paying defiencey vs chapter 13

[bulldog]

Real quick I don't know if this question has been asked, sorry if it has.
I should have filed chpter 7 a long time ago, but now I am in a position where I make more money and I want pass a means test. I spoke to a lawyer and he said maybe a chapter 13 is the way to go. My house was sold in foreclosure and left a defiency of $40k and my car was recenltly reposessed.
I was applying payments to catch my car up but they came and got it before I could get it current. Now I can get the car out in and pay most of the other bills off in a few months, going to rough. My question would it be best to try and settle the defiency or go thru chapter 13 because in a few months my financial situation my change(Im on a good short time contract right now) I don't think chapter 13 would do anything for me because I will still have to pay the whole balance and the house is gone and be stuck in that position for 3-5 years and wheN I get out of it it still might not be paid. I would like to try and purchase again one day and want to clean up my credit. Just not sure what would look better for me. I actually think the lawyer was looking for a way to still get paid Any help would be appreciated, thanks

[newbie2]

Real quick I don't know if this question has been asked, sorry if it has.
I should have filed chpter 7 a long time ago, but now I am in a position where I make more money and I want pass a means test. I spoke to a lawyer and he said maybe a chapter 13 is the way to go. My house was sold in foreclosure and left a defiency of $40k and my car was recenltly reposessed.
I was applying payments to catch my car up but they came and got it before I could get it current. Now I can get the car out in and pay most of the other bills off in a few months, going to rough. My question would it be best to try and settle the defiency or go thru chapter 13 because in a few months my financial situation my change(Im on a good short time contract right now) I don't think chapter 13 would do anything for me because I will still have to pay the whole balance and the house is gone and be stuck in that position for 3-5 years and wheN I get out of it it still might not be paid. I would like to try and purchase again one day and want to clean up my credit. Just not sure what would look better for me. I actually think the lawyer was looking for a way to still get paid Any help would be appreciated, thanks

If you can get he car back without filing for a Chapter 13, I would do that. Since it doesn't sound like you've been sued yet for that deficiency balance there really is no hurry to file bankruptcy(except for your car situation).

Wait until your income is more stable so you have a clearer picture of your forward looking financial status.

Also, you don't have to pay the whole balance of that deficiency. It became an unsecured balance when you lost the home. Wait to file when it is good for you to do so and you'll be able to get a true fresh start.

[LadyInTheRed]

Yeah, waiting until your situation is stable to file make senses. You don't want to file a Chap 13 if you aren't reasonable confident that you will have enough income for 5 years to complete the plan.

While you are working, save as much as you can so you can offer a lump sum settlement to the mortgage company. A good rule of thumb for deciding whether to file BK is whether you can pay off your debts within 5 years. The mortgage deficiency is an unsecured debt. Whatever is not paid during a Chap 13 plan will be discharged. If you later qualify for a 7, the entire balance will be discharged.

[bulldog]

Thanks
to the both of you..

Real quick how likely is it will the mortgage company will try and seek a judgement for the defiency amount in the near future, I guess that's what I am more concerned about.

[keepmine]

Thanks
to the both of you..

Real quick how likely is it will the mortgage company will try and seek a judgement for the defiency amount in the near future, I guess that's what I am more concerned about.

Are you in a state where you can be sued over a deficiency judgment?

If you are, there is just noway anyone here can speak for your lender.

[bulldog]

NC....I don't believe so, I have been researching that and got 2 different answers but the most popular was no....

This brings to a follow on...lets say they decide to send me a 1099. Does it still show on my credit as owing that 40k..how will mortgage lenders look at that down the road...
You guys are great..I appreciate the talks bc the lawyer I was talking to, he knows that I am overseas and everytime he tells me to call him he never answers, told me he would be free all weekend but no answer or email...