Filing Mid September - Question

[mckinnea]

Heres our situation - we are 2 mortgage payments behind - missed July and August. We are filing in mid September and I could make our September payment but it may mean I can't purchase a second used vehicle before we file (car was repo'd in July).

I'm afraid if I miss another mortgage payment - the Sheriff will be at our door but we really need a second auto as we have two young children who need to be shuffled around to soccer and swimming...

My atty knows we need another car and he asked that we not spend more than $3500 bu for obvious reasons he cannot advise us NOT to pay our mortgage..

Am I overthinking this? Thanks everyone and have an awesome day !

[drowning123]

Yes, you are overthinking this. There are so many steps that happen before the sheriff shows up, and he/she definitely won't show up before September. Buy the car.

[IamOld]

drowning is right - as soon as you file, the whole thing is stayed - question for you!!! You are 2 months behind, and you'll be paying the arrears in your 13 right?? So...if you file in middle sept, your first POST petition payment will be (I'm assuming) your Oct 1 payment. Would it "mess up" your numbers if you file with three months in arrears and "Keep" your Sept payment, or you don't feel comfortable doing that?

[mckinnea]

Do you mean file in October?? Not sure i understand - but want to... Whatever i can do to better situate ourselves- i'm open to. Thank you!!!

[IamOld]

Good question mckinnea - if you are filing IN THE MONTH of Sept - that means that you can either make your Sept payment and "run" 2 months behind and have July and Aug included in your 13 plan OR (if ok with atty and the "numbers" of your plan) you could NOT make Sept payment, FILE IN SEPT, and then would have to make your OCTOBER payment, as then OCT would be your first post petition payment due (assuming your mort payments are due on the first of each month).

So if it is OK with your atty to have THREE month mort arrears in your plan, IF IF IF it's ok with atty, then you could miss Sept, have a bit of cash, and then start making payments Oct onward...

[mckinnea]

We haven't yet seen the numbers of our plan. Our atty is still crunching and gathering our docs. So this is a variable that isn't clear.

I would like to skip Sept mortgage - have three mos in arrearage and begin all payments in Oct.. Again -- my atty can't advise me to skip my mortgage payment though..

[IamOld]

We haven't yet seen the numbers of our plan. Our atty is still crunching and gathering our docs. So this is a variable that isn't clear.

I would like to skip Sept mortgage - have three mos in arrearage and begin all payments in Oct.. Again -- my atty can't advise me to skip my mortgage payment though..

Right - although mine did!!! But at any rate, please please run it by him first, to make sure that the numbers work IF you skip 3 payments. If they do, and if he is - in principle - ok with it, than you should be good.

Remember that in general you have to make your first Ch 13 payment within 30 days of filing!!!

[mckinnea]

Okay - just got our draft plan.. Our payment will be 60% of our net monthly income.. (or $4,930)
So - what's left needs to cover - food for 4 (90 meals), utilities, phone, insurance, childcare for 2, gas, sports for kids, xmas, birthdays, home maintenance, car maintenance, medical expenses for autistic son, unexpected expenses, etc.. Not listed in any particular order... Oy vey....... ;)

[LadyInTheRed]

Is $4,930 your DMI from the means test or Schedule J? Or is it a minimum created by the mortgage arrears and non exempt assets?

ETA: I'm guessing that includes your mothly mortgage payment? How much is going to unsecured creditors?

[mckinnea]

I'll know more once i read the actual petition...