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    Delinquency options

    Hello,
    First, I would like to say thank you to those that contribute so much of their time to helping others with their questions or concerns. I could use some help now.
    I will start with our decision to file CH 13. We have a 1st and 2nd mortage, on which we owe about $250k. In addition, we had about 55k in unsecured credit card debt. Long story short, we didn't learn our lesson the first time when we filed CH 7 in May of 2004, thus our only option was to file a 13 in Dec 11.
    Yesterday I received a letter from the trustee office that said we were deliquent in our payments, although I am not really sure how. Our plan has not been confirmed yet, but half the plan payment has been garnished from my check monthly and I have sent in the remaining half via cashier's check. My plan payment is $2570/mo for 36 months and the trustee said I am behind $1235.32. I don't have this, nor the ability to get it from anywhere...so if it turns out I am behind, how do I catch up? I suppose this could be because the court order wants biweekly payments, but I only get paid once a month.
    In addition to this news, my first mortgage finally filed a claim, 122 days after filing our petition mind you. In addition to filing, they have notified us that they intend to file a motion for relief from stay. What exactly does that mean? We were in arrears about one full payment prior to pettion and do have the first and second built into the plan, along with arrears for both, although I think there arrearage was intended to cover post petition.
    What we would really like to is convert to a 7 when we are eligible in mid-May, dump the house and get on with life. (forogt to mention we had a CMA done which basically said we owe 70k more than we could sell for). However, I don't know how we can do that.
    Does anyone have experience renting a home after surrendering theirs? I am concerned about that.
    Well, the long and short of it is that I am feeling some stress over this whole delinquent thing and the mortgage company wanting to file relief of stay and could use some reassurance that the world won't end over my bankruptcy.
    Thanks for your time, hope my questions make some sense.

    Bill

    #2
    When you filed chap7 did you make way less? Sounds like you make descent money, or is that payment including your mort and cars? If you get rid of the house they will just use that moneyn as dmi, not sure if you would be able to do a 7.Do you have a big family then your income could be higher. Can't they take their payment monthly?

    Comment


      #3
      Hi, Thanks for responding.
      Yes when we did the prior 7 I made considerably less that I do now.
      The payment we have been making in the 13 includes the 1st/2nd, arrearage payments for 1st/2nd mort, car payment, 1 secured CC, trustee and attorney fees.
      The more I think about it, the more I am convinced that the delinquency notice is due to the fact that the court order has us on a bi-weekly payment vs. a monthly or semi-monthly plan. Hopefully I will find out for sure tomorrow when everyone is back to work.
      In terms of family size, I have 5 kids and in Washington our median income for a family of 7 is like a 104k, I make about 75. As far as the house goes, I am really just trying to find the best solution. It's an older home and although I have put good money into keeping it up, things have been breaking quickly the last year and its more than I can come up with to fix.
      Thanks again for your reply.

      Comment


        #4
        This is certainly something to discuss with your lawyer. We filed Chapter 13 in December of 2009 and didn't decide to surrender our home until the middle of 2011. Our 13 payment decreased by the amount we were paying on the mortgage and we now rent somewhere cheaper. That totally depends on your situation though, so I can't say it would be the same for you.

        As for renting, I found it rather easy. We avoided property management companies and pretty much any place that said they would do a credit check, so no big apartment complexes or anything like that. We went through newspaper listings looking for a house to rent. I called one guy and he seemed really stern, wanted intricate details on why we were moving and things like that, so I automatically assumed that he wouldn't be happy that we foreclosed either. The next guy I called was really nice on the phone and we met him to look at the house, my husband did tell him that we had foreclosed on our home for various reasons and he didn't really care. He just wanted some work and personal references and we were good to go. He is fairly uninvolved in the house. We do a lot of minor cheap repairs, but he will fix anything major. It works for us.

        Giving up a home isn't easy, but sometimes it's the best thing. I can honestly say that having the weight of major home repairs off our shoulders is a great feeling. We are also renting a home closer to our workplace and save about $200/month on gasoline, it's also an overall nicer town and area then where we used to live- I've come to love renting.

        Comment


          #5
          Thank you for sharing your experience! I really appreciate it.

          Comment


            #6
            Hi Bill.

            Are you planning to let your Ch 13 dismiss?

            I ask because I don't think you can convert to a Chapter 7 since your filing date would stay the same. Double check with your lawyer but I am pretty sure this is true...

            Make sure of your earlier filing date in PACER, too. It would suck to be off by a day or two if you do need to refile.

            Are you in the Eastern or Western district of Washington? We are in the Western and things have been a little "interesting" over here for those marking surrender on their petition in reference to their homes. There is a great thread I can reference you to if you are interested or would be affected.

            If you are thinking foreclosure may be a possibility, Washington state has a fairly definitive timeline. The Attorney General's office put this out:



            Welcome to the boards!!
            ~~ Filed Over Median Income Chapter 7: 12/17/2010 ~~ 341 Held: 1/12/2011 ~~ Discharged: 03/16/2011 ~~
            Not an attorney - just an opinionated woman.

            Comment


              #7
              HI, Thanks for the welcome

              Yes, I would be interested in the thread you mention, most anything I can read up on is good!

              So, I really don't want to let our 13 dismiss and am hoping to prevent that. Truthfully I guess I am not sure what I really want with this, other than to pay what's ordered and move on with our lives. Part of me really prefers to surrender the house because of the repair cost and the fact that we owe so much more than its worth. The other part worries about finding a place to live, LOL!
              Hoping to speak with our attorney today and discuss the deliquency issue.

              Comment

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