First Post

[Overthetop]

Hi,

I am behind two months on my mortgage and have about 25K on 5 different cards. I have not used the cards for about a month or two.

I live in Arizona.

Should I wait to file for a little bit or try to pay the mortgage with some of the money I was going to pay the cards with...??

I am really confused. Any help would be appreciated.

Thanks.

[FreshLikeADaisy]

Hi Overthetop! If you definitely know that you are going to file Ch7, having made that decision many people also decide to stop paying credit cards and other unsecured debt; it's sort of throwing good money after bad because those debts will be discharged in bk and the cash can be used for better things, like paying an atty. Just make sure you stop using the cards when you stop paying them.

As far as paying the mortgage, I guess that would depend on whether you intend to keep the house, or you intend to surrender it to the bank. I'm not real clear on the details of how current you have to be on your mortgage in order to keep it in bk, but I'm sure someone else here will answer your question.

[Overthetop]

Hi Daisy!!

Yeah I thought I could pay them off... was late and the rates went up... got behind.

I make pretty good money though - how do I know if Chapter 7 is what I need to do.

The house is a disaster! Going down in value...I have a first and 2and (I/O on second)...no way I can sell for what I owe.

Thanks for replying!

[FreshLikeADaisy]

Well, the decision between 7 and 13 really depends on whether you have any disposable income to repay a portion of your debt, and whether what you make and your outgo in expenses exceed the average median income for your area: if you are in excess of those numbers, generally you don't qualify for a 7 and must go with a 13 (repayment plan) if you file.

However, if you file 13 and find at some point you can't make payments, then you can "convert" to a 7.

Confusing, eh?

What really helped me was to read through all the stickys at the top of each page; they explain a lot of the basics. You can also google "means test calculator" because there are a lot of sites that let you punch in the numbers and see at a glance whether you'd probably qualify for a 7 or not. The one I used --and a very helpful site all around, I thought -- was http://www.legalconsumer.com/ (please note I have no affiliation with this site, just a satisfied visitor). You plug in your zip code and go from there.

Good luck!

[Overthetop]

Thanks Daisy - I begab reading some of the stickies yesterday...I have a ways to go.

Thanks for the link.

[BKcrazy]

Are you in the general Phoenix area? Just a heads up, it may take 7-8 weeks before you have a creditors meeting. There are a ton of filings there.

[Overthetop]

Are you in the general Phoenix area? Just a heads up, it may take 7-8 weeks before you have a creditors meeting. There are a ton of filings there.

Yes I am in Mesa.

Here's a question...I have a 1st and 2nd...what if I continued to pay on the first, but took the money for the second and paid my CC? Can I be foreclosed on if I stop paying on the second?

[BKcrazy]

Are you trying to keep your property?

[Overthetop]

Are you trying to keep your property?

I would like to, but I can't pay both the house and CC.

[325Falcon]

Stop paying the CCs and make sure you stay current on the home loan.

[Overthetop]

Stop paying the CCs and make sure you stay current on the home loan.

Can I stop paying on the second and not have it foreclose if I still pay on the first?

[325Falcon]

I dont think so since the second mortgage is secured by the home. The CCs are unsecured.

[Overthetop]

I dont think so since the second mortgage is secured by the home. The CCs are unsecured.

Ok thanks.