I am considering filing for chapter 13 bankruptcy mostly for credit card debt however I want to keep my cars. I am also in the middle of my loan modification trial for my 2nd. If I file for bankruptcy will this effect my loan mod. Also will I also be able to do a lien strip?
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Originally posted by RNN View Post
You better be 101 percent sure you want to keep that house.
If you have some uncertainty about the house, then you will be better off letting it go, and see if you qualify for a 7, in which case you don't pay back anything.
I am in a pickle right now, because my job is not very stable, my career is going nowhere, and I have a home under about 100k. Now, I am thinking about going back to school, and walking from the home, because with no good future job prospects, I have decided going back to school would be the smart long term move.
This 13 is bullshit is so many ways, because you are tied down to the trustee and the home for 3-5 years. That really stinks, especially if you are not sure about your future in that home or city.
Hate to say that I wish I didn't file, but I wish I didn't file.
Circumstances change I guess. At least I have no kids and no wife (or ex wife) to nag me.
I can actually just quit my job and convert to a 7 and do what I got to do. But, I am too much of a square sometimes!
just remember to think LONG TERM on this. And if you don't have a stable job/career, then you might want to reconsider. Or if you have to be mobile within 5 years, then reconsider.
Good Luck and God Bless. -
Why would I loose my house if I pay the first. I was under the impression that the 2nd will not foreclose if the house is under the first mortgage.Comment
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Maybe, maybe not. Its a gamble. The 2nd would have to pay off the 1st, and would not collect a dime until the house actually sold. And only make some money if the sale is enough to reimburse what they paid the 1st, selling fees, and then some. So if the house is clearly under water on the 1st - not likely for the 2nd to foreclose. But impossible to predict with 100% certainty.
To your original questions - if you file while in the process of a mod, it will have an impact. The automatic stay goes into effect, and the loan company needs to lift the stay or wait til it ends in order to continue working with you on a mod. As for a lien strip, you need to owe more on the 1st than the house is worth. If that is the situation, then there would be no need to bother with a mod at all if you are intending to file ch. 13.
But as has been otherwise said - think of the big picture. What is the house worth, what do you owe on the first? Is it worth it to stay in the house given the various scenarios of mod, strip, etc.?
Originally posted by RNN View PostGet mortgage modified: DONE! 7 months of back interest payments amortized, payment reduced over $200/mo
(In the 'planning' stage, to file ch. 13 if/when we have to.)Comment
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