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Waiting to File Ch7, BUT waitin' on Mod. 1st

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    Waiting to File Ch7, BUT waitin' on Mod. 1st

    Originally we were going to do a Ch13 because we were hoping the Bankruptcy Judge Cram Down legislation would pass, but it didn't. So now we want a CH7.

    Our lawyer said we pass the Means Tests, but almost 60 days ago we called Chase/WAMU (funny..but they had already sent out a packet for us FedEx) sent it in. About 3-4 weeks ago we got a letter saying we would hear something within 30 days or by the end of May. On May 21 we got a call from WAMU asking if we rec'd the letter about the 30 days in which we said Yes. Then they called us again asking for current paystubs for the HELOC modification as well. The HELOC and the 1st mortgage are both through WAMU. I wonder if we are getting the run around with this 30 day letter. After reading some of the stories on here I won't believe anything until it's in my hands.

    June 1 will be the first time we do not make the mortgage payment. We haven't been paying the HELOC for 3-4 months. We haven't been making any credit card payments or loan payments since Oct or Nov. 2008. Some have been charged off and gone to collection agencies. Sooner or later they will file a judgement for Garnishment (can't have that happen) in which case we will be forced to file and we want to keep the house if possible (only if they modify). I just hope a modification doesn't come too late. At what point do creditor push through a judgement?

    #2
    We are in the same boat. Stopped paying CCs in Nov/Dec as well as both mortgages. We are waiting to see if GMAC will do a mod for us before we file Chapter 7. We can afford our house if the 1st mortgage payment is reduced by even just 100.00. We plan on just letting the 2nd go with the bankruptcy and trying to settle to clear the lien at some point. We have a month prob before we even hear anything about our mod. When I called last week it wasn't in the system yet. We are in foreclosure now... our redemption period will end at the end of November. So we have until then but I want to settle us somewhere if we have to move before school starts. Also... I'm just waiting for a CC company to get a judgment. Then we will have to just go ahead and file. Which means moving into a rental and praying we can find something to fit our family. Sigh.

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      #3
      I know the wait is the worst. Just want to know so we can move forward. If you file a CH7 don't you also have to accept the payment for the 2nd? You can only strip the 2nd in a CH13.

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        #4
        Not trying to strip it. It would just go bye bye like the credit card debt. The lien would still be on the house but you wouldn't have to make the payment.

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