New Poster - Similar Situation?

[VeeDubNut]

Hello and thank you for everyone who has contributed here.

I really hate having to make my 'first post' here a question - but It almost feels like my situation might be (a little) different and there might be something I am missing.

I will try to give as an abbreviated scenario as possible without leaving anything out.

Nutshell - Mortgage that is being foreclosed on. (It was supposed to stay with the ex, but she didnt follow through with her obligations) - My name is the primary borrower so I am on the hook still.
Mortgage - Original loan - $220K owed $198K - Its being foreclosed on and the bank will get it back.
Home improvement loan (unsecured high interest loan) - ~$15K
Credit card - (another unsecured debt) - ~$18K
Vehicle - (Great rate but little owed and I plan to keep it) - ~$7K

I guess is where my ignorance shines through - With the house being foreclosed on and being repossessed by the bank, how does that incorporate into the 'amount owed' back to the lender(s)? - Ironically, its the same lender for my 3 expenses being tied up in the bankruptcy.

The reason I ask this is - I filled out all of my paperwork with the lawyer and they came back to me with something like an $870 a month payment for 60 months. If you do the quick math here, that adds up to about $51K that I have repaid after the chapter 13 is said and done.

Am I missing something here? Or am I being charged an $11K surcharge to restructure my 'debt' that is owed? (Merely because I *may* have the ability to do so?)

I plan to go back to the lawyer who prepared all of this, because I dont really feel like they give a hoot either way...
"Here sir, fill out this, this and this, and if you get it in early we will give you a discount!"

Arent lawyers supposed to 'counsel' you as well along the way?

Thanks for reading

[159515951]

If you're in a 100% plan, the extra could account for your trustee's and attorney's fees, although the fees would be quite high. Maybe your attorney is anticipating that your house will auction for less than what you owe and your lender will file a claim for the difference.

[VeeDubNut]

If you're in a 100% plan, the extra could account for your trustee's and attorney's fees, although the fees would be quite high.

This...

I was thinking that $10K in fees seemed a bit steep, and this almost makes me feel like this lawyer is here merely to take my $$$ - or am I going into this with unrealistic expectations?

[May2014]

When the house sells, if there is a deficiency it will be considered an unsecured creditor, so it would be paid until the 60 months run out and then discharged. At least, that's how it will go in our case. Your attorney will be paid through the plan (ours gets $3k), the Trustee gets his fees (ours is 4.75%), and there will be interest accruing on your your balance (ours is 4.75%). The math adds up pretty quick. I HAVE read about people getting discharged early because everything was 100% paid back! but that's only what I've read, not experienced. And if the house leaves a deficiency, you're probably in it for the long haul.

[VeeDubNut]

I think I am starting to make more sense of it the more I look at it. And I think I may have even answered my own question in my initial statement.

House left to ex spouse to be responsible for. (Its in foreclosure now) So there has obviously been a good amount of time gone by that no $$$ has been paid.

If Im not mistaken, mortgage arrears are pretty much priority in a BK (regardless of the status of the house) no? If thats the case, that makes a bit more sense.

I also need to revisit my sched J form. I dont think I really sat down with it and worked it out.
Thanks for the replies folks! And thanks for this forum!

[LadyInTheRed]

You only pay mortgage arrears on a home you are keeping. Since you are not keeping the home, the bank will file an unsecured claim on the deficiency.

Your plan payment will be based on your dmi, your income minus your reasonable and necessary expenses. If you have any non-exempt assets, your dmi must be high enough to support a plan payment that will pay to unsecured creditors an amount at least equal to the value of non-exempt assets. Your plan payment will be used to pay whatever attorney fees are paid in the plan, the trustee fees, secured debt for property you are keeping (i.e, your car loan unless your payments are current and you make that payment directly to the creditor) and any other priority claims. What is left goes to pay general unsecured creditors. If attorney and trustee fees and all approved claims are paid in full, your plan will end, even if it is before 60 months. If you pay more than is necessary to pay 100% of claims, you will receive a refund. You will not pay more than you owe plus attorney and trustee fees, now matter how much you can afford to pay.

Trustee fees may vary but are capped at 10%. Fees are also capped by a maximum salary which is currently $145K. If a trustee disburses enough funds in all cases to reach that cap, the fee % will be reduced. I am more than 4 years into my plan. The trustee fees vary each month, but the total to date is just under 5%.

If you aren't happy with the attorney you consulted with, consult with more. In fact, consult with more in any case. Some may view your case differently than others.

[dmc-2008]

.....I am more than 4 years into my plan..... Omg that is so great! I can't wait to type that!!!!

[LadyInTheRed]

.....I am more than 4 years into my plan..... Omg that is so great! I can't wait to type that!!!!

I know the feeling. I remember early on in my plan reading posts by people who were 4 years in. I was so envious. Now I'm envious of those who post about making their last payment and are worried about when they will be discharged. I don't plan on worrying about the timing of my discharge. I'll just be happy when I make that last trip to the post office to buy a $500 money order. April 15, 2015 can't come soon enough!