Another Queston For You

[ARO96]

I am really beginning to get frustrated here trying to understand this while BK process. Hubby is at work today and heard something, attorney is not in today due to holiday, hopefully one of you guys can give me the answer cause I'm getting stressed here. ARGG!!!

This is the situation. I'm behind on mortgage payment. I owe August and Sep plus some late fees totalling a few hundred dollars. This friday I wll be paying the August Mortgage, which means I will be still owing the Sep and late fees. My hubby was told that we have to have the Sep mort and late fees caught up before we file the Chap 7. I was hoping to file this week with the money we will make from selling the motorcycle (planned on giving that money to the attorney), but if this is correct, should we give this money to the mortgage company and delay filing? It will take another couple of months to make the money for the attorney if we have to do this. Don't think we can wait another couple of months due to the fact that as of today I owe two car payments totalling $1200 and I'm trying to avoid repo on the car til after we file.

BTW, we are planning on keeping the house in the filing.

Also, can we borrow money from a family member to pay the house, or will that really screw us later on?

Any help would be greatly appreciated. Thanks.


See what happens when you are stressed, I just realized this is in the wrong forum. So sorry. Mods if you are on, could you please move? Again, sorry about that. [No problem, ARO - your thread has been moved -lrprn]

[CATCHMEIFYOUCAN]

I don't have any assets, but just from reading through the forum you must be current on your mortgage. As far as borrowing money from a family member make sure you tell them not to be expecting it back anytime soon. Can you pay your lawyer in increments? IF you were in a Ch13, some lawyers have part of their fees paid back through the 13, however, Ch7 would be different.

Best Wishes, Others will chime in here shortly!

Catchmeifyoucan

[ARO96]

I don't have any assets, but just from reading through the forum you must be current on your mortgage. As far as borrowing money from a family member make sure you tell them not to be expecting it back anytime soon. Can you pay your lawyer in increments? IF you were in a Ch13, some lawyers have part of their fees paid back through the 13, however, Ch7 would be different.

Best Wishes, Others will chime in here shortly!

Catchmeifyoucan

Thanks. We are filing chap 7, so that means we have to pay everything to attorney. I'm thinking we may have to sell the motorcycle, get caught up with the mortgage and somehow find another $1200 for the car. This will buy us some more time so we can find money for the attorney.

Really getting stressed. Completely out of options. If I borrow money from a family member, we will have to tell them why, I was hoping to avoid that. I do know if we borrow, we have to wait some time before giving it back, not sure how long though.

Thanks again.

[JollyGG]

You first need to get caught up on the house. If you are letting the car go then don't pay it, just let it go.

So right now it looks to me like you need to sell the motercycle, get caught up on the house, and then pay the lawyer. In that order. Is there anything else you can sell that would get you the lawyers fees?
If you barrow the money from family, it needs to be understood by the lender that this debt is techinically discharged in bankruptcy and would therefore be a gift. You can make a private agreement to pay them back after discharge if you wish.

[ARO96]

You first need to get caught up on the house. If you are letting the car go then don't pay it, just let it go.

So right now it looks to me like you need to sell the motercycle, get caught up on the house, and then pay the lawyer. In that order. Is there anything else you can sell that would get you the lawyers fees?
If you barrow the money from family, it needs to be understood by the lender that this debt is techinically discharged in bankruptcy and would therefore be a gift. You can make a private agreement to pay them back after discharge if you wish.

You are right on the mark.

I owe 1800 to attorney to get it started. Motorcycle should make close to 2000. Need another 1200 for mortgage. I have a couple of items I can sell, should make close to 1000 on them. Would still need another 200 for sep mort, and I owe about 500 in late fees on mort. Not sure if late fees on mort is included in the "up to date on mort thing." Calling my attorney asap in the morning to find out.

Thanks for the help. About ready to lose my mind here. Arrggh!!

[JRScott]

Yes you will need to be caught up on the mortgage. I realize you probably wanted to avoid the hit on the credit report by keeping the car as long as you can but I'd just let it go and take the hit.

Take the 2000 from your motorcycle and get the mortgage caught up. (I don't know if you need the late fees paid, glad you gonna call the lawyer ). Whatever is left after that apply to the lawyer .

Lets see 1200 mortgage + 500 late fees (if you need to pay that) is 1700. That'll leave almost 300 dollars for the lawyer. Then if you sale the 1000 dollar stuff then you'll have most of the lawyers money.

I know this is a rough time, stay calm though.

[ARO96]

Yes you will need to be caught up on the mortgage. I realize you probably wanted to avoid the hit on the credit report by keeping the car as long as you can but I'd just let it go and take the hit.

Take the 2000 from your motorcycle and get the mortgage caught up. (I don't know if you need the late fees paid, glad you gonna call the lawyer ). Whatever is left after that apply to the lawyer .

