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  • Chapter 13

    I have been in a Chapter 13 for 2 1/2 years.

    I am in my late 60's and draw Social Security.

    My Chapter 13 payment is $825 and my house payment is $500.
    My income is $2400 per month.

    With rising medical cost (My wife has Lupus), rising gasoline prices, etc. I
    will not be able to keep up the payments much longer.

    What are my options? Can I just default on the Chapter 13, sell my house
    and
    pay off the Chapter 13 accounts? What will happen if I just quit sending
    the Chapter 13 payments and put my house on the market.

    I don't mind losing the house but if the court sells it they won't try to
    get top
    dollar for it will they? I think if the house sells for appraise value it
    will pay off
    the debts plus maybe $35,000. My debts on the Chapter 13 are approx.
    $28,000.
    I owe $15,000 on the house.

    My attorney just says, "better keep the play payments up....."

    Need advice. Thanks

    PS: I live in Georgia



  • #2
    Chapter 13

    How long is your Chapter 13 supposed to last? -- 3 years?, 4 yars?, 5 years?
    Is the Chapter 13 total payback amount less than the total that you owe?

    If the time remaining on the Chapter 13 is short, or if you get to kiss off
    enough debt by comleting the 13, you may want to try to find a way to
    complete it. Maybe even take on a part-time job until you can get it all
    paid off.

    If the payments are too high due to the short payback time frame, maybe you
    can refinance your house and pay off the 13. The part-time job idea might
    even help you qualify for the refi. Then you will have a lower monthly
    payout on the 30-year mortgage.

    Don't sell your house. You will regret it if you do.

    "HP" <[email protected]> wrote in message
    news:[email protected]
    I have been in a Chapter 13 for 2 1/2 years. I am in my late 60's and draw Social Security. My Chapter 13 payment is $825 and my house payment is $500. My income is $2400 per month. With rising medical cost (My wife has Lupus), rising gasoline prices, etc. I will not be able to keep up the payments much longer. What are my options? Can I just default on the Chapter 13, sell my house and pay off the Chapter 13 accounts? What will happen if I just quit sending the Chapter 13 payments and put my house on the market. I don't mind losing the house but if the court sells it they won't try to get top dollar for it will they? I think if the house sells for appraise value it will pay off the debts plus maybe $35,000. My debts on the Chapter 13 are approx. $28,000. I owe $15,000 on the house. My attorney just says, "better keep the play payments up....." Need advice. Thanks PS: I live in Georgia

    Comment


    • #3
      Chapter 13

      It is a five year. It is at 75% payback I think.

      I can't take a part time job. I have health problems along with having to
      take care of my wife full time.

      Not sure I could refinance at my age...you think?

      There are other issues with the house. It is a split level and we can no
      longer
      walk the steps very will plus it is a 3/4 acre lot that I am not able to
      keep up.

      I have had this loan for 22 years. Do you think they might refinance me?
      With a bandruptcy on the books?

      Thanks for your help.


      "Frank-Z" <[email protected]> wrote in message
      news:[email protected]
      How long is your Chapter 13 supposed to last? -- 3 years?, 4 yars?, 5
      years?
      Is the Chapter 13 total payback amount less than the total that you owe? If the time remaining on the Chapter 13 is short, or if you get to kiss
      off
      enough debt by comleting the 13, you may want to try to find a way to complete it. Maybe even take on a part-time job until you can get it all paid off. If the payments are too high due to the short payback time frame, maybe
      you
      can refinance your house and pay off the 13. The part-time job idea might even help you qualify for the refi. Then you will have a lower monthly payout on the 30-year mortgage. Don't sell your house. You will regret it if you do. "HP" <[email protected]> wrote in message news:[email protected]
      I have been in a Chapter 13 for 2 1/2 years. I am in my late 60's and draw Social Security. My Chapter 13 payment is $825 and my house payment is $500. My income is $2400 per month. With rising medical cost (My wife has Lupus), rising gasoline prices,
      etc.
      I will not be able to keep up the payments much longer. What are my options? Can I just default on the Chapter 13, sell my
      house
      and pay off the Chapter 13 accounts? What will happen if I just quit
      sending
      the Chapter 13 payments and put my house on the market. I don't mind losing the house but if the court sells it they won't try
      to
      get top dollar for it will they? I think if the house sells for appraise value
      it
      will pay off the debts plus maybe $35,000. My debts on the Chapter 13 are approx. $28,000. I owe $15,000 on the house. My attorney just says, "better keep the play payments up....." Need advice. Thanks PS: I live in Georgia

      Comment


      • #4
        Chapter 13

        "HP" <[email protected]> wrote in message
        news:[email protected]
        It is a five year. It is at 75% payback I think. I can't take a part time job. I have health problems along with having to take care of my wife full time. Not sure I could refinance at my age...you think? There are other issues with the house. It is a split level and we can no longer walk the steps very will plus it is a 3/4 acre lot that I am not able to keep up. I have had this loan for 22 years. Do you think they might refinance me? With a bandruptcy on the books? Thanks for your help.
        That's a lot to have to take into account, but I think there are probably
        some ways to work through this successfully. Unfortunately, your bankruptcy
        attorney doesn't seem to be too helpful.

