Have not been around for years but here we go again

[Lajazz947]

Discharged on a 7 Oct of 2009 Thinking about a 13 now.

Lost about 70% of my income so here we are again. I have regrouped and make enough to pay the house etc but am 3 months behind with wachovia.

One more month and they will only accept 2 payments.

House worth about what I owe on first, maybe a bit lower.
HELOC can be stripped.

The thorn in my side is a student loan that JUST defaulted. Collection agency says they will work with me and a tax lien on my house.

My strategy is to wait as long as possible to file, save the house payments, try to work with the collection agency and file right before the foreclosure occurs.

I would have some sizable cash if it takes a few months which I would have to declare unless I stuff it in a tin can.

Am I missing something? If I can hang out until December at least my debts will be discharged after my 13 plan is done says my attorney.

Also, can they garnish my wages if I declare? What if I make a plan with the collection agency THEN I file? Will it be modified?

I am sure I have many more questions but that's all for now.

Thanks to you good folks I survived my 7 a few years back.

[IHateToBeEmo]

The thorn in my side is a student loan that JUST defaulted.

Also, can they garnish my wages if I declare? What if I make a plan with the collection agency THEN I file? Will it be modified?

The student loan people will be able to garnish your wages only when you're not under Chapter 13 protection.

What would allow you to keep more of your income, Chapter 13 payments (with delayed student loan debt accumulating), or student loan payments taken out of your paycheck in a garnishment and you dealing with your other debts without bankruptcy protection?

[Lajazz947]

Thanks, I am going to be proposing a payment plan to the student loan people tomorrow. The 15% of wages is more or less the same. What I am worried about is the house which I need to save.

Another issue is a 1-800 auto loan which while not allot of debt, 1500 or so, the payment is outrageous and interest rate is unbelievably high.

I assume that the court lowers that interest rate?

Thanks again,

[AngelinaCatHub]

Hey Jazzy, you have been missed. Kinda welcome back but not with another bk on your head. I remember the hamsters playing for you. But, you know your with your old friends and we will help if possible. First no hiding stuff in cans. You know those rules from last time. At this time go with your lawyer as he seems to be confident with your plan. I'm not sure about 13 stuff but 'Ihatetobemo' has an idea. Put those student loans into the plan. They won't go away.

Clark Howard came across the student loan thing. He states them to be the worse thing ever to do. Too many consider them easy money. He says go to a cheaper college. You know some doctors live to retire with student loans over their heads. 'Hub

[Flamingo]

My question is, if you lost 70% of your income, can you really afford to keep your house with all you state is going on? I just mentioned in another post to someone who wants to file a Chapter 13 for the main purpose of saving their house and if one cannot afford to keep a house and is struggling like mad and worrying about mortgage payments, those mortgage payments don't go away and still have to be paid along with any Plan payment for the 13 and one can find themselves in a bad position in a few months if they just cannot really afford the house.

I am sure you are aware from past postings in this forum as to inquiries from serial filers that your situation will probably be under more scrutiiny by your trustee since you just filed a Chapter 7 two years ago. Have you spoken with the attorney who handled your previous BK?

[SMinGA2]

I'm in a similar boat - not eligible for a ch. 7 so moving closer to filing ch. 13. What your attorney said about waiting til December to file makes sense. You need 4 years between the ch. 7 filing & ch. 13 filing for the 13 to lead to a discharge. Assuming home value is less than 1st, you should be able to strip the 2nd in a 13.

Even at a high rate, I'm thinking your car loan will be paid off by December if the principal balance now is only $1500. Is it a reliable vehicle, that can see you through another 3-5 years?

If you didn't have the 2nd mortgage to pay, would you be able to handle your 1st mortgage & a plan payment (to cover arrears, etc.)?

Any chance of talking modification with your 1st mortgage company? If nothing else, it might be a good stall tactic to buy you some time.

