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Ask WALLSTREETESQ Your Own Question
Category: Bankruptcy Law
Satisfied Customers: 17248
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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I am considering Ch 13, the only debt we have is our 2 mortgages

Resolved Question:

I am considering Ch 13, the only debt we have is our 2 mortgages on our home. The house is worth about 170K, and the first is $198, 2nd is $126. We are not making enough to make the second every month, but we keep juggling things to keep up. How is the "repayment" amount figured? Is it strictly based on a percentage of our income or is does it take into consideration all of our bills such as utilities, groceries, car insurance, etc.
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 7 years ago.
the second loan can be stripped off since their is no equity to pay them, the repayment will only be for arrears, you have to pay the first in full every month the second will be converted to unsecured debt, which could be paid at 5-50% over 60 months.
Customer: replied 7 years ago.

5-50%, how is the amount determined? this amount is important, this is a big spread...we are not young and don't have much time to recover from this, this is actually to prevent us from losing the house later (if one of us is forced into retirement or if somethig happens age-relate). Our biggest concern is that the mortgage will not be anissue for us in 5 years if we are able to stick to the repayment plan Thanks for your help

Expert:  WALLSTREETESQ replied 7 years ago.
it is determined by how much income you will have left after paying your expenses, such as the first mortgage, and your household bills. if you have $100.00 left over every month, you would pay $100 for 60 months, and that is all.
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Customer: replied 7 years ago.
Thank you so much, I will more than likely set up a consultation appointment with a different BK attorney to review our finances to see what the payment might be. I appreciate your answers, they were very helpful.