Filing Ch 13 just to strip 2nd mortgage

[Rani0606]

I am filing chapter 13 next week just to strip our 2nd. Our house is now valued at 242000.00 where as our first is at 285000. Is stripping off means we still will have to pay the trustee whatever we owe in second mortgage? We don't have a lot of other debt. We are also buying a new car this weekend as our old one is 10 yrs old with 130000 miles on it. Our attorney said we can always buy a car and then file chap 13. How are the payment calculated? My main concern is paying the trustee on our second mortgage. Can you please help me understand what are included in the payment plan to trustee. Thank you all so much!!

[SMinGA]

The 2nd becomes unsecured debt, you no longer make a 2nd mortgage payment, and they get paid at whatever level your other unsecured creditors get paid.

Your plan payment is your DMI. DMI is what remains when you take Net Income (so after taxes and required deductions) and subtract your regular monthly bills & expenses.

If you have not already done so, you need to sit down and make out a budget - thinking about what all you need in a week, month, year. You want your budget to be realistic. Consider groceries, utilities, insurance, clothing needs, home & vehicle mainetnance, household needs, personal care items, etc. So if your income is $5000 a month, mortgage/utilities/groceries/etc. total $4300 each month - you'd have a plan payment of $700.