        Here are some of my thoughts and ideas. Maybe one or more of them will work
        for you.

        In your original post, you wrote:

        "What are my options? Can I just default on the Chapter 13, sell my house
        and pay off the Chapter 13 accounts? What will happen if I just quit
        sending
        the Chapter 13 payments and put my house on the market."

        You owe $28,000 in debts through the Chapter 13 bankruptcy. I don't see why
        the bankruptcy trustee wouldn't allow you to sell your house and use some of
        the money to pay off the the $28,000 all at once and complete your Chapter
        13 obligation. That would end the Chapter 13 (and the $825/month Chapter 13
        payments), and you would get a discharge from the bankruptcy court. So,
        there would no reason to default on the Chapter 13. On the other hand, if
        you were to default on the Chapter 13, instead of owing only 75% of your
        past debts, you would owe 100%.

        You mentioned that the split level home and 3/4 acre lot is a problem for
        you due to health issues. That would be a valid reason for selling your
        house and getting something else that would be better suited to meet the
        needs of you and your wife.

        I'm guessing that your split level home on a 3/4 acre lot is worth about 75
        to 80 thousand dollars(or a little more), since you said selling it would
        give you enough to pay off the $28,000 Chapter 13 debt, the $15,000 mortgage
        balance, and leave you with about $35,000 left over.

        I assume that also says something about the prices of real estate in your
        area -- a split level on a 3/4 acre lot is worth about $80,000. You could
        take a look at http://www.realtor.com and get an idea of other houses in
        your area you may be able to buy. You can check out one-story ranch-style
        homes on a small lot, or maybe first-floor one-story condos.

        With the $35,000 from the sale of your present house, you would have enough
        to put 10 or 20 thousand down on a new home, and get a 60 to 70 thousand
        dollar mortgage. Or, you could put a little more down and get a smaller
        mortgage. But, my vote would be to put as little down as possible -- less
        than $10,000 down if possible. The reason is that it would leave you with
        more money left over to meet other needs. And, more importantly, if you
        later have to file a Chapter 7 bankruptcy to get rid of ever-growing or
        unexpected medical debts, you could still keep your new house because the
        $10,000 equity you would have in the property would be less than the Georgia
        $10,000 homestead exemption. After a Chapter 13 discharge, you only have to
        wait 6 months before you can file a Chapter 7 bankruptcy. The only reason
        you got stuck in a Chapter 13 this time around is that you had too much
        equity in your present home and didn't want to lose that. What you did
        worked so far because you kept your home.

        As far as getting a mortgage, despite the Chapter 13 bankruptcy, if you have
        enough of a down payment and even on a fixed income, you can get a mortgage
        these days. When looking for a possible new home, also keep an eye out for
        any special housing assistance programs run by nonprofit organizations.
        Some of them have a deal with developers which allows them to provide
        special assistance to qualified applicants to help them buy a new home.
        These are usually new homes in new housing developments, and some of the
        programs even provide a grant for the down payment. You have to meet
        certain low-income and/or disability qualifications to qualify for those
        programs, and you and your wife might both qualify and be exactly the kinds
        of clients they are seeking.

        Right now, you are stuck in the Chapter 13 with the $825 payments, plus you
        are paying $500/month on a mortgage. By doing the above you could end the
        Chapter 13 successfully, eliminate that $825/month payment, and probably
        have a new mortgage payment of $600 or less.

