Someone please help me. I filed chapter 13 12/04 the mortgage co. has claimed more than I filed for. I currently pay $510/mth in the wage earner plan but with the claim filed by the mortgage co. it could take my payments up to $900 and we can't afford that. I filed in order for us to keep our house due to a job loss last summer we fell behind in our payments. I need some help. QUICK. The dismissal hearing is scheduled for 4/27.
Any ch13 plan must be paid off in 5 years max. (60 months). Now if you can afford $500 a mo., times 60 months, is $30,000. But suppose your creditors say you owe $60,000. That's twice the amount you can afford. In these cases the judge will almost certainly order the repayment of what is called a dividend. In this case a 50% dividend. 60,000 /.50 30,000 So, you [probably] will not lose your chapter because you can't afford it. There is an exception made for secured debt, such as a house. Once this is deducted, you may end up paying your unsecured creditors about a 10% dividend. ie: $400 for the house and $100 for unsecured creditors. Total: $500 STILL! See? BTW - You do have an atty. I presume? ???
If you have an attorney representing you, where is he in this matter? If not, you need to examine the proof of Claim submitted by your Mortgage company. You can get a copy from the Court or the Trustee.
Butch/Flyingifr, Thank you both for replying so quickly. Yes, I do have an attorney but barely get to talk to him personally. I am always having to talk to his paralegal. What you are referring to is called a percentage plan, correct? That is where you have to give up your tax return money also, right? I will contact Jasmine(paralegal) today and ask her about what you have mentioned to me. I will keep you informed. dmplz618
