Help Understanding Chapter 13

[texasgal]

Could someone help me understand how Chapter 13 works? This is our situation:

1. Home Mortgage: $1342.20 (Behind 4 pymts and currently in a forebearance agreement with Wells Fargo. After three payment made on time a possible loan modification given.

2. Car Payments: Car loans for $526.00 and $255.00 and both are behind one payment and one lease payment $693.00 and two months behind. The $255.00 payment made by son, but loan in our name with a balance of only $2,500.00

3. Student Loans: $100.00 per month current and balance of $9,000.00

4. Boat Payment: $403.00 behind one payment

5. Personal Loan: $304.00 and current - balance of $6,200.00

6. Unsecured (mostly credit card) debt: $25,000.00 and includes accrued interest and fees.

7. Living expenses (utilities, groceries etc.) $1,500.00

I am the only person working; as my husband has been laid off and has not been able to get consistent full-time work and has only been able to work temp jobs. Our gross income if $65,000 per year. $821.00 is being deducted from my pay check each month for healthcare and I would like to keep this as my husband has health issues.

I have only spoken with one lawyer so far and he seems to think that this plan is workable. How could this be and still keep all our property?

Any insight would be most helpful!!

[falken]

I can tell you right now you aren't going to be keeping everything.

If you are behind on everything so obviously you don't have the income to support the things you have. The boat is a luxury (I assume you are not a fisherman or the boat is your livelihood) so that would be the first to go.
You are going to need to reject the lease on the $693 car, that payment is way too high.

What is left is mortgage, the other 2 cars, living expenses, and your medical expenses. Can you afford to pay all of that if you stop paying the above items? If so, then you may be able to create a workable chapter 13 plan.

You listed $6000/mo in expenses which is $72,000/year (not counting payments on unsecured debt). You only make $65k BEFORE taxes... not going to work, if you had a lawyer that said you could keep everything you need a find another one.

Good luck!

Edit: You can also surrender the other cars, or the home.. whatever will make it so you can afford what you need to live.

[dp0127]

Hi,

Boat is luxury like falken said, trustee will object to it if you dont let it go, the lease car too. So cut your expenses and maybe you could fit into a chapter 13 plan.