Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
My name is Francine, and I’m a Moderator for JustAnswer.
Thanks for your question!
I'm sorry that you haven't received an answer yet. The response rate on JustAnswer is usually over 95%, but sometimes questions go un-answered when:
1. the question may be unclear 2. the question seems to require an answer for something that cannot be explained online adequately 3. the Experts that are online simply don't have the resources to answer your question fully 4. the question price you selected is too low for the complexity of the question
Please feel free to re-word your question or increase the price if you feel that may be the reason. Of course you are not required to increase the price. :)
If you would still like to receive an answer from an Expert, just let me know, and I will do my best to assist you by finding an Expert to help you.
If you have any questions regarding deposits or billing, please feel free to use the help link below:
Fran JustAnswer Moderator
In a Chapter 13, the amount paid to an unsecured, second mortgage company depends on the plan payment, which depends on the debtor's disposable income. In short, stripping the lien does depend on your ability to pay.
I think this is what you wanted to know. If not, please let me know.
Your monthly plan payment is the total of your disposable income, which is the amount of one's income that is left over after deducting the debtor's allowable expenses.
This payment is distributed to creditors in the following manner: 1) Secured debts (first mortgages, car loans) are paid according to the loan terms, 2) the balance of the monthly plan payment is paid to rest of the debts according to the proportion for each remaining debt of the debt balance. In other words, if there are 3 debts totaling $100,000, and debt A is $10,000, debt B is $30,000, and debt C is $60,000, debt A would receive 10% of the balance of the monthly plan payment, debt B would receive 30%, and debt C would receive 60%. Unsecured debts do not accrue interest for the duration of the Chapter 13 Bankruptcy, and at the end of 3 - 5 years, all unsecured debt - including the second mortgage - is discharged, regardless of how much those creditors received in the plan.
In summary, if your total plan payment will be more than the payments to your second mortgage and other unsecured debt, filing a Chapter 13 would not be worth while.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).