The waiting game...

[brokebutcute]

We have turned in all of our paperwork in order to file Ch 13. Our attorney has told us that since we are surrendering our home (upside down $100K) that he will wait to file until the day before the foreclosure sale. Is this normal? In the meantime, we are not paying cc's ($127K unsecured), paying our car payment and household bills only. He keeps saying that maybe he can get us into a Ch 7 if our expenses give us a negative DMI. We make $130K a year but this year our employer gave us a $24K moving bonus. Does that get totaled into our monthly income? We will not ever have that kind of bonus again and I'm afraid that because of it our average income is way higher than it really is.

Also, will they use our monthly mortgage payments or our rent payments in our allowed expenses? I know that we are allowed more if we use the mortgage but we have both.

Thanks for all of the help! I love this forum!

[sassiebaz]

You may need another attorney....

[Ifonly]

Does your lawyer know when your home is going to foreclose? If you read thru posts here, you'll know that foreclosures can take months. Plus, what would his purpose be in waiting? I don't see any benefit.

We filed CH13 and surrendered our home and there was no talk of even when a foreclosure may take place. You need the protection of the CH13 for everything else, IMO.

In our case, they used the rent expense in our expenses as we found a new home to rent before we filed the CH13.

[Ifonly]

Oh, and I don't see how you could get into a CH7 making $130K annually. Granted I'm not a lawyer but making that much money should most certainly leave you DMI.

[lrprn]

We have turned in all of our paperwork in order to file Ch 13. Our attorney has told us that since we are surrendering our home (upside down $100K) that he will wait to file until the day before the foreclosure sale. Is this normal?

No, this isn't the norm. Why did your lawyer tell you he wanted to do that?

We make $130K a year but this year our employer gave us a $24K moving bonus. Does that get totaled into our monthly income?

Did the $24K come as a part of the regular paycheck? Or did it come as a separate check specified to be using solely for moving?

Chances are very good that this moving bonus will be counted as income. This may be the reason that your lawyer wants to wait for your house to foreclose hoping that six months will pass so the bonus won't be counted as income. You'll have to confirm that with your lawyer.

Also, will they use our monthly mortgage payments or our rent payments in our allowed expenses? I know that we are allowed more if we use the mortgage but we have both.

Since you are surrendering the house, depending on the bk district you live in, it's very likely that you can use only your rent payment. This will be a question for your lawyer.