My husband and I are seriously considering filing Ch. 13. It probably won't be for another month or 2 though. We are in the process of trying to modify our mortgage through ALS which I hear is a complete joke, so I am not counting on that. I am also in the middle of a lawsuit over one of my debts and I'd like to file before I get a judgement and garnishment. A couple of pre-filing questions:
1. Would it be better to wait until after we file our taxes for 2010 and get our return? (We usually get between 1-3K). Or would it not matter and even if we file post getting our return do they take that or does it affect us negatively?
2. I am currently in 2 arrangements w/creditors/law firms and am making a $250 payment to one each month, and a $50 payment to another. Do I need to stop paying these a few months before filing? Would paying these, or even paying my mortgage (we are temporarily on a reduced payment plan of $530) count as preferential treatment? I am also paying $175 month to our HOA in back assessments/interest/late fees. The lawyer we consulted with said we could include that or not in the Ch. 13. I'm thinking I'd rather not- I'd rather my $ go to my local HOA than creditors. (Is that awful of me?) Would paying that be preferential treament?
3. Any tax returns, or larger amount of unexpected $ we receive post filing will go to the trustee, correct? Will that just increase the amount we pay, or is the total amount you will pay set at the beginning and if receive some unexpected $ is that just applied towards the original total and you pay it off sooner?
Thanks so much- I feel like I have so many questions and I really want to make an informed decision regarding this. I've screwed enough up getting to this point!
1. Would it be better to wait until after we file our taxes for 2010 and get our return? (We usually get between 1-3K). Or would it not matter and even if we file post getting our return do they take that or does it affect us negatively?
2. I am currently in 2 arrangements w/creditors/law firms and am making a $250 payment to one each month, and a $50 payment to another. Do I need to stop paying these a few months before filing? Would paying these, or even paying my mortgage (we are temporarily on a reduced payment plan of $530) count as preferential treatment? I am also paying $175 month to our HOA in back assessments/interest/late fees. The lawyer we consulted with said we could include that or not in the Ch. 13. I'm thinking I'd rather not- I'd rather my $ go to my local HOA than creditors. (Is that awful of me?) Would paying that be preferential treament?
3. Any tax returns, or larger amount of unexpected $ we receive post filing will go to the trustee, correct? Will that just increase the amount we pay, or is the total amount you will pay set at the beginning and if receive some unexpected $ is that just applied towards the original total and you pay it off sooner?
Thanks so much- I feel like I have so many questions and I really want to make an informed decision regarding this. I've screwed enough up getting to this point!
Comment