Lien Stripping Payment Plan?

Your payment plan with a lien stripping is the same as it would be in any other Chapter 13. However, you may have more money available since you will no longer have to make payments on the 2nd mortgage. Assuming that you haven't received a bankruptcy discharge before, on completion of your plan, you receive a Bankruptcy Discharge, which eliminates your credit cards & other unsecured debts. After the Chapter 13 is over, you will be able to obtain credit, but you may wish to participate in a credit repair program to improve your FICO scores. Good luck, and watch the news interview at the link below. If you like this info, please click on the "thumbs up" icon.

First off, I am recommending that you seek the advice of a bankruptcy attorney in your area prior to taking any action. I know many people try to file their own bankruptcies, but I have seen many Chapter 13 bankruptcies (and many Chapter 7 bankruptcies for that matter) butchered because the debtor didn't know what they were doing and were trying to save money by going it alone. The advice of a knowledgeable bankruptcy attorney can go a long way. Your Chapter 13 plan payment for unsecured creditors (i.e., what percentage plan it is) is based on two factors: 1) best effort and 2) best interest. Best effort is dictated by your actual income versus actual expenses (Schedule I versus Schedule J) and the Disposable Monthly Income (DMI) that is generated by the Means Test. Best effort will determine what you are able to pay each month for the next three to five years (depending on the length of your plan). Unfortunately, I do not have enough information to tell you what your payment amount would be based on best effort. Best interest is dictated by what assets you have that are unexempt that you want to protect. You can keep the unexempt asset if you offer to pay the unexempt amount to the unsecured creditors through the Chapter 13 plan. Once again, I do not have enough information to tell you what your payment amount would be based on best interest. You also need to take into consideration that when you file for Chapter 13 Bankruptcy, you need to forfeit any income tax refunds that you receive during the life of the bankruptcy. The income tax refund is considered DMI and the Chapter 13 Trustee and Bankruptcy Court want those monies to distribute to your creditors. You may be happy with a $100.00 per month plan payment, but not with giving up the $10,000.00 you get in income tax refunds each year. You might want to consider filing for Chapter 7 bankruptcy then settling your second mortgage. Depending on your financial situation, you might be able to settle your second mortgage for a fraction of what you owe in one lump sum. I have settled many second mortgages for 10% of the balance. Rather than opening up a big can of worms by filing Chapter 13, seek the advice of a bankruptcy attorney in your area about all of your options. Best of luck to you! Jonathan Panossian, Esq. Law Office of Jonathan Panossian, A PC http://www.JRP-LAW.com Disclaimer: The information contained on this website pertains to the law and legal procedures in general. It is neither intended to give legal advice for any specific case or situation, nor does it create an attorney-client relationship. Bankruptcy Law is complicated and you should consult with an attorney before taking any action. Should you have any questions or concerns regarding the legal aspects of your situation, you should seek legal advice from a professional immediately. Law Office of Jonathan Panossian, A PC does not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these materials. Thus, Law Office of Jonathan Panossian, A PC shall not be liable for any special, indirect, incidental or consequential damages, including without limitation, lost revenues or lost profits, which may result from the use of these materials. The information contained herein is subject to change without notice and does not represent a commitment on the part of Law Office of Jonathan Panossian, A PC. Any and/or all testimonials or endorsements do not constitute a guarantee, warranty or prediction regarding the outcome of your legal matter http://www.jrp-law.com/Bankruptcy-Attorney-Agoura-Hills-CA.html http://www.jrp-law.com/Bankruptcy-Attorney-Tarzana-CA.html http://www.jrp-law.com/Bankruptcy-Attorney-Van-Nuys-CA.html http://www.jrp-law.com/Bankruptcy-Attorney-Pacoima-CA.html http://www.jrp-law.com/Bankruptcy-Attorney-Panorama-City-CA.html http://www.jrp-law.com/Bankruptcy-Attorney-Universal-City-CA.htm

Your payment is based on your income, your expenses, your property and your needs. Any one of these could set you payments higher than what you can afford. The lien strip does not change the payments. What happens is the lien holder gets the same percentage payment that all other unsecured creditors get. At the end of the plan and upon discharge, the lien is removed. During the plan term, the borrower does not have to pay on the lien. Regarding your credit, every jurisdiction is different. In my District (Eastern District of Virginia), debtors in Chapter 13 cannot borrow more than $5,000 without court approval. Once the discharge occurs, that prohibition is gone. Other than that, whether you can get credit depends on the creditor and your creditworthiness. There is no bar to getting loans, credit cards, or anything. Talk to a local bankruptcy attorney. It appears that you have many misunderstandings about bankruptcy. [This communication is intended as general information and not specific legal advice, and this communication does not create an attorney-client relationship.]