top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

Decided to file...few questions?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Decided to file...few questions?

    We figured worst case scenerio is we have a high payment but it should leave us with more money for food, gas, clothes and emergencies then we had before.

    We have stopped paying on a few credit cards a few months ago and now are going to stop all the others. We are going to pay the lawyer some money now and see if we can have him file at the end of Novemeber.
    Is there anything wrong with waiting til then? We want to wait to show them that the overtime will now be short then the previous years since we need to include it to file.

    We plan to use the extra cash for tires, stock up on household needs and put alittle away for moving when the time comes....we are letting the house go too.
    Will it look bad on us to stop paying on everything before we file and start stocking up or should we wait til we file?

    I'm really curiuos about the house in this situation. I have heard we need to keep the HOA current, I have no issue with that and would probally be a good thing since a board member lives next to us. I was also told by friends to stay in the house until we are asked to leave.
    No we are stopping this payment too. Do we bank these payments or what. Until we file I can surely use it to get some things we have to have. But after we file do we just save it? We were planning to save it and use it to move into a rental. Will there be anything wrong with that?

    Our mortgage now is $1400 will they allow use to find a rental for that much? The way this are that will get us a good size house and give us some breathing room.

    Thanks

    #2
    Originally posted by Guest123 View Post
    We have stopped paying on a few credit cards a few months ago and now are going to stop all the others. We are going to pay the lawyer some money now and see if we can have him file at the end of Novemeber. Is there anything wrong with waiting til then?
    No, there's nothing wrong with waiting until then.

    We want to wait to show them that the overtime will now be short then the previous years since we need to include it to file.
    There's really nothing to "show them." Your income will be calculated the same way everyone's is when you file - a lookback of the last six months of your income (and if you are filing as a couple, your spouse's income as well) from all sources. If you have overtime added in during the last six months, it will count into your income calculations. One thing in your favor - there was a recent Supreme Court ruling (see the HHM sticky in this forum) that in Ch 13 the trustees need to take into consideration that overtime, bonuses, etc that are no longer going to be a part of your income going forward and not count it in your income calculations. Talk to your lawyer about how this ruling might impact your filing.

    Will it look bad on us to stop paying on everything before we file and start stocking up or should we wait til we file?
    As long as what you use the cash for are legitimate expenses - food, housing, clothes, home and car repairs, etc. - you'll be fine. The issue you need to discuss with your lawyer is how much cash you can have onhand on filing day in Arizona. Anything over what's allowed risks losing that cash to your trustee who will spread it equally among your creditors who file claims.

    I have heard we need to keep the HOA current...
    Yes, this is generally true, especially after filing if you are staying in the house. In that situation you do need to pay the HOA or even if foreclosed, the HOA will come after you for what you owe them post-filing.

    I was also told by friends to stay in the house until we are asked to leave.
    As long as you have a plan that your lawyer approves for how to deal with the extra cash that will amass before having to leave the house, staying rent-free as long as possible is an excellent idea.

    We were planning to save it and use it to move into a rental. Will there be anything wrong with that?
    If your lawyer doesn't see any issues with saving the extra cash from not paying your mortgage, then you are good to go.

    Our mortgage now is $1400 will they allow use to find a rental for that much?
    The easiest way to ensure your Ch 13 payment remains as confirmed, it's best to keep your rent payment close to your house payment level. Talk this over with your lawyer.
    Last edited by lrprn; 10-09-2010, 05:34 PM.
    I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.

    06/01/06 - Filed Ch 13
    06/28/06 - 341 Meeting
    07/18/06 - Confirmation Hearing - not confirmed, 3 objections
    10/05/06 - Hearing to resolve 2 trustee objections
    01/24/07 - Judge dismisses mortgage company objection
    09/27/07 - Confirmed at last!
    06/10/11 - Trustee confirms all payments made
    08/10/11 - DISCHARGED !

    10/02/11 - CASE CLOSED
    Countdown: 60 months paid, 0 months to go

    Comment


      #3
      Thanks for the reply. With the forward look ruling I will be able to keep our bonuses and any extra overtime that we make during the year.

      Our overtime is spread out once every 6 or so months, we are working it now and if we wait til Nov it will save use a almost a thousand dollars. Not sure if that amount makes a difference.

      We were hoping that moving expenses, first and last months rent plus the deposit could be saved for when we need to move. Just don't want to go into this and get evicted from the house and not have that money saved.
      We don't plan on doing anything stupid with the cash. We will get a Sam's CLub card and stock up on house hold needs.

      Thanks again you were very helpful.

      Comment

      bottom Ad Widget

      Collapse
      Working...
      X