Very disappointed with Chapter 13 news

[mdj31]

I have credit card debt and a second mortgage that is unsecured. I live in the residence with my family. I am wondering in anyone can give me an idea of what the payments would be around if a chapter 13 was approved. Right know my house is worth 225,000. My first mortgage is 227,000. My C/C debt is 22,000 and my HELOC (second mortgage is 66,000. TIA

[Moe Bedard]

In order to have your questions answered.................the best thing that you can do is to sit down with a BK attorney and have them go over all of your concerns and answer any of your questions that you might have about BK and the impact it will have. The initial consultations with BK attorneys are usually for free.

[mdj31]

Thanks ***

I will do that and try to keep everyone posted on the outcome.

[mdj31]

Loan#1 226,000
HELOC 66,00
Payed 260,000 for the house
House is worth between 200,000-220,000.


I got legal advice today and was told that chapter 13 was not a good option for me. They said the household income is way to high (90,000) and we would have to pay back 100% over five years. We net 5,800 a month and the bills are 5,200. I was told that for my 23,000 debt for my credit cards alone the estimate payment would be $443.00 for sixty months (five years). If we included the 66,000 HELOC the estimate payment was 1438.00 or sixty months (five years). They said I don't have enough debt. They also say the HELOC is not unsecured. On there second offer for all of the 89,000 debt I would have to borrow between 800-1000 to make the c13 payment.

[snapple candy]

I would consider getting a 2nd opinion.

[snapple candy]

Md, forgot to tell you to watch for vote tomorrow in house of reps on bankruptcy legislation: I just received this today:


Help Families Save Their Homes
Take Action!

Call today to support mortgage modifications

On Thursday Feb.26th the U.S. House of Representatives will vote on whether to allow bankruptcy court judges to modify a homeowner's mortgage and save thousands of families from foreclosure.

Lenders can modify a mortgage on a vacation home or a boat, but currently do not have that option for a family's home. Let's tell Congress we suppport helping families stay in their homes - without spending one cent of taxpayer money.

Please call your representative today and ask them to Vote For H.R. 1106 .

[jhn_plsn]

Originally Posted by mdj31

We net 5,800 a month and the bills are 5,200.

Honestly your not in to bad a shape. Easy for me to say but it just looks that way. Google the means test for BK and you may not even qualify for a BK as your income is to high.
Have you used the form letters here to see if your mortgage holders would modify? I would not expect any principal to be written down but if you could lock in fixed interest rates and a better payment you could better insure them that they would recievr the expected payment. Worked for me on the 1st but still working on the 2nd.
Good luck to you.

[lugson]

Originally Posted by mdj31

Loan#1 226,000
HELOC 66,00
Payed 260,000 for the house
House is worth between 200,000-220,000.


I got legal advice today and was told that chapter 13 was not a good option for me. They said the household income is way to high (90,000) and we would have to pay back 100% over five years. We net 5,800 a month and the bills are 5,200. I was told that for my 23,000 debt for my credit cards alone the estimate payment would be $443.00 for sixty months (five years). If we included the 66,000 HELOC the estimate payment was 1438.00 or sixty months (five years). They said I don't have enough debt. They also say the HELOC is not unsecured. On there second offer for all of the 89,000 debt I would have to borrow between 800-1000 to make the c13 payment.

Just curious, did you seek out a second opinion? We have the following situation:
1st = 282k (now worth 255k)
2nd= 40k

We bring in 100k per year, but were told we would be good candidates to have our 2nd mortgage stripped... We are however seeking a 2nd opinion to make sure we are getting good info. I also have not gotten an example of what our payment would be (my fear is the pymt would be huge - leaving us in the same boat we are in now). I know the first attorney thought we could do the 4 year plan.

[mdj31]

I did not get a second opinion yet. Glad to read there still my be a possibility of chapter 13. I will keep you posted. Please let us know and thanks.

[franklinco]

Originally Posted by snapple candy

Md, forgot to tell you to watch for vote tomorrow in house of reps on bankruptcy legislation: I just received this today:


Help Families Save Their Homes
Take Action!

Call today to support mortgage modifications

Please call your representative today and ask them to Vote For H.R. 1106 .

I have been writing to our representative since HR 3609 was proposed. Pat Tiberi voted against it. Thankfully the legislation passed to spite him. The bad thing is the partisan stance on the issue. Tiberi was a Realtor before so should know better than to vote against the legislation.

[franklinco]

Originally Posted by mdj31

I did not get a second opinion yet. Glad to read there still my be a possibility of chapter 13. I will keep you posted. Please let us know and thanks.

What the situation is with chapter 13 is that if you make over the median income you pay your income which is over the fake allowances from the IRS standard to your lenders. You have to fill out a form if over the median income that uses standards for cars, clothing, utilities, food and other items. The table for the latest values is pasted below. If you google "doj median income" you can find the other standard allowances for cars, utilities, health care and other standards. When I figured them out the expenses weighed in around $3000 so I would imagine that the income over $3000 would fall under the classification to use to pay back the unsecured creditors. I don't know since I was a below median income filer so did not need to fill out the standards. I filled them out only to see what the values would be.
The allowances are $489 for each car. $366 for operating expenses combined for both cars. The values for housing are $413 for non-mortgage expenses and $986 for two person families in my county. A small amount for medical expenses. Around $986 for food and clothing for a family of 2.

It would be best to check out the site I mentioned for a google and fill out the 22A for Chapter 7 or 22C form for chapter 13.