Can't Make Mortgage Payments

[chzhd]

We're almost a year into our Chapter 13 100% payoff plan. Because of a few unexpected circumstances (medical bills, car repairs) and normal day to day expenses being more than anticipated, we're falling behind on our mortgage. We haven't missed any Ch 13 payments.

I took out a 401K withdrawal in December to get current, but already we're behind again. We paid about 2/3 of the January payment and we probably can't pay the rest until next week and then can't pay February's payment until next month sometime. We obviously can't afford the house.

I will be calling our attorney, but I want to have an idea of options. I want to ask if we can put the house up for sale. But, what happens if it doesn't sell? Can we foreclose? We have our main mortgage & a HELOC. I'm guessing if we could sell it, we could get what we owe from the sale. But, there are some homes in our sub that have been for sale for awhile that haven't sold.

I'm very stressed, we have NO money....I had to find coins/change to buy Tylenol for my daughter this morning. HELP ME!!!!

[forgotten]

There are one of 2 issues.
1) You aren't sticking with your budget
2) Your plan wasn't properly written to start with

Did you get trustee permission for thr 401k withdraw? If not, that is grounds for your case to be dismissed right there.

You need to go over your chapter 13 budget and see what is missing that is causing you keep running out of money and get the plan ammended to reflect those expenses. Your attorney needs to be aware you are behind in your mortgage payment ASAP and you need to work a plan of action.

Edit: If you are currently paying 100% to unsecured, there shouldn't be any need to loose the house, you just need your plan amended or find a way to stick with your current budget.

[oops123]

I agree with forgotten. See if you can make changes in the plan to make it a workable one.

That said, statistics show most Chapter 13 plans fail. In our bankruptcy class we were told most failed due to people hanging onto a house they could no longer afford. If getting different living arrangements will help you and your family, work it out with the attorney and the Trustee. Its just a house, you can make a HOME anywhere. The ongoing stress you are dealing with is a killer.

What you don't want is your case dismissed.

[chzhd]

Thanks. I definitely don't want it dismissed. We have a huge monthly payment to the trustee, I don't want that thrown away.

I checked with the attorney before I took the 401K withdrawal, he said there's no problem with it because we're on a 100% payback plan.

I care about the house, but not enough to stress myself to the point of making myself sick. We might have to move anyway in a year because of our jobs.

[chzhd]

I heard back from my attorney -- he said that as long as I make my trustee payments, we can either try to sell it & just get the trustee permission once we get a buyer, or let it foreclose. I think there aren't really any issues because we're on a 100% payback plan.