Question about 2nd Mortgage as unsecured claim

[whiscox]

I am very close to my confirmation hearing and my attorney just filed an ammended plan because the timeframe for the creditors to make a claim has passed. Under my ammended plan it has us paying 100% to our unsecured creditors (about $40,000 at $700/month). We have also made a motion to strip the second mortgage of around $60,000 since our first mortgage is worth far less than what we owe. I am told this part is pretty standard and should not be an issue in the least.

However, I am very confused because the plan, while covering 100% of the unsecured creditors, will not cover all of the debt if and when the 2nd mortgage is deemed unsecured. I am curious what to expect going forward (I have not been able to get ahold of my attoney). The means test shows us being able to afford $1200/month in payments. Will our payments go up to that amount when the 2nd mortgage is added, or will it be dropped completely because they filed as a secured claim?

If it is standard procedure to simply up the payment to the means test amount once the 2nd mortgage is determined to be an unsecured debt, then I was curious as to why my attorney would not have simply filed our ammended plan to that amount right off the bat. I've obviously got my fingers crossed that they have to file seperately as an unsecured claim in order to be part of the payment plan, but it would seem that is pretty unlikely. Thanks in advance for any advice on what to expect!

[enginegirl]

they don't have to file separately.... what typically happens is the Mortgage holder objects to the lien strip and then the judge deems it unsecured... and then it becomes part of your unsecured creditors... (at least that is what happened with mine, I am in the So.Fl District). I wouldn't be fixated on the % you are paying back but on the monthly payment and if you can afford it....
Wish I could tell you more...

ps your confirmation may be postponed and really it is not unusual for that to happen and you should NOT worry about it!
The good news is that being in Florida... the count down starts the day you file and not the you are confirmed!!!

[justbroke]

If you have $1,200 in DMI, then that is the amount that your contribution to unsecured creditors could be. You indicate it's at $700 right now (with 100% payback). If the $60K is included, then you would have $100K in the unsecured creditor pool, and that could mean $1,200/month and a less than 100% payback.

Anyhow, if they weren't included as unsecured to start with, then your attorney probably included them as secured in the Plan payment calculation. I don't know in what amount, so can't tell you what to expect, but there may be some more math to do, or your attorney is hoping that getting this final plan confirmed will keep the creditor (2nd mortgage) from being paid in the Plan. Could be a nice strategy if you ask me.