Ok, so here is my situation:
I receive SSDI and so do my children. We passed the means test, but unfortunately, because of my state and the schedules, we will most likely be pushed into a chapter 13
According to what I have calculated via the means test on a chapter 13, we would pay 100% and that payment would be about 1,000-1,100 per month for 60 months because they will add the Social Security in.
We are filing because a 2nd mortgage is suing us from a house that we foreclosed on (which is considered unsecured debt in UT). They have already been granted the judgment. We have some minor credit card debt that could be garnished, but it's only $3,500.
I just thought of another option besides chapter 13, but am not sure if it will work. Since my SSDI is not garnishable and the 25% of my husbands income is the max they can garnish in my state, would it be more beneficial financially, if we just let the mortgage company garnish? If they do it would be about $800. Still alot, but after 5 years, they would be paid off (and that is if they continually got judgments).
At this point, we do not care about our credit. We do not plan on financing anything ever again. We have adopted the cash-only Dave Ramsey plan.
My thoughts are to try with the chapter 7, but then if they try to dismiss it or push us into a 13, just let them dismiss it.
What am I missing as possible consequences?
I receive SSDI and so do my children. We passed the means test, but unfortunately, because of my state and the schedules, we will most likely be pushed into a chapter 13
According to what I have calculated via the means test on a chapter 13, we would pay 100% and that payment would be about 1,000-1,100 per month for 60 months because they will add the Social Security in.
We are filing because a 2nd mortgage is suing us from a house that we foreclosed on (which is considered unsecured debt in UT). They have already been granted the judgment. We have some minor credit card debt that could be garnished, but it's only $3,500.
I just thought of another option besides chapter 13, but am not sure if it will work. Since my SSDI is not garnishable and the 25% of my husbands income is the max they can garnish in my state, would it be more beneficial financially, if we just let the mortgage company garnish? If they do it would be about $800. Still alot, but after 5 years, they would be paid off (and that is if they continually got judgments).
At this point, we do not care about our credit. We do not plan on financing anything ever again. We have adopted the cash-only Dave Ramsey plan.
My thoughts are to try with the chapter 7, but then if they try to dismiss it or push us into a 13, just let them dismiss it.
What am I missing as possible consequences?
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