As I understand it a ch7 removes the oblgation to pay but not the lien. I'm trying to decide between a 7 and 13. House is underwater worth ~$165. 1st balance is $226k, 2nd balance is $47k. Lawyer has me at $500/mo for 5 years in a 13. Could I do a seven and just keep current on the first? and later go back and settle with the 2nd? I'd think I could settle with them for less than $30,000, the cost of a 13 at $500/mo.
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Credit ain't Cash -
I'd file the 7 and surrender the house. Heck, even with a lein strip or a default on the 2nd you're still under water on the 1st by a signficant amount. -
I agree, your situation and mine were similiar. I filed a 13 and could not keep up with house payments and trustee payments, so I had to drop it and refile as a 7. I wish I had done the 7 in the first place.Comment
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Stay and pay the 1st. In 6 months, offer the 2nd loan 3 cents on the dollar. They will say no. The next month, call them again with the same offer. Lather, rinse repeat.
Or, better yet, bank every cent and tell them both to go whiz up a rope. Mark Stay and Pay on the Ch 7 filing, pay until your 341, and see how long it takes to get kicked out. We are in Month 10 with no Notice of Default and have banked $26,000 worth of payments so far. Will make a nice down payment in a couple of years. At the rate foreclosed houses are (not) selling here, we may be able to buy back our old house at half price in 24 months. Plus, we are negotiating a Cash for Keys settlement with the bank to the tune of $10k or so.
FYI - about 80% of Ch 13 filings fail. Do what you need to do to limbo under the Ch 7 filing bar.Comment
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