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Chapter 13 in crooked Bowie County? What was I thinking?

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fbowiecounty

Junior Member
What is the name of your state? TEXAS
My husband and I were "forced" to file bankruptcy back in November in an attempt to prevent the foreclosure on our home or atleast by us some time so we could sell the house. Our home was financed with a balloon note at the end of three years. This was the second three year span with a balloon note. The house appraises for approximately $55,000 or more. The payoff on it was only $20,900. The banker claimed that they would not be able to refinance us and we would either have to finance elsewhere or pay the balance of the note. No one would refinance us because the amount was so low. They only finance if the amount borrowed is $50,000 or more or the appraisal is $70,000 or more. It was also immpossible to do because the loan cannot be for more than what our original mortgage amount was which was only $29,000 which meant we could not finance the house for $50,000. We filed Chapter 13. The meeting of creditors was scheduled in a town an hour from our home, we went but it was rescheduled. I went to our attorney to see if I could get papers verifying that my physician was listed in the bankruptcy so that I could go to my doctor and while I was there he told me that the bank who my house had been financed through disputed his plan for us to pay $750/month and won. He said we would have to pay close to $900/month for 3 years and the first payment was due in a week! We never received anything showing what we would have to pay or who we pay it to. There is no way we can afford this much, maybe when my husband has a good month, but there is no consistency to his pay or work schedule. I am disabled and only receive $494/month from disability, my husband is self-employed. Our taxable income for 2004 was a little less than $16,000. We own less than the allowable total liquid assests. I had a truck that was financed through a tote the note car lot, but they repossessed it three days ago after being granted the motion for relief from stay. Since the house was in the foreclosure process when we filed for bankruptcy there was not anyone we could make the house payment to and still is not. I called the attorney today and asked if I could change from Chapter 13 to Chapter 7 since the truck was gone. I hoped the payment would be less so that we could afford it and save our house. I was told that the truck and house are dismissed from the bankruptcy and that the house will be foreclosed on and there was nothing we could do. I do not understand any of this. Why did they set a payment amount that was obviously immpossible for us to pay? Why can't I change to Chapter 7? I really do not feel this is right. Can you give me any information that might help? Thank you so much for your time and any future assistance with this very important situation.
 


bigun

Senior Member
To save the home in a chapter 7, you'll need to be able to get current.
Do you have friends or family that would be able to finance the balance of the mortgage privately.
The only other alternative would be to sell the house and pay off the note and use the balance to start over.
Given your income, I don't know that you were ever a good candidate for a Chapter 13.
 

fbowiecounty

Junior Member
Texas
Thank you. I see this now. Will the bank be required to start the foreclosure over completely or can they sell our home at the next public auction which is Monday?
 

bigun

Senior Member
The bank will have to follow Tx. law regarding the foreclosure. Doubt a sale will happen in a week.
I'd see another lawyer about filing a Chapter 7, keeping the equity in the home and discharging the auto deficiency and any other unsecured debt.
 

fbowiecounty

Junior Member
TEXAS
Thank you so much for your assistance! People like yourself have really helped me find the "legal" way out of so many situations in the past few years. I don't know what I would do without you!
Could you please explain what you mean by keeping the equity in the home.
 

fbowiecounty

Junior Member
I am sorry for all the questions, but I received so many contradicting information from the banks around this area and I would like to know for certain. In this type of situation how is the equity to be figured? Do they go by an appraisal and amount owed on the mortgage or do they use the amount owed versus the original loan amount?
 

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