We filed ch 13 in 2009 in KY. We've made all our payments up until last fall. I was in a wreck that was not my fault. The car that hit me had insurance, but denied the claim statiing their driver wasn't at fault - the car that hit them was uninsured. My car was totaled - we were looking at over $5000 in repairs on a car that was worth maybe $4000. And we only had liability - long story there.
The garage that had our car agreed to scrap the car and keep the $$ to pay towing and storage fees. It was around this time that we had a loan through 401k that would be paid off - so we took another loan to purchase a car - this car was the only one that would hold our whole family. Due to the original loan being paid off our BK payment was going up as well. We contacted our lawyer about possibly lowering our payment since we'd had a child in 2011 - we'd actually started this process before the wreck.
While waiting for an answer we were instructed to pay the lower amount. Attorney comes back to us and says that our original paperwork states that we had 3 children and I was pregnant with a 4th. Somehow this got by everyone at the time - but we based our budget on a family of 5, not 6. When we originally started the paperwork for BK I was pg with our 3rd child and I think that's where the confusion was. We started the process, then decided to wait and ended up filing after he was born, so we listed the 3 children, but no one took out the part saying I was pregnant. Trustee is also ticked that we took out a 401k loan without approval - we didn't know that we couldn't since the 401k is our money and we are our own creditors.
Anyway - we were denied. hubby thought lawyer said we were waiting on a 2nd ruling - so we continued to pay lower amount. Of course we get a letter that we're about 1500 behind. In the meantime we find out that our mortgage payment had gone up as well - in Jan. of 2012 and we weren't notified. So we use the tax return to pay the mortgage and have about half of what's due for bankruptcy. We agree to attempt to catch up within 90 days, while making the higher payment....not really sure how we're going to do that since we're budgeted to the penny.
About 30 days into this agreement hubby got laid off from his job of almost 9 years. He is technically employed until Friday -and he will get a severance package. Unemployment is about $300 more than our mortgage, our BK payment is $750, not to mention electric, water, FOOD. We thought we had a saving grace - KY has a homestead program to help pay your mortgage, but you can't qualify if you have an active bankruptcy. A call to our lawyer resulted in a call back saying with only 13 months left there's nothing they can do - but to call back if we want to explore our options.
We're considering filing to dismiss the bankruptcy so that we can qualify for the homestead program. The other option would be seeing if we can pay it off ahead - the severance would be enough to pay the BK, but leaves us no cushion if it takes a while to find a job.
Can anyone give me any insight as to the best way to handle this?
The garage that had our car agreed to scrap the car and keep the $$ to pay towing and storage fees. It was around this time that we had a loan through 401k that would be paid off - so we took another loan to purchase a car - this car was the only one that would hold our whole family. Due to the original loan being paid off our BK payment was going up as well. We contacted our lawyer about possibly lowering our payment since we'd had a child in 2011 - we'd actually started this process before the wreck.
While waiting for an answer we were instructed to pay the lower amount. Attorney comes back to us and says that our original paperwork states that we had 3 children and I was pregnant with a 4th. Somehow this got by everyone at the time - but we based our budget on a family of 5, not 6. When we originally started the paperwork for BK I was pg with our 3rd child and I think that's where the confusion was. We started the process, then decided to wait and ended up filing after he was born, so we listed the 3 children, but no one took out the part saying I was pregnant. Trustee is also ticked that we took out a 401k loan without approval - we didn't know that we couldn't since the 401k is our money and we are our own creditors.
Anyway - we were denied. hubby thought lawyer said we were waiting on a 2nd ruling - so we continued to pay lower amount. Of course we get a letter that we're about 1500 behind. In the meantime we find out that our mortgage payment had gone up as well - in Jan. of 2012 and we weren't notified. So we use the tax return to pay the mortgage and have about half of what's due for bankruptcy. We agree to attempt to catch up within 90 days, while making the higher payment....not really sure how we're going to do that since we're budgeted to the penny.
About 30 days into this agreement hubby got laid off from his job of almost 9 years. He is technically employed until Friday -and he will get a severance package. Unemployment is about $300 more than our mortgage, our BK payment is $750, not to mention electric, water, FOOD. We thought we had a saving grace - KY has a homestead program to help pay your mortgage, but you can't qualify if you have an active bankruptcy. A call to our lawyer resulted in a call back saying with only 13 months left there's nothing they can do - but to call back if we want to explore our options.
We're considering filing to dismiss the bankruptcy so that we can qualify for the homestead program. The other option would be seeing if we can pay it off ahead - the severance would be enough to pay the BK, but leaves us no cushion if it takes a while to find a job.
Can anyone give me any insight as to the best way to handle this?
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