I hope someone has some input that will be helpful!!
We are in California, and are well over the median income. Median is 86,871; ours is about $160,000 (not counting rental income; with rental income it is 186,400.
Our main reason for filing ch 13 I guess would be to 'cram down' one of our rental properties that we owe 300,000 on the first mortgage, and is worth about 160,000.
We also have 2 seconds at 80,000 each that are both unsecured in that the homes are worth far less than what we owe.
We owe 420,000 on our first on our primary residence that is valued at 300,000. We have one rental that is about even.
Our consumer debt is: credit cards, about 30,000; car loan about 17,000; student loans about 46,000. The attorney said that the 160,000 second mortgages would be added to the 'unsecured debt' pile, that the student loans cannot be discharged but would be part of the payment plan. That's a total of 253,000 if the car is included (not sure if it will be or not). If you divide that y 60 it's about 4200/mo which is about what I come up with when I do the means test using the IRS guidelines.
We are able to make payments, but all of our mortgages are interest only and will begin adjusting in February. At that point, we have no idea what payemnts will be and they won't tell us.
We want to get out of debt. We want to either get rid of the rental or have the value crammed down. We're not sure whether we should file or not.
We talked to an attorney, who said we would almost certainly be a ch13, which we figured. It seems like when I do the means test we might be paying over $4000 a month... is that possible? Do they really expect you to live on the amounts that are 'allowed'? How much can the attorneys adjust that? Might we be better off negotiating with the banks ourselves (they won't even talk to as at the moment since we are current).
Should we hang on to the upside down houses and just negotiate with the lenders ourselves to try to get better loans and pay things off ourselves, thus having more control over hte monthly payment amount?
ALSO... I work full time but had recently taken on a part-time sporadic job to help pay off the credit cards. If I keep working that, that will count against me as far as the payments go right? Will all of that paycheck just be added to the repayment plan? It is very stressful to work an extra job and DO NOT want to be forced to do that for another 5 years. Should I stop working that job, which will close the opportunity for me?
I AM SO CONFUSED!!!
We are in California, and are well over the median income. Median is 86,871; ours is about $160,000 (not counting rental income; with rental income it is 186,400.
Our main reason for filing ch 13 I guess would be to 'cram down' one of our rental properties that we owe 300,000 on the first mortgage, and is worth about 160,000.
We also have 2 seconds at 80,000 each that are both unsecured in that the homes are worth far less than what we owe.
We owe 420,000 on our first on our primary residence that is valued at 300,000. We have one rental that is about even.
Our consumer debt is: credit cards, about 30,000; car loan about 17,000; student loans about 46,000. The attorney said that the 160,000 second mortgages would be added to the 'unsecured debt' pile, that the student loans cannot be discharged but would be part of the payment plan. That's a total of 253,000 if the car is included (not sure if it will be or not). If you divide that y 60 it's about 4200/mo which is about what I come up with when I do the means test using the IRS guidelines.
We are able to make payments, but all of our mortgages are interest only and will begin adjusting in February. At that point, we have no idea what payemnts will be and they won't tell us.
We want to get out of debt. We want to either get rid of the rental or have the value crammed down. We're not sure whether we should file or not.
We talked to an attorney, who said we would almost certainly be a ch13, which we figured. It seems like when I do the means test we might be paying over $4000 a month... is that possible? Do they really expect you to live on the amounts that are 'allowed'? How much can the attorneys adjust that? Might we be better off negotiating with the banks ourselves (they won't even talk to as at the moment since we are current).
Should we hang on to the upside down houses and just negotiate with the lenders ourselves to try to get better loans and pay things off ourselves, thus having more control over hte monthly payment amount?
ALSO... I work full time but had recently taken on a part-time sporadic job to help pay off the credit cards. If I keep working that, that will count against me as far as the payments go right? Will all of that paycheck just be added to the repayment plan? It is very stressful to work an extra job and DO NOT want to be forced to do that for another 5 years. Should I stop working that job, which will close the opportunity for me?
I AM SO CONFUSED!!!
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