What if you leave after Chapter7?WO.Re-affirm?

[timeouts1]

Question for billsbroke...when you filed chap 7 you included your house payment has a part of your monthly expenses? Then you were discharged, but did not reaffirm the mortgage? I am aksing because we are getting ready to file a possible Chap 7 and keeping the house which with the monthly payment helps with DMI. However, even if we are discharged I feel we may have trouble keeping up the monthly payment so we are uncomfortable going forward with reaffirmation. So I guess my question is can you file and just keep making the house payment, but not reaffirm?

[monkatom]

We included our mortgage in our chapter 7 and did not reaffirm. we planned to continue paying and did so for seven months until we realized we were digging another hole and the 4500 a month payment was too much. So we stopped paying and plan on saving all that money until our home goes up for sale.

[moneytrouble]

Yes you can continue to live in your home and make payments on it.

[2muchinDebt]

I know if we make the payments and are current on the mortgage when we file Ch 7..we can still live in the house. What happens if you can not make the payments AFTER you file, but either before the 341 and/or before discharge?

We are going to have to file very soon and Chase says we are in underwriting. I am not wanting to reaffirm because I know somewhere down the line we can't keep paying the current mortgage price and it'll readjust in 3 yrs. I want Chase to Modify this loan. DO we have to pay the mortgage through the entire CH 7 process from file to discharge?

We are pretty close to the median income. I have a job offer PT 3 full days a week and would make about $240/wk, but it'll put us over. About that....can I start the job after we file , but nefore the 341 or discharge and it not effect the BK?

Any insight would be GREATLY appreciated!

[chad9162]

What happens if you can not make the payments AFTER you file, but either before the 341 and/or before discharge?

Whether you reaffirm or don't your lender must go through the forclosure process. If you stopping paying during the BK process your lender could file for relief of stay and start foreclosure proceedings.

I am not wanting to reaffirm because I know somewhere down the line we can't keep paying the current mortgage price and it'll readjust in 3 yrs. I want Chase to Modify this loan. DO we have to pay the mortgage through the entire CH 7 process from file to discharge?

Technically, most lenders require you to be behind while trying to get a loan mod. Most Districts want you to be current on your mortgage in order to reaffirm. Some Districts won't allow ride throughs even though the BK code allows it. In order to get a ride through most Banks want you to be current. But if you are in the process of loan mod then maybe they'll let it slide.

We are pretty close to the median income. I have a job offer PT 3 full days a week and would make about $240/wk, but it'll put us over. About that....can I start the job after we file , but nefore the 341 or discharge and it not effect the BK?

The BK code says your income is the prior 6 months preceding the month you file. Also just because you're over the median doesn't mean you can't file. You would then have to look at Disposable Monthly Income (the 2nd part of the means test).

Since every district is different you need to talk to several attorneys in your area and get a feel for what's excepted practice.

[2muchinDebt]

We are meeting with the atty. tomorrow. We are in the loan mod. process and they tell you one thing one time when you call and another the next time. We could get the paperwork soon or they can jerl our chain like they have jerked some others. Haven't paid our credit card bills since Oct/Nov 2008 and some have been charged off and sold to NCO Financial or Northstar Financial Collections (who call your neighbors and every family member looking for you). Eventually (probably sooner than later) they will file for a garnsihment and we'll be forced to file.

If say, we get the modification paper tomorrow and they put us on a 3 month trial with wording in the contract that says that we cannot file BK during this 3 month trial and then DH gets garnsihed during that time. We're screwed then, I assume?

We are about $900/month in the negative so no DMI, but if I take that job it would be cutting it close and it would take us over the median income for a CH7 as well.

[chad9162]

I've never heard of a loan mod stating no BK. As for mean test you need to understand that disposable income is key. I'm over the median by like $10K but we have a lot of secured debt. Talk to your attorney and see what he thinks. It also helps to get different opinions too.

As for garnishments, I wouldn't worry. You can prolong it or delay it. Courts are backed up. When they contact you the time frame is usually 6-9 months out. Talk to the collection agency and just tell'em you're filing BK. When they continued to call ask them why and tell'em calling doesn't change the fact you're filing. Use words like harassment and how you're recording them. They'll usually call once a week at that point.

[2muchinDebt]

I think it's illegal to record phone conversations in VA where I live. It could be you have to tell them first. Our atty said not to tell anyone that calls we are filing becaue they may speed up the process of getting a judgement.

[denisejohn65]

My Lawyer said to tell them a BK would be filed in a few weeks and to stop calling. I filed on June 12th 09 and people on here have said that if I was to have a judgement by now I would have it and know about it. As far as I know...once you file they can't....cuz of the automatic stay. Anyone want to chime in to see if this is right. I have not paid my one cc since last fall. It is the highest bal I have at 12000.00 and nothing. They just sent a letter saying they are writing it off as bad debt. Whatever that means??? Does anyone know. It did go to collections.

[chad9162]

My Lawyer said to tell them a BK would be filed in a few weeks and to stop calling. I filed on June 12th 09 and people on here have said that if I was to have a judgement by now I would have it and know about it. As far as I know...once you file they can't....cuz of the automatic stay. Anyone want to chime in to see if this is right. I have not paid my one cc since last fall. It is the highest bal I have at 12000.00 and nothing. They just sent a letter saying they are writing it off as bad debt. Whatever that means??? Does anyone know. It did go to collections.

Yes, the automatic stay prevents any further collection activity during the BK process. Once the debt is discharged you are no longer liable so no one to sue.

Most creditors will write off bad debt if they can't determine your ability to pay it off. What's the point of suing you f you have no money no job. No job pretty much makes you judgement proof. The only way a creditor determines your ability to pay is through a credit report. If you're late on everything else, they assume you're broke.

It cost them money to sue you. It's easier for them to sell the debt to a junk debt or count it as a loss for the year. A collection is actually counted against the business as a liability. If they sell it off or just dump it and take the tax write off they will have less liability which makes the company look more profitable.

I think it's illegal to record phone conversations in VA where I live. It could be you have to tell them first. Our atty said not to tell anyone that calls we are filing becaue they may speed up the process of getting a judgement.

Yes, most states only require you give notice. In CA we have laws against harassing, annoying, and threatening phone calls and are allowed to record for evidentiary purpose. I always give notice and in CA we have implied consent meaning if they continue to talk to us they consented.

Our courts are 6-12 months behind so "speeding up the process" isn't gonna happen here. If you are filing soon I wouldn't worry.