Question about filing Chapter 13 and receiving hold of stay for mortgage. (Texas)

[Thetruth1983]

Hello. I am new here and have been combing the forums for answers. There are a couple of issues I am not clear on but first I will tell you my situation. I am currently 5 months behind on my mortgage with Chase. I found out a couple days ago that my home is in active foreclosure with a sale date of January 4th. I have every intention of keeping my home but Chase is not helping me at all. I am currently collecting unemployment benefits which is about 1600 per month and I also just started receiving MGIB post 911 benefits that total 1550 per month. I am a 50% disabled veteran and I should start receiving $900 per month beginning April of next year (The VA is holding payments until then so I can satisfy a debt I had back on active duty).

My goal is to save my house and it seems that the only way to do it is to file Chapter 13. I do have a few questions though. First, I know I will get a automatic hold of stay when I file but from what I have read, there is nothing stopping Chase from getting the stay removed and then proceeding with foreclosure. I don't want to go through the trouble of filing if they will foreclose anyway.

Also, both me and my wife are listed on the mortgage. Would this require us both to file bankruptcy? She does not make much money and her only debt is the mortgage and 1 credit card. When we bought the home, they listed me as the primary person since I made the majority of the income.

I think I will not have any problems making my payments. I am in Arrears by $5500 and my normal monthly mortgage payment is $1054 per month. I have cancelled all the luxuries in my life and the only other debt I have is a car loan. Staying in my home is my number one priority. Thanks to anyone who can help with advice!

[car67]

You got $3100 a month income and you should be able to keep the house if you get track with a normal payment monthly inside the plan that meets your mortage plus some on the arrears each month over the life of the plan!

[justbroke]

My goal is to save my house and it seems that the only way to do it is to file Chapter 13. I do have a few questions though. First, I know I will get a automatic hold of stay when I file but from what I have read, there is nothing stopping Chase from getting the stay removed and then proceeding with foreclosure. I don't want to go through the trouble of filing if they will foreclose anyway.

Yes, there is something to stop them. The automatic stay. I know it sounds confusing, but all creditors in a Chapter 13 are bound by the automatic stay. Chase would be foolish and quite stupid to file a motion for relief from stay when your Chapter 13 Plan of Reorganization includes a plan to cure the arrears. This is exactly what a Chapter 13 is designed for. In a Chapter 13, the debtors residence is necessary for the effective reorganization of the debtor, unlike a Chapter 7.

They can't do anything to you so long as you include them in your Plan, and draw up a plan that cures the arrears within 36 to 60 months. They can object if the payment amount isn't right or you put the wrong percentage, but they won't get relief from the stay.

Also, both me and my wife are listed on the mortgage. Would this require us both to file bankruptcy?

No.

You should try the Means Test at Legal Consumer and see how that calculates your "disposable" monthly income (DMI). While it won't be 1000% accurate, it will give you some idea of what you'd have to pay to the unsecured creditors each month of your plan.

[michaela]

I live in ny and filed chapter 13 three times in the past 6 yrs because for some reason or another I fell behind on my payments. Should I feel bad that I filed 3x absolutly not since chase has not helped me out at all. I have a subprime mortgage with a 13% interest rate tried doing a modification and they found every reason in the world not to give it to me. What I wanted to tell you is to file alone do not include your spouse or let her file. I always did the filings so my husbands credit report didnt have a bankruptcy on it. If you have any questions let me kno

[Thetruth1983]

Thanks for the answers guys! I plan on speaking with lawyers starting on Monday so I can get the ball rolling. Since I found out my house was in foreclosure, I have been getting little sleep and eating little since I have been worrying about this. I really hope Chapter 13 works for me and I can stick to the plan!

[CoBelle]

I think you've got it covered. JB is right...and the reason why I'd hoped to stay in a 13....my home is necessary for my reorganization, but not safe in a 7.
Take a deep breathe and try to relax...you're gonna be ok!

[justbaby]

I fell in a similar situation myself...found out Wells Fargo had me in active foreclosure after taking me through a whirlwind of trying to modify or approve me for a workout option. Nothing ever came through..I sent all of their required documents over 50 times! Ridiculous! I called in one day to check the status of my workout options, rep told me "well, you are now in active foreclosure and we are unable to approve you for an option at this time", no sleep for days! BUT know that once you file, everything stops! The best thing since sliced bread if you ask me...I know that may sound awful BUT filing Ch 13 gives you that opportunity to stay in your lifelong treasure, your house! I know some people have mixed emotions about filing but for me, I was full of joy knowing that I can rebuild my life and start fresh as if I never missed a mortgage payment. (I know that's not the case but it felt like that) - I pay them outside of my plan but its been very easy. I had been trying and trying to get caught up, trying to make double payments...never worked.

I remember reading on forums and other sites and thought the same thing...why file if they will get the stay lifted. Well they can only do that if you miss a mortgage payment (my case) or miss a trustee payment. Good luck!