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    #1

    New Question Chapter 13 BK

    Just getting ready to file chap 13 bk, but now I have another question for the BK Forum.

    As stated before in another post: I'm 69 y/o, retired and receive only SS and state pension for income. Filing 13 primarily for lien-stripping option.

    1st mtg-177,000
    2nd mtg-127,000
    House appraised at 144,000
    cc debt-133,000(charged off)

    Totally current on 1st mtg and my atty says I'm eligible for either 7 or 13.

    Questiono I really need to file bk? From what I understand, unable to garnish ss or pension. If this is correct, what is the benefit of filing at this time? I don't plan on selling the house anytime soon.....possibly file 13 sometime in future just to remove lien and discharged debt.

    Maybe I'm thinking too much about all my options, but I just want to get this right the first time. I get so much info on this site and I don't want to miss out on anything anybody has to offer!
    Tags: None
    #2
    One advantage is getting your loans stripped on the house at today's current market values. But if your never gonna sell and probably won't see the day it is paid off (no offense) other than getting rid of annoying creditors. It is a toss up fpr your situation, more of a personal choice for you at this time.

    Comment

      #3
      Regardless of the value of the home, if you do not either 1)get the 2nd to agree to release its lien or 2) do not strip it off in a 13 and then fail to service the loan the lender will have the right to foreclose. Will it? Probably not but it has the right to.

      Comment

        #4
        I agree with Des (shocking huh? ) - but would like to note one other point: given your 2nd isnt that far away from what you owe the 1st - the likelyhood that they will foreclose right now is a toss up, so if you're the gambling type.....it could go either way in all honesty. However, please consider this - even if you dont pay the 2nd and think "they'll never foreclose, its upside down" - remember: Once your 1st mortgage gets to the value of the 2nd or less...they will foreclose. There is no SOL on a mortgage. Add in late fees, attorney fees, etc to your 2nd and it'll be at the value of the 1st before you know it.

        Toss up at that point.

        Comment

          #5
          Ditto the others. You are in a situation where the market value on your home probably won't go much lower. You are also paying down the first mortgage every month. In just a few short years, you will probably owe less than your house is worth and then lien stripping will no longer be an option. At that point, you'll either have to pay the 2nd, or lose your home.
          Filed Chapter 13 on 2-28-10. 341 completed 4/14/10. Confirmed 5/14/10. Lien strip granted 2/2/11
          0% payback to unsecured creditors, 56 payments down, 4 to go....

          Comment

            #6
            To Pandora,

            Thanks for putting a smile on my face this early in the am.

            Des.

            Comment

              #7
              Originally posted by despritfreya View Post
              To Pandora,

              Thanks for putting a smile on my face this early in the am.

              Des.

              Hmmm..*gives you the once over* so let me ask you this... is that a smile of "ha ha she agreed with me - how funny" or a smile of "HA - funny, nice she agreed given I'm a lawyer" LOL!

              :P

              and you're welcome - but I'm still not coming over to the dark side with ya Des... *winks*

              Comment

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