Tomorrow is the day.........

[jcsawyer]

We are turning in our completed paperwork tomorrow to the attorney. I am SUPER nervous and really am not sure how well I am going to handle this! I want this over with and to begin our new journey to debt freedom! I am just afraid that our payments are going to be outlandishly high (a word....maybe so who knows LOL). My unemployment ends in December so I dont know how well that is going to work and I have not been able to find work either. My hubby makes about 680-840/wk before taxes. We owe $24k in arrears for our first mortgage, $1200 in arrears for my car, $290 for his suv our payments on the car equal $660/mo when they are caught up our mortgage well thats funny because we arent sure what our house payments really are as they seem to change on a monthly sometimes daily basis! The last statement I looked up online stated $768.19 then today (a week later) stated $889.43! Good lord someone pick a number and stick with it! SO being able to find out what our payments really are going to be is going to be difficult! We are hoping a best case scenario of around $1200/mo which is feasible for us. But that more than likely puts us back at a 0% pay out. I am hoping to strip our second mortgage because our first mortgage is now with arrears and everything listed at $117k and valued at $113 given that houses in our area are going for around $90k theres no way we would be able to get $117 or better for our house (even if it is the biggest in the neighborhood LOL) I am just nervous about this sorry for the rambling. Hubby had to take off of work tomorrow so that he could go get the title out of the lock box at the bank that is in his dads and his name. I did find out that since my hubby is on the deed to his dads house under survivorship he should be fine and there should be no consequences on that one. Whew that was nice!


Sorry rambling again! I do that when I am nervous. Ok please tell me should I have anything major to worry about?


Heres a generic rundown:
First Mortgage $24k arrears owe $117k valued at $113 (tax assessment)
Second Mortgage $400 in arrears, owe $23k
Dodge nitro $290 in arrears, Owe $7100 Valued at $9k
Mazda 3 $1200 in arrears, Owe $13.5k Valued at $9.5k
Unsecured debt $6500 (medical and two judgments)
I get $596/mo in unemployment
I spend $65/mo in medications (thank goodness for insurance),
Gas is about $360/mo,
Groceries including paper products and pet supplies is around $400-$450/mo (depending on coupons),
Internet/Tv/House phone (used for fax only) is $96/mo (will be $63 in December)
Cell phones $240 /mo
Water $45/mo
Insurance (vehicle) $200/mo will be dropping to $160 in Oct.
Power $250/mo on the high side (will go on balanced billing in Oct.)

[jcsawyer]

My other question would be how in the world do these attorneys think we can come up with a lump sum of money to start with when we are already in trouble?! The attorney wants us to pay $500 tomorrow (no problem didn't pay anything this week so we had this entire paycheck), then in 7-10 days we are to pay the remaining $495 Plus the $218 to file! Ive got to figure out where we can get the extra $800 from in ten days! Ugh stressful!

[LadyInTheRed]

It sounds like you will be able to strip the 2nd if your value is accurate. To cover the arrears on your first mortgage and cars, plus trustee fees, be prepared for a payment of at least $500 in a 60 month plan. It will be more than that if you have more DMI. On top of that, you will have to pay your regular mortgage and car payments, whether as part of the plan payment or separately. If that sounds doable, you should be okay.

Those fees sound extremely low for a Chap 13. Are some of the attorney fees being included in the plan? People usually pay their attorney fees by stopping payments to unsecured creditors. But, it sounds like you probably aren't making a lot of monthly unsecured payments. If nothing else, you could miss another mortgage or car payment which will increase your plan payment a little. If you are going to do that, let your attorney know so he can take that into account when drafting the plan.

Don't expect to leave the attorney's office knowing what your plan payment will be. It is possible they'll give you an estimate, but they are more likely to take your paperwork and crunch the numbers later.

[momofthree]

Without any income from you, I'm not sure how exactly you're going to make this payment work. If you hubby brings home around $2800 a month (which is probably on the highish side, but it's a nice round number), lets look at your expenses. Side note: What is your household size? Are you cramming down the payment on the mazda?

mortgage: $889
cars: $660
gas: $360
car insurance: $160
power: $250
water: $45
internet/tv/phone: $63
cell phone: $240
groceries: $450
medical: $65
clothing: $50
house maintenance: $50

total: $3282
you're already negative $482/mo.

PLUS, you need to come up with at least $500/mo for your bk payment just to pay off arrears, attorney fees, and tt. I'm not sure this plan will be confirmed unless you find employment.

[SMinGA2]

You won't be paying the car payments of $660. The vehicles will be paid in the plan. But that still means you need SOME income to make this work once your UE runs out.

How long ago did you buy the Mazda 3? And on the vehicles, does the balance owed include the arrears? If so - keep in mind the plan will pay off the vehicles in full with a moderate amount of interest.

In theory, if you have not been paying the car & mortgage payments: you should have some money available for the attorney fees. He/she likely will include some fees in the plan, but wants some $ upfront as well. That is pretty standard.

I see $44,600 to be paid in the plan - plus a little for vehicle interest, attorney fees, trustee fees. Perhaps $850-900 per month minimum plan?

[Pjmax]

My other question would be how in the world do these attorneys think we can come up with a lump sum of money to start with when we are already in trouble?! The attorney wants us to pay $500 tomorrow (no problem didn't pay anything this week so we had this entire paycheck), then in 7-10 days we are to pay the remaining $495 Plus the $218 to file! Ive got to figure out where we can get the extra $800 from in ten days! Ugh stressful!

JC, I actually gave my atty. a typed schedule of when I could pay what. I had planned to pay $700 upfront. The day before our meeting I had a car repair bill of $450, so I listed my income by date, over the next several weeks, then what absolutely had to be paid out of each deposit, and what was left to pay atty, then what I had to live on for the next week or two. It took some juggling, I had to figure out how to pay in full before my unemployment ends in a few weeks, then I will only have my SSI. I was only able to pay $250 at first, but I showed him my payment plan, he was fine with it, and we scheduled the signing/filing date accordingly.

[jcsawyer]

Well we have a signing date of 8/14. Ok well as far as my income I am working on getting SSD due to the many many medical issues I have. We paid the $500 today we have to pay $495 and $315 on the 14th. So coming up with that will be loads of fun! My unemployment is $596/mo till it ends in December. I will be looking for work unless my SSD comes through before then which will be around $900/mo. We have 4 in our home two children and us two. The Mazda was bought 9/2010 the Suv was bought 3/2009. I am not certain I can "cram down" the payment to the mazda. as i don't think I have had it long enough to do so. The balance owed on the vehicles includes the arrears as that is the payoff amounts. The reason I havent paid the mortgage is due to it being so high and well thats a whole nother post unfortunately BOA has messed us up badly. We cannot figure out our house payment for the life of us. We have been unable to make the Mazda payment for the past few months as they have not quite done right on my unemployment and havent been able to get this straight until now. It took a few months so we got behind on that. But we have a budget set so that wont be an issue getting the monies to the attorney.Its been a long road but the road will no longer have so many curves.

[momofthree]

If you get the SSI of $900 a month, you can make it work, but it will be a tremendous struggle and you may have to sacrifice in other areas, like canceling your cell phones or cable tv. That budget I posted is bare bones. If you have kids, they are going to have schooling expenses, clothing, birthdays, Christmas, dr. & dentist appts, etc. Plus, you don't have anything in your budget for vehicle tags and maintenance, and if your cars are older, they may even needs repairs. Your dh may have to take on another job, or your kids may have to start working to pay for their own expenses (don't know their ages). Something has to give to make it work though.