        Good luck.
        "Frank-Z" <[email protected]> wrote in message news:[email protected]
        How long is your Chapter 13 supposed to last? -- 3 years?, 4 yars?, 5
        years?
        Is the Chapter 13 total payback amount less than the total that you owe? If the time remaining on the Chapter 13 is short, or if you get to kiss
        off
        enough debt by comleting the 13, you may want to try to find a way to complete it. Maybe even take on a part-time job until you can get it all paid off. If the payments are too high due to the short payback time frame, maybe
        you
        can refinance your house and pay off the 13. The part-time job idea might even help you qualify for the refi. Then you will have a lower monthly payout on the 30-year mortgage. Don't sell your house. You will regret it if you do. "HP" <[email protected]> wrote in message news:[email protected]
        I have been in a Chapter 13 for 2 1/2 years. I am in my late 60's and draw Social Security. My Chapter 13 payment is $825 and my house payment is $500. My income is $2400 per month. With rising medical cost (My wife has Lupus), rising gasoline prices,
        etc.
        I will not be able to keep up the payments much longer. What are my options? Can I just default on the Chapter 13, sell my
        house
        and pay off the Chapter 13 accounts? What will happen if I just quit
        sending
        the Chapter 13 payments and put my house on the market. I don't mind losing the house but if the court sells it they won't try
        to
        get top dollar for it will they? I think if the house sells for appraise value
        it
        will pay off the debts plus maybe $35,000. My debts on the Chapter 13 are approx. $28,000. I owe $15,000 on the house. My attorney just says, "better keep the play payments up....." Need advice. Thanks PS: I live in Georgia

        Comment


        • #5
          Chapter 13

          Thanks Frank.

          That really gives me some things to think about.

          I really thank you.


          "Frank-Z" <[email protected]> wrote in message
          news:[email protected]
          "HP" <[email protected]> wrote in message news:[email protected]
          It is a five year. It is at 75% payback I think. I can't take a part time job. I have health problems along with having
          to
          take care of my wife full time. Not sure I could refinance at my age...you think? There are other issues with the house. It is a split level and we can
          no
          longer walk the steps very will plus it is a 3/4 acre lot that I am not able to keep up. I have had this loan for 22 years. Do you think they might refinance
          me?
          With a bandruptcy on the books? Thanks for your help. That's a lot to have to take into account, but I think there are probably some ways to work through this successfully. Unfortunately, your
          bankruptcy
          attorney doesn't seem to be too helpful. Here are some of my thoughts and ideas. Maybe one or more of them will
          work
          for you. In your original post, you wrote: "What are my options? Can I just default on the Chapter 13, sell my house and pay off the Chapter 13 accounts? What will happen if I just quit sending the Chapter 13 payments and put my house on the market." You owe $28,000 in debts through the Chapter 13 bankruptcy. I don't see
          why
          the bankruptcy trustee wouldn't allow you to sell your house and use some
          of
          the money to pay off the the $28,000 all at once and complete your Chapter 13 obligation. That would end the Chapter 13 (and the $825/month Chapter
          13
          payments), and you would get a discharge from the bankruptcy court. So, there would no reason to default on the Chapter 13. On the other hand, if you were to default on the Chapter 13, instead of owing only 75% of your past debts, you would owe 100%. You mentioned that the split level home and 3/4 acre lot is a problem for you due to health issues. That would be a valid reason for selling your house and getting something else that would be better suited to meet the needs of you and your wife. I'm guessing that your split level home on a 3/4 acre lot is worth about
          75
          to 80 thousand dollars(or a little more), since you said selling it would give you enough to pay off the $28,000 Chapter 13 debt, the $15,000
          mortgage
          balance, and leave you with about $35,000 left over. I assume that also says something about the prices of real estate in your area -- a split level on a 3/4 acre lot is worth about $80,000. You could take a look at http://www.realtor.com and get an idea of other houses in your area you may be able to buy. You can check out one-story ranch-style homes on a small lot, or maybe first-floor one-story condos. With the $35,000 from the sale of your present house, you would have
          enough
          to put 10 or 20 thousand down on a new home, and get a 60 to 70 thousand dollar mortgage. Or, you could put a little more down and get a smaller mortgage. But, my vote would be to put as little down as possible -- less than $10,000 down if possible. The reason is that it would leave you with more money left over to meet other needs. And, more importantly, if you later have to file a Chapter 7 bankruptcy to get rid of ever-growing or unexpected medical debts, you could still keep your new house because the $10,000 equity you would have in the property would be less than the
          Georgia
          $10,000 homestead exemption. After a Chapter 13 discharge, you only have
          to
          wait 6 months before you can file a Chapter 7 bankruptcy. The only reason you got stuck in a Chapter 13 this time around is that you had too much equity in your present home and didn't want to lose that. What you did worked so far because you kept your home. As far as getting a mortgage, despite the Chapter 13 bankruptcy, if you
          have
          enough of a down payment and even on a fixed income, you can get a
          mortgage
          these days. When looking for a possible new home, also keep an eye out
          for
          any special housing assistance programs run by nonprofit organizations. Some of them have a deal with developers which allows them to provide special assistance to qualified applicants to help them buy a new home. These are usually new homes in new housing developments, and some of the programs even provide a grant for the down payment. You have to meet certain low-income and/or disability qualifications to qualify for those programs, and you and your wife might both qualify and be exactly the
          kinds
          of clients they are seeking. Right now, you are stuck in the Chapter 13 with the $825 payments, plus
          you
          are paying $500/month on a mortgage. By doing the above you could end the Chapter 13 successfully, eliminate that $825/month payment, and probably have a new mortgage payment of $600 or less. Good luck.
          "Frank-Z" <[email protected]> wrote in message news:[email protected]
          How long is your Chapter 13 supposed to last? -- 3 years?, 4 yars?, 5
          years?
          Is the Chapter 13 total payback amount less than the total that you
          owe?
          If the time remaining on the Chapter 13 is short, or if you get to kiss off
          enough debt by comleting the 13, you may want to try to find a way to complete it. Maybe even take on a part-time job until you can get it
          all
          paid off. If the payments are too high due to the short payback time frame, maybe you
          can refinance your house and pay off the 13. The part-time job idea might even help you qualify for the refi. Then you will have a lower monthly payout on the 30-year mortgage. Don't sell your house. You will regret it if you do. "HP" <[email protected]> wrote in message news:[email protected] >I have been in a Chapter 13 for 2 1/2 years. > > I am in my late 60's and draw Social Security. > > My Chapter 13 payment is $825 and my house payment is $500. > My income is $2400 per month. > > With rising medical cost (My wife has Lupus), rising gasoline prices,
          etc.
          > I > will not be able to keep up the payments much longer. > > What are my options? Can I just default on the Chapter 13, sell my
          house
          > and > pay off the Chapter 13 accounts? What will happen if I just quit
          sending
          > the Chapter 13 payments and put my house on the market. > > I don't mind losing the house but if the court sells it they won't
          try
          to
          > get top > dollar for it will they? I think if the house sells for appraise
          value
          it
          > will pay off > the debts plus maybe $35,000. My debts on the Chapter 13 are approx. > $28,000. > I owe $15,000 on the house. > > My attorney just says, "better keep the play payments up....." > > Need advice. Thanks > > PS: I live in Georgia > >

