- Filed Ch. 13 Dec '09
- Voluntary Dismissal Mar '10
We filed right after I started a 2nd job - to prevent foreclosure though it had not started yet. Looking back, we rushed things a bit. We immediately ended up in a big automotive mess where the engine died (less than 3 weeks after filing) on one financed vehicle (was not worthwhile to fix) and the transmission went out on the other (was worthwhile to fix). I came to the conclusion that our attorney had good intentions, but very little ch. 13 experience. So ultimately we decided to dismiss, get some things straight, and file again at some point in the future.
Where we are now: have a basic cash car, but something that will not last very long. The transmission on hubby's vehicle was fixed with income tax refund $. Trying to get a reliable vehicle for me - I want a used hybrid as it could save me $200-300 a month in gas. Really! I drive alot between my day job commute and my 2nd job is delivering pizzas. Have had issues thus far with getting approval (shocker). Saving up some money over the next few months will help, as I figure a larger downpayment should lead to financing approval. (I'm actually driving a Prius now w/ a dealership that is trying to workout financing for me - but I don't know that it will happen so I could have to return it this weekend.)
Income is up - I am making pretty good money at the part time job. Has been more than we originally expected - we filed right after I started and I was not working many hours yet as I was still training. Anticipated ~$100 per week total based on 10 hrs a week. Now I regularly work 4-5 nights a week, net of $700-800/mo tips & paycheck.
I have started the process for an in-house loan mod w/ Bank of America. Don't qualify for HAMP as mortgage is not 31%+ of our gross income. Have been told it should take 30 days and I should end up w/ the past due balance adding to the principal, and rate reducing to 2% initially but stepping up to 5% max. Now we're at 6.95%, fixed. I figure there is no harm in trying, though I don't have high expectations for anything quick and easy. At the moment though my mortgage is no longer in a collection status, next update on the mod expected 5/19 or later.
I have a new attorney - someone more experienced in 13's. And someone who seems genuinely interested in working with me. (And impressed that I'm fairly well versed in the process, and organized in my paperwork.) We will ultimately file ch. 13 again. Once & for all. No other way plausible to resolve our unsecured debt, unless we win the lottery. Only problem there is we don't buy tickets! (Not eligible for 7 by the way.) If the mod works out, then we'll probably be able to manage a 36 mo plan (under median; with current mortgage payment & level of priority debt can't pay enough to resolve in 36 mo) since there will be less priority debt to pay and we'll have more DMI. If the mod doesn't happen, hopefully we can get my transportation issue resolved in the meantime. Pretty much, saving mortgage payments and everything 'extra' for a downpayment.
Worst case scenario is that the mod fails, can't get a car loan, and we end up having to refile on the eve of foreclosure. If that happens, then we will have saved up a decent chunk of cash intended for a downpayment and I'll just have to do the best I can to turn that into reliable transportation without a loan.