Lets see 1200 mortgage + 500 late fees (if you need to pay that) is 1700. That'll leave almost 300 dollars for the lawyer. Then if you sale the 1000 dollar stuff then you'll have most of the lawyers money.

I know this is a rough time, stay calm though.

I'm trying to stay calm, so hard though.

Here you finally make a decision to file bk, then you need all this money before you can file. Crazy.

Like I said, we have some things we can sell and that should get the mortgage up to date except for the late fees. I just hope we can work something out on the late fees, like spreading it out over a few months. Once I get the filing started, I can those late fees paid up pretty quick. So hopefully I will just need the 1200 for the Sep mortgage. Will be calling the attorney tomorrow at 8 am asap. Figures this all happens on a holiday when they are closed.

Thanks for the advice. I'm hanging in there. Although if anyone ticks me off, I may just lose it. Lol. Can see the headlines "Stressed Out Wife and Mother of 2 Loses It With Pizza Guy." Lol.

[lrprn]

ARO, since you are sure you are going to file, have you stopped paying your unsecured creditors? You can use that money to catch up on your mortgage and pay your lawyer as well.

[RickInMich]

As far as borrowing from family, how does that cause a problem? For instance, if I were to borrow money from a relative to pay the attorney, would anyone involved in the bankruptcy even need to know that?

Rick

[ARO96]

ARO, since you are sure you are going to file, have you stopped paying your unsecured creditors? You can use that money to catch up on your mortgage and pay your lawyer as well.

We just were told last week by the attorney to stop paying the unsecured creditors, so this will help later in the month.

My immediate need is keeping my car for a few more weeks, even though I owe August payment and today Sep payment, paying sep Mortgage (and possibly late fees to get that up to date), and coming up with 1800 to file.

Before we found out about the mortgage being up to date, I figured we sell the motorcycle, give money to the attorney and we can get the process started this week. Now I find out I can't file til the mort is up to date.

We have a few more things we can sell which should give us the money for the sep mort, but I won't have money for the late fees. I'm hoping my attorney will tell me just to pay the mort and late fees can be worked out later.

We are selling everything, and I want to keep the house. Kids are upset with everything we are selling, they don't understand, so I would hate for them to lose the house too.

Just can't wait to get this started so we can be done with it.

[lrprn]

My immediate need is keeping my car for a few more weeks, even though I owe August payment and today Sep payment, paying sep Mortgage (and possibly late fees to get that up to date), and coming up with 1800 to file.

If you ask your family for money, consider getting it on paper and signed and notarized that the money they give you is a gift, not a loan. The money will count into your income figures, but if you aren't close to the median, that may be ok.

If you are close to the median income for your state and family size, then consider getting the money as a loan, then discharging it. Agree behind the scenes to repay it once your bankruptcy is closed.

Be sure to run both options past your lawyer before you do anything.

Kids are upset with everything we are selling, they don't understand, so I would hate for them to lose the house too.

Although it's very difficult for us as parents to see our kids be upset, the life lessons they are learning right now will stick with them for the rest of their lives. When a family overextends financially, there are serious consequences and sacrifices will be made. They may be unhappy now, but you are helping them avoid their own financial disasters in the future. This is truly a gift you are giving them, so hopefully that makes it a little easier to see the disappointed faces now.

[CindyLou]

I'm trying to stay calm, so hard though.

Can see the headlines "Stressed Out Wife and Mother of 2 Loses It With Pizza Guy." Lol.

Hey, don't joke about losing it with the pizza guy....things can get serious with us crazy BK people! see my thread below

http://www.bkforum.com/showthread.php?t=16545

[ARO96]

Hey, don't joke about losing it with the pizza guy....things can get serious with us crazy BK people! see my thread below

http://www.bkforum.com/showthread.php?t=16545

I read your thread, it was great. Made me laugh.

[rrockinggramma]

how long before you have the money for the mortgage catch up, if you paid the attorney the 1800 he needs? you owe 1200 on the mortgage? if you would have the money before the next payment would be due, then I would pay the attorney, start the process, and then pay the mortgage as quickly as you can. The mortgage company would have to file for relief of stay to do anything and that takes some time and usually by the time the hearing is scheduled, if you are all caught up, the mortgage lender would then petition the court to remove their petition to lift the stay. Only do this if you can really be all caught up by the Oct payment.

[Boscoe]

ARO - Have you thought about life after the bk? Assuming all your bills other than house and car are discharged in your bk, will you be able to pay all your bills? Utilities, taxes, food, clothes, etc?

I have read your posts here and it does not sound 100% sure that you can. I certainly hope you can, and am not trying to add stress, but please note that the trustee will take a long look at this and will not allow you to reaffirm if he does not believe it is in your best financial interests - in other words, he will not let you keep the house and car if he thinks there is a good chance you will fall behind again in the near future.

Hopefully, you will be able to make these payments and stay current on everything else.

Keep the questions coming and hang in there. It most definitely gets better.