Posted on: 27th Jun, 2009 05:48 am
I am contemplating Chapter 7 due to a high level of unsecured debt. I believe that I also qualify for a loan modification under the provisions of the "Making Home Affordable" program.
My question is this; will filing Chapter 7 (either before or after any modification through MHA) impact any modification that I receive? I want to keep the house, as it is only the unsecured debt that I cannot service for much longer.
Thanks
My question is this; will filing Chapter 7 (either before or after any modification through MHA) impact any modification that I receive? I want to keep the house, as it is only the unsecured debt that I cannot service for much longer.
Thanks
Guest1
you have mentioned that you want to keep the house as well as get rid of unsecured debt but if you file chapter 7 then trustee will liquidate most of your assets and then try to settle down the debt. make sure you do not include the home in the BK.
keep in touch.............
:arrow: :arrow: :arrow:
you have mentioned that you want to keep the house as well as get rid of unsecured debt but if you file chapter 7 then trustee will liquidate most of your assets and then try to settle down the debt. make sure you do not include the home in the BK.
keep in touch.............
:arrow: :arrow: :arrow:
Thanks,
I am current on the mortgage (all debt payments for that matter)..... It is just that I can only continue to remain current on all bills for a few more months, before savings runs out. Since something has to give, I plan to keep all of the secured debt (home and auto) current and try to discharge the unsecured debt.
I was just curious if any consideration needs to be given to the mortgage modification process (under the "Making Home Affordable" program), regarding any impact a Chapter 7 filing would have.
Should I complete the process before I intend to file, or can I file at any time without impacting the outcome of the modification process?
I am current on the mortgage (all debt payments for that matter)..... It is just that I can only continue to remain current on all bills for a few more months, before savings runs out. Since something has to give, I plan to keep all of the secured debt (home and auto) current and try to discharge the unsecured debt.
I was just curious if any consideration needs to be given to the mortgage modification process (under the "Making Home Affordable" program), regarding any impact a Chapter 7 filing would have.
Should I complete the process before I intend to file, or can I file at any time without impacting the outcome of the modification process?
Hi guest!
Welcome to forums!
In my opinion, you should complete the Making Home affordable program. This will help you in saving the property and will also save your credit.
Sussane
Welcome to forums!
In my opinion, you should complete the Making Home affordable program. This will help you in saving the property and will also save your credit.
Sussane
you are going to do bankcrupcy but take care to not include your home in bankcrupcy .because you have to keep home to you.
Or you can take help from Home affordable program this is good for you to save home .
thanks
Aksh
Or you can take help from Home affordable program this is good for you to save home .
thanks
Aksh
smithsussane,
I am definitely pursuing the MHA modification. Whether or not the bank plays ball, we are waiting to see...
My bigger issue is cc debt. I took a major pay-cut recently when changing jobs, while waiting for a substantial promotion/pay raise that has been out on hold. To cover the gap in earnings, I utilized my credit. Now, no raise and substantial cc debt that I can no longer service.
Hopefully the cc companies will want to work with me (I don't think they will like what I need to do to make this work), but if not, I may file Chapter 7 to discharge the unsecured debt, while keeping my home and car current.
Thoughts?
G
I am definitely pursuing the MHA modification. Whether or not the bank plays ball, we are waiting to see...
My bigger issue is cc debt. I took a major pay-cut recently when changing jobs, while waiting for a substantial promotion/pay raise that has been out on hold. To cover the gap in earnings, I utilized my credit. Now, no raise and substantial cc debt that I can no longer service.
Hopefully the cc companies will want to work with me (I don't think they will like what I need to do to make this work), but if not, I may file Chapter 7 to discharge the unsecured debt, while keeping my home and car current.
Thoughts?
G
Hi guest!
Welcome back to forums!
I would suggest you to negotiate with your credit card company first and check out whether or not they would give you a repayment plan. If they agree to give you a repayment plan, then you won't have to file bankruptcy.
However, if the creditor is not ready to negotiate, then you can file chapter 13 rather than Chapter 7. You can include your unsecured debts in Chapter 13. If you want to keep your home and car payments current, then there is no need to include them in your bankruptcy filing.
Fee free to ask if you've further queries.
Sussane
Welcome back to forums!
I would suggest you to negotiate with your credit card company first and check out whether or not they would give you a repayment plan. If they agree to give you a repayment plan, then you won't have to file bankruptcy.
However, if the creditor is not ready to negotiate, then you can file chapter 13 rather than Chapter 7. You can include your unsecured debts in Chapter 13. If you want to keep your home and car payments current, then there is no need to include them in your bankruptcy filing.
Fee free to ask if you've further queries.
Sussane
Hi Sussane,
Thanks for the advice... It brought up another question that I have; what is the benefit of Chapter 13 vs. Chapter 7? I have a basic understanding of the difference of the two, but if a person is eligible for Chapter 7, why would Chapter 13 be better? If the credit is going to be punished, does it really matter? (Sorry for the multiple questions..)
G
Thanks for the advice... It brought up another question that I have; what is the benefit of Chapter 13 vs. Chapter 7? I have a basic understanding of the difference of the two, but if a person is eligible for Chapter 7, why would Chapter 13 be better? If the credit is going to be punished, does it really matter? (Sorry for the multiple questions..)
G
hi guest1!
welcome back to forums!
there are certain differences between chapter 13 and chapter 7 bankruptcy. in order to file chapter 7, you will have to qualify the means test. if you don't, you won't be considered eligible for chapter 7. in such a situation, you'll have to go for chapter 13 bankruptcy.
if you file chapter 13, you will have to make payments under the supervision of the court. it'll help you reduce your debts or allow you time to pay off the debt in full. the trustee would give you a payment plan through which you would be able to pay off the debts within 3-5 years. that's the reason why chapter 13 is considered as a better option compared to chapter 7.
in case of chapter 7, you can pay off your debts by selling your assets. the bankruptcy trustee will sell off the property so that your creditors get paid off. you'll have to list all your assets when you file chapter 7.
feel free to ask if you've further queries.
sussane
welcome back to forums!
there are certain differences between chapter 13 and chapter 7 bankruptcy. in order to file chapter 7, you will have to qualify the means test. if you don't, you won't be considered eligible for chapter 7. in such a situation, you'll have to go for chapter 13 bankruptcy.
if you file chapter 13, you will have to make payments under the supervision of the court. it'll help you reduce your debts or allow you time to pay off the debt in full. the trustee would give you a payment plan through which you would be able to pay off the debts within 3-5 years. that's the reason why chapter 13 is considered as a better option compared to chapter 7.
in case of chapter 7, you can pay off your debts by selling your assets. the bankruptcy trustee will sell off the property so that your creditors get paid off. you'll have to list all your assets when you file chapter 7.
feel free to ask if you've further queries.
sussane
hey! When you file for Chapter 7, there's a clause wherein you sign a reaffirmation agreement. By doing this you are allowed to continue paying your mortgages on your home and won't have to give it up. Moreover if the cash troubles persist, you can also consider refinancing.