Happy_Ira and the US Trustee. UPDATE! 707(b)!!

[NowImDownInIt]

Sorry so many posts but I keep leaving stuff out. You would have to file a motion with the court to have it removed, but really what they'll do is convert it to unsecured debt and it will be paid along with the rest of unsecureds at a percentage through the plan.

[happy_ira]

If your house is worth less than the amount of your first mortgage than the second can be stripped. That could potentially free up $840 for a Chapter 13 payment.

"Potentially"? The home was appraised by a third party appraiser at $400k and the first mortgage is $397k; the second is $105k.

What can I do to file to get rid of the second mortgage? Can someone advise the specifics? I will be doing this Pro Se as i am now without an attorney.

[NowImDownInIt]

If you can find an appraiser that will appraise it under $397k with comparisons to other houses in the area you can file a motion with the court to have the 2nd mortgage made into an unsecured debt... Let me see if I can find an article on this.

[NowImDownInIt]

http://ezinearticles.com/?Removal-of-a-2nd-Mortgage-Through-Chapter-13-Bankruptcy&id=1405989

[happy_ira]

If you can find an appraiser that will appraise it under $397k with comparisons to other houses in the area you can file a motion with the court to have the 2nd mortgage made into an unsecured debt... Let me see if I can find an article on this.

Thanks - I am going to post a question in another thread. I need to understand the exact steps to follow to do this.

[NowImDownInIt]

Post it in the Ch 13 forum... justbroke is pretty helpful with these kinds of things.

[biotechsolution]

you can only remove the 2nd in a chapter 13.

I"ll be honest you really have your work cut out to sell double the state mean in income and qualify for a 7. You most likely will have to get medical personel to supply notarized statements for testify that she does need $2000/week in care.

The UST has already filed the motion, that was what you saw on PACER. Your options now are fight it at the hearing in front of the judge. Which is sounds like he mentioned you already have. Either the judge will side with you. That's why you need to have everything ready supporting your expenses and court cases supporting your position with a disabled child.

I don't think just receipts are going to work. You're going to have show why your child needs the $2000/week care. Not just because the insurance company paid that amount. This is most likely why your attorney did want to fight the UST, it's going to be quite a bit of work. The judge may also ask for current bills of the $2000/week since the insurance ran out.

You will be given the option of converting to a 13 or dismissing it alltogether. You could then refile at a later date if you can then qualify for a 7. If you do convert then you will have another 341 with the chapter 13 panel trustee.

I was in your same shoes, double the income for my state but mine was a business bankruptcy so the trustee didn't have an objection to play under 707(b). Even though I had $20000/year school tuition for an 8 year old, started when she was 5, there was nothing to object to since my schedules showed no extra income. But I still had to show all receipts and expenses.

The worst thing that can happen is you get pushed into a 13 or refile later.
But you won't know unless you fight it.

One last question. How much was your unsecured debt? Did most of the debt accure after the insurance benefits of $2000/week ran out? If you can show that you had to use credit cards to survive when you had to start paying $2000/week it might be a shot. The problem will be is that you weren't paying the $2000/week that you are now listing has expenses.

[happy_ira]

You will be given the option of converting to a 13 or dismissing it alltogether. You could then refile at a later date if you can then qualify for a 7. If you do convert then you will have another 341 with the chapter 13 panel trustee.

If the US Trustee says "I want to convert this to a Ch 13..." you mean I have to do another 341 all over again!?!? Do I have to file new paperwork? OMG. I'm lost.

[biotechsolution]

yes. Because you will have a new trustee that just does chapter 13's. You will have to submit new schedules because instead of looking back 6 or 2 months in a chapter 13 you are doing your budgets forward for future expenses.
This is where your plan payment is generated. You must submit your first plan payment with your conversion because you'll most likely have at least a 4-6 week wait until your 341 meeting.

Chapter 13's are a real game of give and take. Most likely the trustee won't take your fist payment amount and you have alittle give an take. Make sure you low-ball your fist payment amount.

[happy_ira]

yes. Because you will have a new trustee that just does chapter 13's. You will have to submit new schedules because instead of looking back 6 or 2 months in a chapter 13 you are doing your budgets forward for future expenses.
This is where your plan payment is generated. You must submit your first plan payment with your conversion because you'll most likely have at least a 4-6 week wait until your 341 meeting.

Chapter 13's are a real game of give and take. Most likely the trustee won't take your fist payment amount and you have alittle give an take. Make sure you low-ball your fist payment amount.

Makes sense. Got it. Now I'm hoping the UST pushes me to convert to Ch 13 because I might be able to include my 2nd mortgage.

I'm just unclear on a) HOW I convert on my own right now (what do I file?) and b) how I now lump in the 2nd mortgage. Anyone?!?!?!?

[Help!]

Yes - I'm going to try to keep up with my atty for now. Anyway - any thoughts on the issue at hand with 707(b)?

Yes, a few of us have been through this (see my posts to Jessegirl's audit thread). If you read through those posts and look up my old ones, I think you'll find some helpful info. Others in this forum who know the ins and outs of 707(b)... Kimba, Rfassett, getouttadebt, Yankeegirl. If you have questions, fire away - just ask them one at a time in separate threads with a clear title to make them easier for others to digest. It's not the end of the world, but it will feel like it!

[WoodSprite]

Hey, Ira - your case has gone WAY beyond my experience and ability to help, but I just want you to know that I'm following your story and sending good wishes your way...