Questions about Ch13 / pre-foreclosure

[kolCh13]

Hello,

I'm preparing to file Ch13 end of Jan and currently I'm 3 payments behind on my mortgage. I just received pre foreclosure notice (which will expire 12/16/10) from my lander (HSBC). Here are some of my questions below...

Does anyone know what is the process from this point onward for lander?
How long do I have after this pre foreclosure notice that Ive received till I file Ch13?
What option/action do I have at this point to stop foreclosure?

I don't have enough money for 3 missed payments due to job loss. I just started new job from Dec 1st after 5mos.


Thanks for your help!

[Pandora]

welcome to the forum!

Filing BK (either 7 or 13) will stop the foreclosure for a while, however given you're behind on your mortgage - you will have to pay back arrears in your Ch. 13 plan - on top of your mortgage payment, and any other secured items or priority items (like attorney fees).

Some questions that you need to look at are:

Are you above median or below? What is your last 6 months income averaged out? How many people in your household? Are you going to be able to pay your mortgage plus arrears in a Ch. 13 plan along with everything else that may be required? etc..etc.. etc.

Read through the forums, you'll learn alot about how Ch. 13 works.

Given you just started a new job - the trustee will want a few months of paystubs to see what your pay is/will be and what deductions you have. What is the reason for you wanting to file a 13 vs. a 7?

[kolCh13]

Thanks Pandora for your reply.

We don't qualify for Ch 7 (b'cause my wife makes above median) and also we need to save our home/car.

I was in UI for last 4 mos, my atty said that's not a income that he can use to calculate disposable income.
We may able to pay all priority items but very less will go to unsecured items. My atty said we need to come up with at least 20%-30% towards unsecured items. At this time with my new income (about 20k less pay then previous job) it looks like only about 10-12%.

Thanks!

[LadyInTheRed]

The bankruptcy code does not require that unsecured creditors get paid a certain percentage. They only must receive what they would receive in a Chap 7 liquidation (the value of any non-exempt assets). I suggest you consult with a couple more attorneys. It sounds like this attorney wants to go the path of least resistance rather than fight for a reasonable plan. He probably knows that the trustee will look closer at a plan that does not pay 20% to 30% to unsecured creditors. That is not a good reason to put you in a plan you can't complete.