foreclosure started is it to late to save?

[jeff6898]

Not sure if this is the right forum. I just received a letter from my mortgage company's attorney stating the have started the process of a foreclosure. IS it to late for me to file chapter 13 to save my home since the process started? If not when is it to late?

[lrprn]

Not sure if this is the right forum. I just received a letter from my mortgage company's attorney stating the have started the process of a foreclosure. IS it to late for me to file chapter 13 to save my home since the process started? If not when is it to late?

Jeff, back in 2005 you posted here in the forum that you were in Ch 13 at that time - http://www.bankruptcyforum.com/showt...1909#post21909 . In order to help you sort out what your options are, we need to know what happened to your Ch 13 at that time.

(Btw, I deleted your duplicate post in the Ch 13 forum - you'll get the best answers by keeping everything in one thread.)

[jeff6898]

I did a voluntary dismissal in 2/06

[lrprn]

I did a voluntary dismissal in 2/06

According to the latest version of the bk law, if you had successfully finished your Ch 13, you wouldn't be able to file a new Ch 13 case for two years. However, with a voluntary dismissal more than a year ago, you can file again now.

We need more information to be able to help you decide what your best options are to save your house. What state are you in? How far behind are you on your mortgage payments? Are you married? Do you have children or other dependents? What is your total gross annual family income?

Since you've already had one Ch 13 dismissed, what is different this time so the same thing (dismissal) won't happen again?

[jeff6898]

According to the latest version of the bk law, if you had successfully finished your Ch 13, you wouldn't be able to file a new Ch 13 case for two years. However, with a voluntary dismissal more than a year ago, you can file again now.

We need more information to be able to help you decide what your best options are to save your house. What state are you in? How far behind are you on your mortgage payments? Are you married? Do you have children or other dependents? What is your total gross annual family income?

Since you've already had one Ch 13 dismissed, what is different this time so the same thing (dismissal) won't happen again?

I am in Florida

THe end of this month will make 4

I am married, I have a 13 year old, 11 year old and one due in November.
Total income is around $34,000

I did the dismisal myself because I have gotten a decent job and figured I would just pay the bills I owed on my own. (thought at the time it was the right thing to do)

LOst that job and been unempoyed for 3 months. NOw have a job make, less then before. I can still make ends meet if I can start over.

[lrprn]

Thanks for the additional information, Jeff. You are currently a family of four (you can't count the baby until after he/she is born). The FL median income for a family of 4 is $64,280 and you are well under that.

I admire your determination to save your house. However, you need to make free consultation appointments to speak with 3-4 bankruptcy lawyers in your area as soon as possible. I believe each of them is going to tell you can't pay your creditors what they would receive in a Ch 7 and at your income level, you also won't be able to support a Ch 13 plan for at least 3 years.

Your situation is tailor-made for filing a Ch 7, but in order to save your house, you have to make up the four months of mortgage payments before you can file Ch 7. Your problem is that your mortgage company has already started the foreclosure process in court, so you've waited too long to be able to gather up the money to make up the missing payments by not paying your non-secured creditors.

You need expert legal advice as soon as possible to sort out what the best options for you and your family are in these circumstances. As difficult as it is, you may end up having to surrender your home in order to get the fresh start that you need and still be able to live within what you currently make.

I wish I could be more optimistic about your situation . We want to help you as much as we can, so please keep us posted about what you find out during your discussions with bk lawyers in your area. Hopefully one can help you find a way out of this deep hole.

[jeff6898]

I am a bit confused about not being able to re pay the creditors what they would get under a chapter 7. I thought under a 7 thet get zero. I have a appointment to see a lawyer today. I will let you know what he says.
THanks for all the information. You are very helpful,and I appreciaite you taking the time to answer.

[BassBoy]

Your creditors will not always get zero $. If you are an asset case, they will get something. Usually, and from I've gathered and read here on the board, the debtor will be an asset case if there is a large income tax refund expected.

[HHM]

Honestly, what perecentage of your Gross monthly income is your mortgage payment...does your mortgage payment include propert tax (if any) and insurance).

I get the sense the house is probably not worth saving because you probably cannot afford it in the first place. And as everyone else has said, it's probably a little late in the game to try and make-up any past due mortgage payments, (especially if you have less income now than before). If you had no other meaningful debt, you might be able to do a mortgage workout agreement, but if you have any meaningful amount of unsecured debt, than you probably cannot afford a work-out agreement.

[lrprn]

Jeff, funny that you forgot to mention that you also have a discharged Ch 7 from Oct 2003 in addition to your dismissed Ch 13 from 2005. (fyi...I lurk reading other bk forums like CreditBoards daily and caught your post over there - the Ch 7 filing is right there in your sig....tsk, tsk....)

When you withhold important information like this, then you're crippling the knowledgeable folks hanging here who are trying to help answer your questions. Many of the suggestions you've already received here are now blown out of the water because of the recent Ch 7 - you can't file another Ch 13 case until November 2007 because of the revised 2005 bk law requiring four years between a discharged Ch 7 and filing a Ch 13.

Sure wish you had included this information in what you initially told us.

[jeff6898]

I really didn't think of bringing up the chapter 7. Didn't know it mattered. My mistake. Wasn't left out on purpose

[jeff6898]

THe lawyer I saw yeterday didn't mention there would be any problem at all. He was told about the 2 BK'S and the dates. GUess I need to call and question him again. Thanks for the info.

[jeff6898]

[lrprn]

Thanks for providing the different interpretation about the filing time requirement, Jeff - always good to know!

Here's the link to Jeff's posted info - http://www.************************/...r-7-discharge/

"As to whether a debtor may obtain a discharge in Chapter 13 after a Chapter 7 discharge? Well, a debtor is not eligible to receive a discharge if that debtor has received a discharge in a Chapter 7 case that was commenced within 8 years of the date of filing of the new case. That’s in section 727(a)(8) of the U.S. Bankruptcy Code."

And here's the catch for you, Jeff. It looks like you may be able to file Ch 13 again now, but since your Ch 7 was filed and discharged less than 8 years ago, you won't get a discharge from the newly filed Ch 13. However, you will get automatic stay protection and the chance to catch up any payment arrears on your secured assets - hopefully that's all you need. Be sure to bring this up with the lawyers you speak to as well.

Good luck - hope everything works out for you.

[jeff6898]

THe only thing I am concerned about is saving the home. THe rest of the stuff is my last concern. So it looks like it will accomplish what it is I am needing. Will keep everyone posted.