No need to hide your cash in a tin can. From what I vaguely recall, CA has 2 sets of exemptions - and if you don't have home equity to protect I think there is a decent wild card? If so would be able to exempt your cash & save it for a rainy day.

Just some topics to think about!

[Lajazz947]

Thanks, I lost the income which is what through me back in but I now make enough to keep it so what I am trying to do is manage through this mess until things get better.

Medical bills did not help either.

Used to live high on the hog with a Porsche, jag and Volvo, trips everywhere, no expense spared. Those times were rented. Now have an old beamer and wife drives and older Acura SUV, health insurance down to a minimum, no vacations but we ARE healthy so thats the most important thing.

I have no doubt that they will but I am like an alcoholic now.....one day at a time.

I know what you mean about serial filing but beleive me I do not want to do this. My last filing was in 2008 so I am near 4 years now. My attorney does not seen to think that it is an issue.

The Trustee can scrutinize and they will see why I am here. I have every answer in the book ready with paperwork to back it up. Thanks for the warning though.

[Lajazz947]

I'm in a similar boat - not eligible for a ch. 7 so moving closer to filing ch. 13. What your attorney said about waiting til December to file makes sense. You need 4 years between the ch. 7 filing & ch. 13 filing for the 13 to lead to a discharge. Assuming home value is less than 1st, you should be able to strip the 2nd in a 13.

Even at a high rate, I'm thinking your car loan will be paid off by December if the principal balance now is only $1500. Is it a reliable vehicle, that can see you through another 3-5 years?

If you didn't have the 2nd mortgage to pay, would you be able to handle your 1st mortgage & a plan payment (to cover arrears, etc.)?

Any chance of talking modification with your 1st mortgage company? If nothing else, it might be a good stall tactic to buy you some time.

No need to hide your cash in a tin can. From what I vaguely recall, CA has 2 sets of exemptions - and if you don't have home equity to protect I think there is a decent wild card? If so would be able to exempt your cash & save it for a rainy day.

Just some topics to think about!

Absolutely great advice. My only concern is the house. Wachovia, ( Wells fargo seems to move fast on FC so I dont know if I have until Dec but will get a gauge on it.

I already modified, thank God.

I can actually handle the house payment if I got rid of the auto title loan. yes, the car is realiable, a 2003 Acura so I am Ok with it.

[Lajazz947]

Hey Jazzy, you have been missed. Kinda welcome back but not with another bk on your head. I remember the hamsters playing for you. But, you know your with your old friends and we will help if possible. First no hiding stuff in cans. You know those rules from last time. At this time go with your lawyer as he seems to be confident with your plan. I'm not sure about 13 stuff but 'Ihatetobemo' has an idea. Put those student loans into the plan. They won't go away.

Clark Howard came across the student loan thing. He states them to be the worse thing ever to do. Too many consider them easy money. He says go to a cheaper college. You know some doctors live to retire with student loans over their heads. 'Hub

Thanks, I hate being in this position but hey, things could be worse.

The student loans were the WORST thing I ever did although with my degree it has opened doors which allow me to work so its not a total loss.

I will be here awhile.

Thanks again.

[biotechsolution]

Is the title loan secured with the vehicle? Is it considered an auto loan for the purposes of lowering the interest rate? or more like a payday loan secured by the car? Not sure if they are both treated the same in a bk.
how much other debt are we talking about? would you be in a 100% payback anyway even if you wait until you file Dec 2012?

[Lajazz947]

Is the title loan secured with the vehicle? Is it considered an auto loan for the purposes of lowering the interest rate? or more like a payday loan secured by the car? Not sure if they are both treated the same in a bk.
how much other debt are we talking about? would you be in a 100% payback anyway even if you wait until you file Dec 2012?

It is an auto title loan not a payday loan. 1-800-auto loan I think it's called. I will be paying it back anyway, I just want to lower the interest rate.

I know what the rate is but I am trying to block it out of collective memory but it was there when I needed it so oh well.