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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2562
Experience:  Better Business Bur 15yrs bankruptcy experience. Chicago Bar
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hello, i am considering chapter 13 to save my house. i have

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hello, i am considering chapter 13 to save my house. i have a few questions.
1. i am not sure what the best thing to do is! i'm stressing over my decision.
my mortage co says since i'm 26000 behind my payments will go from 553 to 729 a mo
( i was offered a modification) because of the interest and late fees. (which includes 110 pmi insurance) if i take that offer. but if i file, wont they have to take my original payment of 553? i understand the arrearage would be split up into 60 mo which i don't know how to figure if that would be worse then just paying 729 a month? and eventually i can drop the pmi.
Submitted: 3 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 3 years ago.
Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.

it would take $434 per month to cover the mortgage arrears. The plan you have would also pay a percentage of your other unsecured creditors, roll in your car balance and anything else financed. Then add about 7-10% of the total payback to the totals to cover the bankruptcy trustee administrative fees. This is all in addition to your regular monthly mortgage payments.

Talk to a local bankruptcy attorney who can help you set up the plan and get a more, case specific, monthly payment that would be required.

You are correct in that the mortgage payment will be what the contractual payment would be again after you file, without the PMI unless it was there previously.

Thanks for your question, good luck
Let me know if you have any other questions.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2562
Experience: Better Business Bur 15yrs bankruptcy experience. Chicago Bar
Terry L. and 3 other Bankruptcy Law Specialists are ready to help you
Customer: replied 3 years ago.

can i ask how you cam up with 434? so that is 434 on top of 553 a month?

 

i would be looking at 987 a month or biweekly?

Expert:  Terry L. replied 3 years ago.
I took the $26k in arrears and divided it by 60, the maximum months a chapter 13 plan payment can run. Yes, that is in additional to your regular monthly payment of $553. You can roll the payments together if you wish in the chapter 13, or you can keep them separate, that is up to you.

Thanks for your questions, let me know if you have any others.
Good luck.
Customer: replied 3 years ago.
roll the payments together? don't they have to be paid together? i get paid biweekly so the 433 plus 553 i don't have a car loan or any other sec credit, except i do owe back taxes i know would be 166 a month. so i figure roughly 1152 . is that broken down so i would pay this 600 every two weeks? ( i get paid biweekly) i wouldn't be paying 1152 every two weeks would i?
Customer: replied 3 years ago.
did i loose you?
Expert:  Terry L. replied 3 years ago.
your chapter 13 plan can pay the mortgage arrears separate from the regular payment that was due. You can also pay them together thru the plan as 1 payment too. That is your choice. Either way, it will be the same amount going out of your pocket each month. Most people pay them separately, so that the trustee percentage would be lower as a result. The bankruptcy payment is a monthly payment, but you can pay some from each paycheck if you wish to break it down that way. Your employer can deduct it from your pay and send the trustee payment to the trustee for you. Otherwise, you can send in the monthly payment to the trustee directly yourself. For your back taxes owed, they can also be paid thru the plan. You would take the balance owed, divide by 60 and that would be added to the monthly payment.

Thanks and good luck.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2562
Experience: Better Business Bur 15yrs bankruptcy experience. Chicago Bar
Terry L. and 3 other Bankruptcy Law Specialists are ready to help you

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Terry L.
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Bankruptcy Lawyer
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Better Business Bur 15yrs bankruptcy experience. Chicago Bar