Manipulate Mortgage Payment to Qualify for Ch 7?

[seanp951]

I earn too much money to qualify for a Ch 7 without doing the means test. once doing the means test, I don't qualify. i have too much disposable income.

about two years ago i modified my mortgage to make the payments lower. my intreat rate was reduce, but they also stretched payment from a 30 year loan to a 40 year loan.

what would happen if I somehow got the bank to voluntarily change my loan fro a 40 year loan to a 30 year loan - which would jack up my payment amount.

if that amount increased my mortgage debt to a point that i then would qualify for a ch 7... would that work? or is there some rule against this?

[AngelinaCat]

After all of this, are you sure you wish to keep the home?

[despritfreya]

What would happen if I somehow got the bank to voluntarily change my loan fro a 40 year loan to a 30 year loan?

Do you really think that after spending, what, over a year, getting your loan modified - presumably under HAMP - your lender is going to again modify it to raise your payment and increase your chance of default? Not going to happen. But, if you do (probably will take a year to get the lender to modify), then, yes, you can use the new contractually due payment for means testing.

Des.

[HHM]

I am with Desp, probably not going to happen anyway. But yes, if you could get it done, then that amount becomes what you can claim.

But, mathematically, the differences in payment between a 40 year and 30 year mortgage is not that great. On a $250,000 loan at 4.75%, the difference in payment is only $140. That wouldn't help get you to chapter 7.