us. We would like to stay as long as we can so that we can sell when the economy turns around and hopefully get a profit to move into something more affordable and smaller. Will the trustee take our tax returns as well and apply them towards the 13?

[optimistic1]

Tax returns and tax refunds commonly are mis-stated. Yes the trustee will want to have your tax return, to see if you are making alot more money than originally set up in your schedules. Tax refunds, are trustee specific, some want them, some dont, some do only if they are over a certain amount. This is why, when you hire a attorney, you need to hire a reputable attorney that is familiar with the trustee, bk court, judges, etc.


Do you own lots of possessions, like luxury items, boats, atv's, lots of jewelery, sporting goods, baseball cards, antiques? If you do, and they exceed the state exemption for property, then you would need to disclose these items, and determine the value, and when you add up everything that is non-exempt, that also needs to be paid into the plan.

[myhearts07]

No, been broke a long time and only buy cosmetic jewelry. We have a plasma tv and that is probably the most expensive thing we own right now. It was $900. Since we are over on the median income, would that exclude us from filing a 13?

Hearts