New and ?'s

[14003]

I have so many QUESTIONS?

Here is my situation I want to file a Chapter 13 to lien strip my HELOC of $78000 my 1ST is upside down I owe 306000 homes that are identical to mine are selling for 240000 to 170000 so I'm confident on the upside down.

I'm late six months on my 1st just received pre-foreclosure notice October 2009 the reinstatement monies needed to bring current our 17500 I originally was going to take a hardship withdrawal from 401k which I did but have not cashed the check ,

I have done the means test and with the previous six months income don't have any disposable income but the income for the last six months, me and my wife had been out on disability now when I use our normal income figures we have enough disposable income to have an acceptable amount to fund a Chapter 13 plan I read there is possible zero percent plans also.

Summary of MEANS TEST DATA:
This data is with future income
Average monthly income is $7570
Expense deductions totaling $7321
leaving $249 per month for Plan and over 60 months repaying $14928

Debt Plan Totals $4108 including Trustee 10%

I have made a budget to see what this would do to us going forward which is not what were use to but we want to stay in our home.
$49296 per year for Debt payments
$2988 per year for Payment Plan
$26026 per year to live on




I'm going to list my questions below:

1. In the MEANS TEST I input income received from daughter of $575.00 per month she pays us for an auto in which we are the registered owners the auto loan is $326.00 Insurance is $84.00 then she is on are cell phone plan with her husband which is $90.00 the remaining $75.00 is for a wedding loan she pays us for which is from our HELOC, Will this be justifiable to a Trustee?

2. Back to the 401k disbursement I am now thinking of using it to pay back a 401k loan to free of $450 a month in are income in order to be able to survive the Plan will this be possible?


3. Have been to see two different attorneys and seeing a third one today we seem overwhelmed and with the first two we had two different ways they suggested and we really didn't know what to ask now we seem to be a little more understanding of what is going to happen

I just had to type all this to make me fill better I guess It has been stressful for us these past few months but I realize others are in worst positions then us and want to wish everyone who has to go through with these financial issues the best of luck

[walkthaplank]

Get thee to a few lawyers for consults and do it quickly. I would recommend that you check and see if you can return that check for the 401K hardship withdrawal and undo it, it may be too late. Withdrawing money from your 401k plan is going to compound your problems by adding tax problems to your money problems and it also turns an exempt asset into a non-exempt asset. It also means that you don't have that money for your retirement. These are all very bad things. You can keep repaying your 401k loan while you are in a CH13 plan.

If you file for BK you can cure your arrears in your CH13 plan and depending on your BK district you may be able to strip that HELOC loan if it is completely unsecured. Another thing you may want to consider, and it is a very difficult thing to consider, is walking away from your home. If your first is substantially underwater you may be better off renting for a few years while you rebuild your finances and then buy again in a better market. Real estate is going to be dropping for some time now.