Chapter 7

[hrh25]

I had a question about chapter 7, i am getting ready to file next week or so and am behind on my first mortgage. I got a letter from the mortgage lender that i will be put under forbearance for three months and should continue to make regular payments for th next three months. When this period is over they will see if my expence (ie credit card) has decressed or my income as incressed. I was told i need to figure out whats importent to me, the credit cards or my mortgage. (I think this was a hint).

I have heard that under chapter 7 i will not be able to keep the house if the payments are behind. Is this true even if the mortgage company works something out? Also, the other question i had was that i have two cars under my name and i will only be able to keep one, both are paid off and combined have about $20,000 in equity. I was wondering if i sell the one car and pay the mortgage thats behind just before filing with this money and of course have proof that it was used to pay the mortgage am behind on only, will this be an issue with the trustee? What can he do if am using the money to pay the mortgage only? I am hiding anything and am only doing it as a last resort.

If anyone has ever been thru this or someone can guide me in this process about bankruptcy and mortgage with any knowledge.

I had discussed the car selling part with an attorney and was told the trustee's don't like that and they would be very intrested in taking the car and infact it should help my case if they do take it since am in the high income and high debt area. I do pass the means test and quilify for chapter as long as i have the house. I really do not want to file chapter 13, plus this would mean that my wife would also need to file as she is also on the mortgage.

Thanks again.

Regards

HRH

[hrh25]

Anyone???

[JollyGG]

I'd talk to a few more lawyers. Just to see what they say.

In my opinion your plan sounds very feasable, however I don't have a law degree.

Can you -
1. Sell the car and get caught up on your mortgage?
2. Stop paying any debts that will be discharged in bankruptcy?
3. Stop using credit to pay for anyting?
4. Keep the payments you want to keep (house) current?
5. Wait and file in a few months?

That way the car sale wouldn't be quite so recent and may look better when you file.

Run your options by two or three lawyers to see what they say about your situation.

[hrh25]

Thanks Jolly G,

If i want to keep the house i would need to be current on my payments inorder to file chapter 7, and if i file bankruptcy i am sure they will back out of any payment arangment they made with me and will want the whole amount of back payments right away. I thought since both cars are under my name and they will take one car anyway when i file because i can not protect it then it could help in making my mortgage payments current.

The other option i have is to file chapter 13 which i do not want to do, plus with the amount of debt and what i will have left over i can not make those payments into chapter 13.

The cars are the only thing of value i have as they are paid off. I tried getting hold of other attorneys but can not get anything this month and i need to file this month as am about to get a $10,000 bonus and do not want that to be included in my six month earnings average. I am already high income and high debt chapter 7 filer.

I could wait but would need to wait until after August and then file so not include the bonus in my earnings and have time to catch. The problem with that is i already stopped paying my cc back in September so not sure how long i have before they start lawsuits. I am being called at least 8 times a day by each creditor.

If anyone has any recomendations it would be greatly appricated.

regards

HRH