Should I file Chapter 13?

[bstaff72]

I am considering filing chapter 13 to keep my home. I am 35,000 behind in payments. I have about $7k in unsecured debt. My only objective is to keep my house, I think I could afford $600 a month plus my regular mortgage payment for a 5 year repayment. My question is should I file chapter 13 or try another route? My mortgage is with BOA. And I have no reason for the arrears, just plain overspending, irresponsibility etc. Will they possibly work something out with me even though I have not had "hard times" etc. or should I file? Thanks in advance.

[kornellred]

Apparently, your alleged $35K "arrears" stems from a cavalier attitude. Keeping a mortgaged home cannot be that important to you, as your explanation seems to indicate. If what you say is true, your credit is trashed already, so flip a coin or consult a fortune teller.

[SMinGA2]

Filing ch. 13 will cost you more than $600 x 60. There is also the attorney fees to consider, as well as the fact that the trustee takes 5-10% of what you pay in. (That varies by district.)

You say your situation is due to overspending & irresponsibility. Something to consider: have you rectified the conditions that lead to your current situation? IF not - bankruptcy won't fix the problem, but only delay the inevitable. Can you afford your home - regular mortgage payment, maintenance & utilities, as well as other costs & obligations in life? If so - can you afford an extra $800-1000 per month into a ch. 13 to save the home? Also to consider, is the home worth saving? What do you owe compared to what its worth? Does it need major improvements or is it in good condition?

[ValleYum]

You say your situation is due to overspending & irresponsibility. Something to consider: have you rectified the conditions that lead to your current situation? IF not - bankruptcy won't fix the problem, but only delay the inevitable. Can you afford your home - regular mortgage payment, maintenance & utilities, as well as other costs & obligations in life? If so - can you afford an extra $800-1000 per month into a ch. 13 to save the home?

I was just about to type the same thing SMinGA2 did - she said it better than I could have though. She is ABSOLUTELY right - until you correct the underlying issues, it is very likely you won't be successful in keeping your home.

Something in your life is eating at you and causing you to spend recklessly. Perhaps it is time to look deep within yourself and see what you can do to change this.

Good luck.

[em96]

Speak to a bankruptcy lawyer and find out exactly what is involved in filing. Its not as simple as you seem to think it is. Once you get all the facts, you can make your decision. And I too agree with the other responses. You absolutely must fix your spending habits/issues or you will never get out of debt.

[Mayo]

Also consider that if you are in an active 13 and some unforseable catastrophe happens to your house, ie roof, plumbing, etc. You'll have to have an emergency account with cash on hand to fix these things, or either get permission from the trustee to get a loan.

[lindadale]

you can take help of lawyer for this. He only will guide you the best.There is a site Filing Bankruptcy Pros, that guides you on Chapter 13 Bankruptcy which is Designed to Stop Foreclosure, Resolve Debt or they also refer attorney for your help