Trying to get into a Chapter 7. We are above the family median by $36,000, but only have $15.00 in disposable income. Not enough to fund a Chapter 13. The problem is our mortgage is $2325/mo. All other expenses are within normal range on Schedule J.
We are 2 months behind on mortgage and currenty paying $1625/mo in a trail loan modification with Chase. Last trial payment will be December 1, then hopefully approved for the reduction.
Attorney suggested we decrease our income in half by wife taking FMLA for 3-4 months. She needs shoulder surgery and said this would be a good time to have it done. (Wink Wink) Then we would be at the median income level for our family of 5. But, if wife leaves job for 3-4 months, we wouldn't have enough to pay the mortgage, but could pay the rest of our expenses.
His thought is, take FMLA for 3-4 months (won't get paid while off), file for Chapter 7, get discharged, start working again after the discharge and request another loan modification through Chase.
He couldn't guarantee that Chase wouldn't start foreclosure proceedings, but he would bet they would want to work with us after discharge. We owe $288,000, probably worth $230,000 and said Chase would sell for about $140,000.
Attorney also stated that if we reaffirm the mortgage, trustee might refuse, saying we can't afford the payment and try to sell it. We want to keep the home if possible. Said it's a risk we have to think about taking.
Should we take his advise and have wife take FMLA? If we don't pay the mortgage while on FMLA, that will put us 5 months behind.
Should we wait for loan modification to be finalized before filling? If we do that,then that will give us about $700 disposable income and throw us into a Chapter 13
Since Chase told us they can't accept payments while we are in bankruptcy, wouldn't filing a 7 buy us some time until dischage, therefore putting foreclosure proceedings off until wife goes back to work?
Any advise/opinions would be appreciated.
We are 2 months behind on mortgage and currenty paying $1625/mo in a trail loan modification with Chase. Last trial payment will be December 1, then hopefully approved for the reduction.
Attorney suggested we decrease our income in half by wife taking FMLA for 3-4 months. She needs shoulder surgery and said this would be a good time to have it done. (Wink Wink) Then we would be at the median income level for our family of 5. But, if wife leaves job for 3-4 months, we wouldn't have enough to pay the mortgage, but could pay the rest of our expenses.
His thought is, take FMLA for 3-4 months (won't get paid while off), file for Chapter 7, get discharged, start working again after the discharge and request another loan modification through Chase.
He couldn't guarantee that Chase wouldn't start foreclosure proceedings, but he would bet they would want to work with us after discharge. We owe $288,000, probably worth $230,000 and said Chase would sell for about $140,000.
Attorney also stated that if we reaffirm the mortgage, trustee might refuse, saying we can't afford the payment and try to sell it. We want to keep the home if possible. Said it's a risk we have to think about taking.
Should we take his advise and have wife take FMLA? If we don't pay the mortgage while on FMLA, that will put us 5 months behind.
Should we wait for loan modification to be finalized before filling? If we do that,then that will give us about $700 disposable income and throw us into a Chapter 13
Since Chase told us they can't accept payments while we are in bankruptcy, wouldn't filing a 7 buy us some time until dischage, therefore putting foreclosure proceedings off until wife goes back to work?
Any advise/opinions would be appreciated.