Posted on: 17th Mar, 2010 08:27 am
i have a first mortgage of 390k and a second mortgage of 100k total of 490k. i owe about 480k now. my home is now worth about 360k in current market. i’m current on my mortgage payments but having trouble keeping up the payments. i tried to modify my loans to lower payments but banks denied.
i have two cars on payments and they are now worth less then what i owe. i have about $120k of unsecured debt (some payments are 2-3 months behind) and $30k of student loan (also 2-3 months late and have no deferment left).
1. what are the advantages/disadvantages to add all secured assets in chapter 13 along with unsecured ones?
2. also if i can afford the payment plan (3-5 yrs) given by the court, does all of my assets' account balance and unsecured account balance be zero after the discharge?
any help will be appreciated.
i have two cars on payments and they are now worth less then what i owe. i have about $120k of unsecured debt (some payments are 2-3 months behind) and $30k of student loan (also 2-3 months late and have no deferment left).
1. what are the advantages/disadvantages to add all secured assets in chapter 13 along with unsecured ones?
2. also if i can afford the payment plan (3-5 yrs) given by the court, does all of my assets' account balance and unsecured account balance be zero after the discharge?
any help will be appreciated.
Hi jacket,
Chapter 13 helps you in reorganizing all your debts - secured as well as unsecured. While you include your debts in the bankruptcy filing, the trustee and the creditors would judge your financial situation and based on that you would get a repayment plan to pay off your dues. Once you successfully pay off your dues as per the payment plan, you would be discharged of your bankruptcy filing. Thus, your account balance would be mentioned as zero.
Thanks
Chapter 13 helps you in reorganizing all your debts - secured as well as unsecured. While you include your debts in the bankruptcy filing, the trustee and the creditors would judge your financial situation and based on that you would get a repayment plan to pay off your dues. Once you successfully pay off your dues as per the payment plan, you would be discharged of your bankruptcy filing. Thus, your account balance would be mentioned as zero.
Thanks
Hi Jameshogg,
Thanks for the information.
I'm still little confused about my mortgages...if my mortgage term is 20yrs and I have to pay it within 3-5 yrs in chapter 13, will the mortgage company allow it?
Since the market values of my home declined about 130k, does the court consider the current market values to calculate the payment plan in chapter 13?
Thanks again!
Thanks for the information.
I'm still little confused about my mortgages...if my mortgage term is 20yrs and I have to pay it within 3-5 yrs in chapter 13, will the mortgage company allow it?
Since the market values of my home declined about 130k, does the court consider the current market values to calculate the payment plan in chapter 13?
Thanks again!
Hi jacket!
Welcome to forums!
Your lender will give you the payment plan depending upon your financial situation which will help you in paying off the dues within 3-5 years. As far as I know, the lender would consider the loan amount while giving you the payment plan and not the present market value of the property.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Your lender will give you the payment plan depending upon your financial situation which will help you in paying off the dues within 3-5 years. As far as I know, the lender would consider the loan amount while giving you the payment plan and not the present market value of the property.
Feel free to ask if you've further queries.
Sussane