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is your second mortgage under water in full?
Your chapter 13 attorney is correct, if the second is not secured by any equity, it can be removed from your home as a lien, and you would pay it through your plan. Under the bankruptcy code, you may be required to contribute your projected disposable income toward plan payments for the first 36 months of the plan. (I say "may" because the code [11 U.S.C. § 1325(b)(1)] only requires you to contribute your full disposable income to plan payments if the trustee or a creditor require it.
After 36 months, it is not necessarry to change your plan.
so what is projected disposable income
Projected disposable income, is how much a month you have left over, after all expenses are paid for the month,
So if your expenses go up as well as your income, their would be no need to pay more,
okay so this is a five year plan the attorney is including the first mortgage , car payment and all out standing debt in a payment plan based on salary we are left with the rest to live on so if I understand correctly the first 36 months if we get rasies out paymeny can go up after three years then there are no changes?? . What happens if in the first 36 months you have a major repair and no income left over to pay for repairs??
Than you would have to either amend your plan, but typically if you miss one month sue to extraordinary expenses, the trustee if notified will allow you to make up the difference.
You should in your chapter 13 plan, take into consideration repair expenses, as a monthly cost,
ok thats a good idea . I think what has happend is the attornry met with us first and then on follow up we have been meeting with paralaegal who seems a little doom and gloom I feel that this court appointed person will be a taskmaster but maybe it is not so. I just happend to see the last sentence in the 6:34 pm comment you say no need to pay more do the bankruptcy laws differ in different states?
Bankruptcy is Federal law, so it is the same everywhere,
What I stated was if your income increases during the first 36 months, you would have to report the changes, but if your expenses increased as well, you would not have to pay more,
It is disposable income that matters,
For instance if you received a $10,000 year raise,
But had a child during the year,
your expenses would also increase,
so the trustee may not make you pay more in your plan.
You have the right to dismiss your chapter 13 bankruptcy case at any time, assuming that the court does not find that you filed your case in bad faith and you did not start in another type of bankruptcy and convert to chapter 13. Sometimes debtors are offered a job promotion or a large family gift while in chapter 13 bankruptcy and decide it is better to dismiss their case and settle with the creditors instead.
If you lost your job and have no income, you would them convert your chaptert 13 to a chapter 7 bankruptcy and discharge all of your debts.
If you have any further questions please do not hesitate to ask
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Got it! No chances of that happening we are close to our 60's got hit hard when the housing market fell moved just at that time house very upside down savings eaten up by job loss of spouse only because of my job in the health field we have income. last question are there any lawyers who do debt payment with creditors without bankrutptcy including working with second mortgager . we need to put money back into retiremnt and cant do that with bankruptcy if spouse get a job
Their are several attorneys who can do this, but a chapter 13 is better as it will strip the second, and your payments would be lower,
You can look for debt settlement attorneys, and they will negotiate with your debtors,
Their are asset protection attorneys as well, who you should consider speaking to as well, as they can hide your personal assets so you do not even have to pay your creditors,
Thank you This was a good second opinion I will look up an asset attorney as well .
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