2nd strip

[bkstuff]

Can someone answer this for me?
If we file Ch13 we would be stripping our 2nd mortgage. From my research I understood that we would still be paying the same % to that 2nd mortgage holder during the plan (same as all other non-secured). However, the attorney had said that we would not pay if it was stripped. Does someone know for sure how this works?

[momofthree]

He's right in that you wouldn't pay it as a secured creditor, it goes into the pot with all the other unsecured debt and will be paid at the same percentage as your unsecureds. So, you're both right. Depending on your circumstances and the way that your plan is set up, they might not get any money at all. We are currently in a 0% payback to unsecured creditors.

[SMinGA]

Your attorney should know your income, expenses, and have a pretty good idea of how much you'll pay per month into a plan. And how much of that - if any - will be left for unsecured debts after secured/priority. If very little, then the attorney is correct that you would not be paying the 2nd. Or at least, not enough of it to be significant.

Such as if your priority debts total $30,000 and you're paying $1,000 per month x 36 months with a 10% trustee fee: only $2,400 would remain for unsecured. That would be divided among all unsecured who file claims.

[bkstuff]

Ok- got it, thanks.