The following is the text of an email I sent to my attorney, I was hoping some of you might be able to help me through this decision. Thanks in advance---------------------------->
Sorry for the delay, I am still trying to determine how to proceed. I have not met with any other attorneys since I think I have a decent grasp on how this will shake out and how much I will end up paying. My wife and I are in agreement that we need to do this and I believe going forward with the lien strip in also a prudent course of action. However, we have a few questions, the answers to which we will need to get comfortable with prior to filing.
As I stated during our initial meeting, my son will start college next Fall. We have decided that he will spend one or two years at a community college to keep expenses as reasonable as possible. Will our filing affect our ability to pay for college? Is there any way to amend or take into consideration those expenses?
Since I don't plan on being in this situation forever and I am relatively sure that given enough time my pay should increase; I would like to know what will happen under a couple of scenarios. First, I believe at some point my employer will reinstate our incentive (bonus) compensation. If this happens how will it affect the plan? I don't mind prepaying it or getting done early, I just wonder if the trustee can change or even dismiss my case if I receieved a bonus. I would imagine there is a good chance this will be reinstated for 2011. Secondly, if I receive a raise or promotion, which results in a pay increase can the trustee dismiss my case or force me to change it? I am very concerned how a dismissal would affect the lien strip.
My car lease is up on February 28, 2010. I have a couple of concerns related to this. First, I don't want to have to go through amending the plan in February to get a car, and I need a reliable car for work, I drive a lot. Secondly, I am way over my lease mileage, so I am also concerned about being hit with that at lease bturn in and already being in bankruptcy, I won't have the money to pay it. Am I better off finding something now, and if I do I will probably need a co-signor since my credit is now toast. Can this even work? My thought is to do this first and then reaffirm after filing, but I don't want to do anything wrong. I am also not looking to spend anything outrageous.
If I am 30 days past due on my 1st mortgage and I file for bankruptcy can my lender declare a default and accelerate the debt? Can they choose to foreclose after the stay is lifted for secured creditors since I am past due? My concern is that I have a pretty good loan on my first and I am almost 10 years into it, I would hate to have this filing jeopardize my home. My understanding is that the first mortgage lender must allow me to continue making the payments and put the arrearages into the plan, but I am unable to determine if this is an automatic or not.
As I have been going through my spending during the last couple of months I have been putting a budget together. Also, in my attempt to pay as much as possible to my creditors each month I have not had enough taken out of my pay for federal and state income taxes. As such, I need to adjust that. My plan attached shows what my net income should be based on the proper state and federal exemption levels. When I consider the fact that a lien strip will elliminate the interest deduction for that debt my exemptions are out of line.
Related to the question above about my income, if I am in a position to accelerate payments or make one-time payments is this allowed? Could it cause any creditors to try and get the case dismissed? Or do you typically just tell your clients to keep the money unless the trustee specifically asks for it.
I appreciate your time and I will make a decision about when to do this soon. I just want to be certain I am moving forward in a prudent manner.
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