Thinking about refinancing b4 filing

[guitarman1908]

I know there are a lot of ppl on this site that are worse off than I. I am in the middle of refinancing my home and I have been making minimum payments on my CCs.

I realized that after my tax return I MAY be able to knock a CC out maybe 3 depends. Bottom line, I am sick and tired of paying on these cards and I will be 60 in another 10 years so I am thinking on taking out a 15 year mortgage instead of a 30. I would like to be out of debt b4 I retire.

So, is it wrong to do a 15 yr loan instead of a 30 knowing I will just be adding my disposable income I WOULD have towards my mortgage in a new loan rather than taking out a 30 year loan and face a chapter 13 or not being able to file at all. Right now, after I pay my bills I am lucky to have $200 to pay for my childrens extras like cheerleader and karate


I hope this makes sense

[guitarman1908]

Not sure if this matters, I have not spoken to an attorney yet nor have I quit paying on my bills. Some medical bills are in collection already and my rental property will be in foreclosure sometime this year

[Trixie007]

From our side of things, that sounds like a good plan! I would check with an attorney or three (anonymous calls from blocked number?) to see how the Trustee might view that. Someone else may already know this and be along soon I'm sure...

[mintz]

I am not sure if the attorney/trustee looks at your bank statements or you actual statement (cdd, mortgage, electrical etc..)??

If you did a 30 and lets say your payment is $1000 a month, why not pay $2000 a month. Unless he does look at your actual statement. I really do not know. Maybe someone else can chime in

[keepmine]

You've an economic reason to choose a 15 yr. mortgage as opposed to 30. A lower interest rate and the home will be paid off sooner.
No fraud there. Just be sure you can handle the higher payments.

[Flamingo]

Not sure if this matters, I have not spoken to an attorney yet nor have I quit paying on my bills. Some medical bills are in collection already and my rental property will be in foreclosure sometime this year

In order to file Bankruptcy of any chapter, you have to be insolvent (broke). It appears you are not at that stage but are having cash flow problems due to some debt, some of which you will be able to pay off via the refinancing and a tax refund. Will that refinancing open up cash for you or will the higher payments on a 15 year mortgage (which, as stated by another poster, is better for you time wise) keep you where you are? It appears you have high medical bills and have given up on the cost of the rental property going into foreclosure.

It would be to your benefit to get a consultation with a BK attorney to find out how you stand financially as to your plans and your present bills. It never hurts to ask to get a professional opinion on any situation. Armed with that information which will apply to the state in which you reside, you will be better informed to make correct decisions. It may turn out just letting that property go and just dealing with a foreclosure and your refinancing may put you in a better spot as to cleaning up those medical bills without filing. It all depends on your entire situation of the amount of your debts compared to your income and assets, none of which you list.

[Flamingo]

From our side of things, that sounds like a good plan! I would check with an attorney or three (anonymous calls from blocked number?) to see how the Trustee might view that. Someone else may already know this and be along soon I'm sure...

No reputable attorney will give free advice to a stranger or non-client over the phone or via email. In order to get a consultation (either free or paid for), you have to call and get an appointment and go into their office with hard copy information.

[guitarman1908]

mintz says something that makes a little sense. Can someone answer that question.

I am not sure if the attorney/trustee looks at your bank statements or you actual statement (cdd, mortgage, electrical etc..)??

If you did a 30 and lets say your payment is $1000 a month, why not pay $2000 a month. Unless he does look at your actual statement. I really do not know. Maybe someone else can chime in


by taking out a 15 year mortgage it WILL NOT have extra money as it will cost me more and cause me to not pay other bills. I just want a fresh start

[StartingOver08]

Well, I had to provide the bank statements AND the actual mortgage statements, cc statements and utilities etc. I would think that is normal for any filing.

The Trustee is looking for money and assets that can be converted to money.

When you file, if you have just refinanced, you WILL have to provide the new mortgage note, settlement statement and receipts for proceeds if you got cash out from the refi.

[Flamingo]

mintz says something that makes a little sense. Can someone answer that question.

I am not sure if the attorney/trustee looks at your bank statements or you actual statement (cdd, mortgage, electrical etc..)??

If you did a 30 and lets say your payment is $1000 a month, why not pay $2000 a month. Unless he does look at your actual statement. I really do not know. Maybe someone else can chime in


by taking out a 15 year mortgage it WILL NOT have extra money as it will cost me more and cause me to not pay other bills. I just want a fresh start

I am assuming Mintz is discussing a Chapter 13 not a "30." Payments in a Chapter 13 plan are not the filer's decision but decided by the Trustee after reviewing all of your filing information. The attorney gathers that information, goes over it and files your proposed Plan with the Court. If the Plan you propose is approved, the Plan will be confirmed. The Trustee can look at any information he/she wants to, and that includes other paperwork besides actual bank statements.

[Trixie007]

No reputable attorney will give free advice to a stranger or non-client over the phone or via email. In order to get a consultation (either free or paid for), you have to call and get an appointment and go into their office with hard copy information.

I'm not sure about that... due to my medical issues, I did one of my free consults over the phone. I had an appointment, was told what numbers to have ready, but we did everything over the phone. Obviously I gave my correct info, but...

[Flamingo]

I'm not sure about that... due to my medical issues, I did one of my free consults over the phone. I had an appointment, was told what numbers to have ready, but we did everything over the phone. Obviously I gave my correct info, but...

If an attorney gives and advertises free consultations over the phone, by all means that is a free consultation if you had an appointment to do so. I am indicating that if you call an attorney out of the blue looking for information, you will be asked to make an appointment. They just do not give out free information over the phone or via email for a "cold call."

[keepmine]

You don't have to be insolvent to file bk. Many of us have filed and due to exemptions emerged from bk with a positive net worth. I was able to exempt the equity in my home, my IRA and 401K plus, personal property. I was discharged with a net worth of about $90K.

[Flamingo]

You don't have to be insolvent to file bk. Many of us have filed and due to exemptions emerged from bk with a positive net worth. I was able to exempt the equity in my home, my IRA and 401K plus, personal property. I was discharged with a net worth of about $90K.

What is meant by "insolvent" is at the time of filing, your debts are more than your assets. The exemptions are not in place prior to you filing and one are at a different place at that moment (i.e. broke or insolvent and cannot pay your bills). BK offers a lot of protection if you file as you and others have found out.

[HHM]

I would not make a 15 year commitment just so you can file BK. You really need to look at the deal from a purely financial point of view. Can you afford it, i.e. is the house payment less than 28% (preferably less than 25%) of your gross monthly income? If the answer is no, you will need to look at a longer term loan.

But to answer your questions, there is absolutely NO problem with you refi'ing your home on the eve of BK, and if that increases the payment, so be it. However, there is an upper limit on how high you can go (but that depends on the housing/rental market district by district). Court's will deny an unreasonably high payment.