QUESTION
What can I do if I file for a chapter 13 and can't afford to pay the house?
Asked on Apr 30th, 2012 on Bankruptcy - Texas
More details to this question:
We filed for Chapter 13 as we have a house in forclosure. My husband works in the entertainment industry and only works a few times a year and they based his salary on a month he was doing well when we have $200 in the bank for food and electricity and water. We are unable to make the payments they made, what happens. Our atty doesn't seem to give any advice he just says well then the contract is void. Is there anything we can do I feel so helpless. We are trying but they put our payback at over $914 a month plus the $1800 for the 1st and over $500 for the 2nd mortgage. Should we just throw in the towel?
2 ANSWERS
Bankruptcy Chapter 7 Attorney serving Los Angeles, CA
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Bereliani Law Firm, PC
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You need to sit down with your attorney or a attorney to review the petition that was filed, the proofs of claims that have been filed and your current income to see if you can modify the plan payment. If this is not possible and you stop making your payments the mortgage company can file a Motion for Relief to get the house out of BK and foreclose on it. I would work on a game plan to keep you in the house as long as possible at this point. But it looks like retaining the home is not possible if you cannot afford the mortgage payments.
Answered on May 04th, 2012 at 2:17 PM
Immigration Attorney serving Arlington, TX
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Law Office of Pho Ethan Tran, PLLC
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Your income in bankruptcy is determined by averaging your monthly income for the last six months immediately prior to the filing of your petition. If that amount does not accurately reflect your present income, you should consider going back to court to amend your repayment plan. However, if your income is insufficient to make payments the court may convert your case to a Chapter 7.
Answered on May 04th, 2012 at 1:04 PM