Need help with questions on Chapter 13

[anthony5]

I live in California and filed with my wife Chapter 13 on 2/27/2012 and had a scheduled sale date for 3/1/2012.

We only have one income as my wife is unemployed and I bring in about $4700 $3800 after taxes.

We did a skeletal file as time was of the essence and have about $60,000 in assets we do not want to lose so Chapter 7 was out.

We initially wanted to save our home and pay back our debts but I'm rethinking keeping the home strategy as we already completed a loan modification with BofA and got our payments reduced to 2% fixed for the remainder of the loan but our payment is still $3000 and we are upside down by over $240,00 on our house. We put a 20% down payment of $120,000 and we would be losing that.

My wife is looking for work and things are looking like she might get a new job making $36K - $40K. We have unsecured debt at about $50K.

Do you think we are going to qualify for a chapter 13 because we would like to pay back our debts and keep our assets. Going back to the home although we would like to keep it, "wife loves it" it is real hard to make that payment but might not be too hard if we have an additional income. I would like to buy as much time as possible to stay in the house to save some money for a rental and deposit.

Should we include it in the 13th or surrender it. Any help would be appreciated.

Thank You, Anthony

[papie]

That's obviously a loaded question and something you and your wife need to work out between yourselves. We initially wanted to keep our home, but after a year in our Chapter 13, thousands of dollars in home repairs that needed to be done, being upside down and unable to sell (we never wanted to settle in the area permanently), and also having long commutes to and from work, we decided to let the house go. It was the best decision for us.

If we would have been planning on staying in this area for years to come, we probably would have reconsidered.

Filing bankruptcy is a lot to take in, a lot of decisions and things to think about. You should also speak to your lawyer about this. Our lawyer told us that we would have at least six months in our home after they notified the bank we were going to surrender it. That was in July and they still haven't taken any action to actually foreclose on it. Things like this vary by state and bank though.

[AngelinaCat]

We did a skeletal file as time was of the essence and have about $60,000 in assets we do not want to lose so Chapter 7 was out.

Welcome to the forum, but you are not going to like what I have to say. And that is this: if you have NOT been already considering filing, you are already 'toast', and 'burnt toast' at that.

Why did you file a 'skeletal' petition, and what does that mean? This sounds like you filed an emergency petition in order to get some creditor off your back. You now have exactly 15 CALENDAR days, from that date of filing, to get all of your other paperwork in.

If you don't, your case will be dismissed, and depending on the local rules of your BK court, etc., you may have some penalties, if you try to file again.

You really have given no information that we can work with.

Do you have an attorney? Your post does not read like you do.

You and your wife have got to sit down and have very serious discussion about what is the most valuable commodity in your lives--that is--the two of you, as a loving, caring family unit--or a house, that when we read toward the bottom of your post has become a millstone.

Only the two of you can decide that.

ETA: I just re-read your post--which I split into easier to read paragraphs--and see that you have some 60K of assets you wish to preserve. If you have not talked to an attorney, you need to do so.

I will also add that assets are 'things'. You may not NEED all those 'things'; they are WANTS. You and the Missus need to thoroughly discuss that as well. If you don't, your marriage and your BK, no matter the chapter, will fail.

I wish you the Very Best.

[SMinGA2]

For a successful ch. 13, you must be able to submit a doable repayment plan. With net income of $3800 and a mortgage payment of $3000 - you won't be able to get a plan approved. I'm not an attorney, but I don't think it takes one to do this math. Even if your #s are sufficient to provide public assistance for all of your food and utility needs - there is still transportation (car maintenance, gas at a minimum), insurance, etc. And on $4700 gross a month, I'm pretty sure you would not qualify for much (if anything) in the way of public assistance.

You cannot afford your home at present. And regarding the downpayment of $120k, you lost that a long time ago. Staying in the house won't get it back. Now is not the time for emotions.

You already filed the ch 13, can't undo what is done. But you won't be able to file a confirmable plan and your case is bound to be dismissed. Find an attorney ASAP - as the incomplete filing could put limitations on when/if you can refile, and what protections you'll get when/if you refile.

[mountanddo]

Wow, after reading your post I feel a little better about my situation. Even though I only make $18/hour I have much more after paying my rent. I'd be screwed if I only had $800 for bills and neccessities. I know you love your house but $3000/month? It might be time to let it go.

[momofthree]

There is no way to keep the house in your position.

Income $3800/mo.

mortgage $3000/mo.
ch.13 plan payment $1000/mo. minimum (in order to keep the $60k in assets)

That's already more than your income right there and doesn't include ANY actual living expenses, you know like food, electricity, water, transportation, etc. Having a house that you love and $60k in assets is all fine and dandy, but if it means you can't even put food on the table or gas in your car, then you have a major problem.

[karm43]

Hopefully your wife will get a job. My situation we have animals very hard to rent they are family.. The thought of letting them go was not a option. Otherwise, I would have walked away.

[keepsmiling]

How did you get your 60K valuation?
Is it possible you are overvaluing the items?