Need some advice....

[Wizardree23]

I filed bankruptcy in 1999..ch.7. About a year ago my wife and I decided to have another baby. My wife got really isck and was put on bed rest. We got behind on our mortgage payments and have been behind ever since. They have been adding fees to the loan this entire time and are now deciding that they are going to start the foreclosure process. My wife filed bankruptcy before the deadline. It has been 7 years and 4 months for me and I cant file again until March. I am up for a controller position at my work, but if I take it, I will go over the median income. Anyone have any suggestions around this. I wish the new law started from day one and did not count on a previously filed bankruptcy before the new law started. We do not really want to kep the house, we are having a tough time paying for it. My wife is only working part time now. They will not go after her at all, just me. I also have some large medical bills that I have not paid. ANy advice would be helpful.

[FilingOnMyOwn]

Do you not have medical insurance where you work that resulted in all this? If not, why would you file bk again knowing you still don't have insurance coverage?

[Wizardree23]

My wife and I have insurance, but it is through her job. Its way to costly at my place of work. When she was put on bed rest, she had to stop working, and thats where the problems started. We were doing ok until we lost her income. Her insurance does not pay 100% of everything, thee are not too many insurance plans that do thse days. Im not so worried about the medical bills as I am about the foreclosure on the home.

[maksox69]

Can somebody please help me/offer advice on filing bankruptcy/dischargement questions

Hi. I am ready to file my bankruptcy because I owe Click2Pay a lot of money (it has already been sent to collections) among other creditors. I am asking because my wife and I have never filed and I am worried that this debt won't be discharged. Does a debt that goes to collections automatically qualify for dischargement? What are the chances it will be contested once we file? You all seem to be so casual about it, no offense. I want to know if this debt will be discharged? We are current on house/car and obviously want to keep these. Do you have to wait six months AFTER taking the credit management class before filing? Please someone respond. I am really stressed out. What do I do when the collection notice/or calls come? I can't pay these people. Please help me out here. Thanks
maksox69

[keepmine]

Maksox,

Start your own thread and don't hijack someone else's thread. It'll keep the topic less cluttered and everybody gets their questions answered.

[keepmine]

Wizard,

If you can't qualify for a 7, you may have no choice but to file a if you can't come to a apyment arrangement. A 13 will stop the foreclosure and the arreage can be put into the plan at 100% payback.
Alternatively, if you have any equity in the house, sell it and rent for awhile.

[SinkingFast]

Wiz,............

Keep's suggestion to file a Ch 13 may be your best bet.

You can roll the arrears on your house into the plan and keep your house. Plus, while you're under Ch 13 plan protection, the Mortage Lender won't add any more penalties, fees, and interest on your previous lates. Whatever the balance is when you file will be the maximum you'll ever owe.

[Jenny]

My wife and I have insurance, but it is through her job. Its way to costly at my place of work.

Is it cheaper to file bankruptcy on a regular basis? It seems you can hardly afford not to have health insurance with two children.

[arkienurse]

Is it cheaper to file bankruptcy on a regular basis? It seems you can hardly afford not to have health insurance with two children.

He said he has health insurance. It is through his wife's job, as that is cheaper for them than getting the insurance through his job.
He also said their problems began with the un anticipated health problems of his wife, taking her income well before they had planned to have to do without it.

[Jenny]

My wife and I have insurance, but it is through her job. Its way to costly at my place of work. When she was put on bed rest, she had to stop working, and thats where the problems started. We were doing ok until we lost her income. Her insurance does not pay 100% of everything, thee are not too many insurance plans that do thse days. Im not so worried about the medical bills as I am about the foreclosure on the home.

It sounds like they no longer have health insurance because it was through the wife's job, but she has quit working. If I'm mistaken, please correct me.

[Wizardree23]

We do have health insurance again. My wife has had the baby and works part time. I work long hours and its hard for her to watch 2 children and work 40 hours. We are not having problems making our bills now, the problem is we cant catch up the 7 grand we are behind, mainly becuase of the interest and penalties. I have contacted washington Mutual and they do nto want to hlep us with a modification of anything of the such. They want their 7 grand in order for us to keep the house. I cant file ch. 7 again cause I filed in 1999. There should be a law about the old laws not counting towards the new laws, but this isnt the case I dont think. So I either come up with 7 grand, wont happen, or lose the house and have that on my credit report, or I can fiile ch. 13. Whcih would you choose. There is not any equity in the home. I know I will not have any credit for 5 years if I file chapter 13. If I let the house go, I have a better chance of getting credit in a couple years, because I will have the income to pay my debts if I rent for awhile, and over time, 2 years or so, I can reestablish my credit.

[Jenny]

I'm glad to hear you have health insurance. That's very important.

It sounds like your family is stretched pretty thin if you have trouble making the mortgage payments after just a few months of reduced income. Perhaps the best thing you can do for your family is downsize to a smaller or cheaper home and cut all unnecessary expenses.

Pardon me for saying, but it seems you don't understand the idea of "new law" versus "old law" regarding bankruptcy. There is a bankruptcy law. The law was modified, but it wasn't repealed. If your logic were applied regarding "old law" filings not counting toward "new law" filings, that would mean someone who filed bankruptcy in October of 2005 could turn around and refile immediately again in September 2005 since one would be "old law" and the other "new law".

[13inOR]

Wiz, if you can make your mortgage payments now, a chapter 13 would stop foreclosure and you could move forward from here. This is exactly the same place we were in, we could pay everything just fine, but couldnt catch up on the arrearages that occurred for things beyond our control, that were resolved by that point. We really wanted to keep our home though. The chapter 13 was the perfect solution to our problems, so you might want to consider it and avoid foreclosure. Then if the house isnt what you want you could always sell it when you are done. You might be in good place right now for a chapter 13 also, if you only have a small income your payments might not be much at all. But of course everyones situation is different.

[SinkingFast]

Just a rough guesstimate here, but,............ If you were to file Ch 13, you'd probably be looking at plan payments in the range of $150-$200/mo. $7K over 60 months is nearly $120/mo IF you go with a 5 year plan just on the arrears alone. Then there's the remainder of the attny's fee and the Trustee's Administration Fee in there as well. That's figuring you at 100% payback on Secured Debt alone. No CC's or anything else you might have to include in the Ch 13 plan. And, that's on top of your current monthly expenses.

If that sounds like something that's doable for you and your wife, and you really want to stay in your house, then you could consider Ch 13 as an option.

You'll really have to discuss exactly how much your plan payments would be with an attny. Consults are generally free, so it wouldn't hurt to make a couple of appointments and chat with some attnys about your situation.

[LostOne0069]

Your bank won't work with you.... but in this case believe it or not I'd try contacting CCCA or one of the other non-profit credit counseling places and see if THEY can get the bank to work with you. It would be a shame to have to declare bk over a measly $7k. I'd be trying to do ANYTHING to avoid bk again. Personally, id even let the house go, if I were you, before I'd file bk again since there's not equity you'd be losing. After all, if they're going to take it from you anyway... you could probably (depending on the laws in your state) live in the house for a few months or even longer without paying ANY mortgage payment before they could kick you out. That would give you a decent chunk of cash to do your rent deposit or catch up on your other bills.

Try the CCCA... I mean, if it doesn't work, you can always do the chapter 13 at that time.