          Comment


          • #6
            Chapter 13

            "HP" <[email protected]> wrote in message
            news:Yrjuf.339$%[email protected]
            Thanks Frank. That really gives me some things to think about. I really thank you.
            You are very welcome.

            I'm sure you'll get this worked out.

            Good luck.


            Comment


            • #7
              Chapter 13

              A refi is a possibility. So is selling the house through the bankruptcy.
              Depending on the details of your case, you may be able to modify your
              Chapter 13 Plan to lower the monthly payments.

              It sounds as if your attorney has lost interest in your case. You may want
              to consult with someone new to get some ideas as to what would be right for
              you. I'd recommend finding someone who is a member of the National
              Association of Consumer Bankruptcy Attorneys--there's a listing for Georgia
              at http://www.nacba.org/dbsearch.htm.

              --
              Brett Weiss
              [email protected]
              www.brettweiss.com

              Maryland, DC and Federal bars
              Member, National Association of Consumer Bankruptcy Attorneys

              --> Read our Bankruptcy FAQ at www.brettweiss.com/faq/br_faq.htm

              Justice consists not in being neutral between right and wrong, but in
              finding out the right and upholding it, wherever found, against the
              wrong. —Theodore Roosevelt

              Required disclosure and notice: We are a federally-designated debt relief
              agent, proudly helping people file for relief under the Bankruptcy Code
              since 1983. Pursuant to 11 USC §§ 342 and 527, we are required to provide
              certain notices, which may be found at www.brettweiss.com/faq/br_faq.htm.

              ************************************************** ***************
              The Small Print: This response is for discussion purposes only.
              It isn't meant to be legal advice and you shouldn't treat it as
              such. If you want legal advice, speak with a local lawyer
              familiar with your state's laws who can review *all* of the
              facts and the law applicable to your situation.
              ************************************************** ***************
              "HP" <[email protected]> wrote in message
              news:[email protected]
              I have been in a Chapter 13 for 2 1/2 years. I am in my late 60's and draw Social Security. My Chapter 13 payment is $825 and my house payment is $500. My income is $2400 per month. With rising medical cost (My wife has Lupus), rising gasoline prices, etc. I will not be able to keep up the payments much longer. What are my options? Can I just default on the Chapter 13, sell my house and pay off the Chapter 13 accounts? What will happen if I just quit sending the Chapter 13 payments and put my house on the market. I don't mind losing the house but if the court sells it they won't try to get top dollar for it will they? I think if the house sells for appraise value it will pay off the debts plus maybe $35,000. My debts on the Chapter 13 are approx. $28,000. I owe $15,000 on the house. My attorney just says, "better keep the play payments up....." Need advice. Thanks PS: I live in Georgia

              Comment

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