Chapter 13

What is the name of your state? Florida

Hi all. I'm new to this board and had a few questions about the chapter 13 plan. If you file a chapter 13 bankruptcy, does it stop the foreclosure permanently if you keep up with the payments? Also, who owns the house while you are in a chapter 13? I also heard that only 35 % of people complete their chapter 13 plans. Do you know why? One last question... How many months after you file do you start making the back payments to the trustee?
Thank you very much in advance. Happy Holidays.

[HomeGuru]

[quote]Originally posted by eagle123
[b]What is the name of your state? Florida

Hi all. I'm new to this board and had a few questions about the chapter 13 plan. If you file a chapter 13 bankruptcy, does it stop the foreclosure permanently if you keep up with the payments?

**A: no, as there could be other factors that the lender could deem the mortgagor in default besides non-payment. The filing of BK starts an automatic stay and if the Trustee accepts the property as part of the BK estate, then the stoppage of foreclosure is only temporary. If a payment plan is approved by the Trustee, the lender could still object. Once a motion for relief of stay is granted, the lender is free to foreclose at that time or any any other time in the future if the borrower is in default on the mortgage and/or the BK payment plan. In most cases, the lender agrees to the plan provided the borrower is able to pay the BK payment AND the current payment as agreed on the original mortgage note.
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Also, who owns the house while you are in a chapter 13?

**A: title to the property would not change.
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I also heard that only 35 % of people complete their chapter 13 plans. Do you know why?

**A: yes because these people could not pay the payments as set forth in the payment plan and defaulted.
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One last question... How many months after you file do you start making the back payments to the trustee?

**A: usually, as soon as the Trustee approves the plan, payment is requested.
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Thank you very much in advance. Happy Holidays.

**A: you are welcome and the same to you.

most people are just better off filing chp 7 in the first place, if they can (no chp 7 in last 6 years).

[Elmo-1]

Most people fail to complete their plan because of the inability to adjust to a rigid budget for a long period of time (3-5 years) with no credit. This is a lifestyle change that the whole family has to be comitted to and needs frequent CPR.

During the term of the plan life goes on and a number of things can and do happen that's impossible to budget for. You have to save for emergencies while putting all your disposable income into the payback plan. Not a very efficient formula for success.

Regarding Trustee payments, they are to start within 30 days after the plan is filed. The first payment can be as late as 45 days if any part of the petition exercises the 15 day allowance to submit the completed, final version of all required forms.

[url]http://www4.law.cornell.edu/uscode/11/1326.html[/url]

Sec. 1326(a)(1) - Payments:

"Unless the court orders otherwise, the debtor shall commence making the payments proposed by a plan within 30 days after the plan is filed."

Best of luck completing your plan and have a safe & Merry Christmas!