Feeling the pressure need some advice

[eddiep]

Lots happening lately and I can feel that it is all coming to a head and I am very getting nervous

I got served by CU, Have to appear in court on June2

Two mortgages modified waiting for paperwork to arrive on third any day now.

We are waiting to file becasue attorney was conserned that automatic stay would affect our modification.

Hubby out of work Sept, Oct & Nov., so May is perfect month for filing, June not good because of 401k loan plus income and July is fine because current income is still below median.

My question is if we are above median in June but only becasue of 401k loan, will we still be able to file bk7, or will it be a presumption of abuse?

Should I file an answer to the summons? Does that delay the court date that is already set for June 2?

Today (Sunday, Mother's Day!) I came home and there was a notice from mortgage company stuck in my door telling me to contact the loss mitigation dept. I have gotten letters in the mail saying that I am late on my payment and to contact them, when I do and explain that I have been approved for mod they say that the letter was computer generated and does not know that I have been approved, don't worry about it, everything is all set! So I know that I have to be current on my mortgage in ch7, do you think there will be a problem since mortgage company thinks I am late in the computer?
I do have it in writing that my next payment is not due until June 1st.

Last question! I saw on here that you need to make sure your lien has been filed properly (on a car at least) prior to bk, does a modification affect the lien? And do I need to wait to file until I am sure the lien has been filed?

I am so stressed out!!!!

[JRScott]

Keep the paper saying that you don't owe til June 1st, that is evidence.

I'd call them up and tell them of the other notice and ask when it might reflect properly in their computers about the modification.

If necessary and you can I'd just wait and file and July if you miss May. If you reply to the summons it'll buy you maybe 30-45 days. The trick is to time the response such that you get the maximum amount of time. Generally sending it certified mail return receipt requested so that you have proof. So time it so that it arrives on the last day that you are allowed to respond . That slows them down a bit, I never had a specific court date in mine so not sure that would affect the court date, you probably could contact the clerk of court of the courthouse you are to appear and ask. In your response you might ask to see the note where you signed to affirm the debt as a delay tactic.

However keep in mind even if they get a judgment that says you owe x amount. That's only generally the first step. There is then a disposition phase and then the actual garnishment/levy phase which can take depending on state a few weeks to another month or two.

[eddiep]

JRScott
Thank you, I spoke with my lawyer this morning and he said the same thing about delaying the court date with a well timed response. He said to bring the summons to him and we will send a letter if modification is not done in time.

I spoke with bank again today, they said they do not know why I recieved notice that my payment was late again. He could "clearly see" that my loans have been approved for modification and was able to tell me the status on all three. "Don't worry" yeah right! He said that my payments are not being reported as late. He did say that the third and final mod was being written and would send an email to the processor handling the documents and ask him to expedite the process and that he would hope to have it sent out to me this week.

I also spoke to my lawyer about the mod, and again he said the same thing as you, since I have the terms of the modification in writing, I am all set. He said that this was a legally binding contract and they have to honor it. I love my lawyer!

Thanks again!
He also said that there would not be any problem with filing the deed, it is not the same as a car loan.

[poorold]

why is a 401K loan considered income?

wouldn't that also mean that credit card advances are income too?

or if you paid your mortgage payment with a "check" from the credit card company, is that "income" too?

[dingdong]

I think it is because the 401K money was pre tax money from your pay.

Not really someone elses money you are borrowing.


So it is income in the first place,that you are borrowing against.

I could be wrong though, but I think that is the rational for it being income.

[eddiep]

I dont know how to link to another post but I did just read a post about this apparently this is a district by district issue?

The title of the thread was:
IRA Withdrawals Are Not “Income” in Bankruptcy