House payment amount in a Ch. 13

[deedee642]

Hi,
I have a question about a Ch. 13 bankruptcy. In my state the allowance for housing/1 person is $750.00. My house payment is $1400.00 How is this addressed in a Ch. 13 full payback? Would my mortgage company only receive $750.00 or the whole amount?
Thanks,
Dee

[LadyInTheRed]

I'm assuming you intend to keep the house. If you are current on the mortgage payments you would probably make the house payment separately from the plan payment unless your local court required the payment be made through the plan payment. Either way, the payment would still be $1400 because the bankruptcy court can't alter the terms of a mortgage on a personal residence except to strip an unsecured second. The question is whether the trustee will object to your budget including that much for your house payment when determining what your plan payment will be. Most people are allowed the entire mortgage payment, even if it is above local standards. But, we have heard recently about a trustee in Washington objecting to a house payment that was above local standards. A local bankruptcy attorney should be able to tell you whether it will be an issue for you.

[LadyInTheRed]

I was wrong. It was Michigan, not Washington. I was thinking of different issue people are encountering in Washington.

Here's the thread by Alroth about the trustee objecting to a mortgage payment: http://www.bkforum.com/showthread.ph...ured-Creditors

And a follow up: http://www.bkforum.com/showthread.ph...n-Confirmation