Credit To Pay Off Ch 13

[enigmainva]

Virginia
In August, I'll be 3 years into my CH 13. Due to a relationship breakup, I had no choice but to file for CH 12 in order to stop foreclosure of my home. When I filed, I asked the court to include my entire mortgage payment in the bankruptcy, having been led to believe the mortgage payments would be made on time and thus help me to re establish good credit. Interest rates have come down a great deal since I filed. My CH 13 payment is $2025.00 a month and my mortgage interest is 8.9%. Even though I've paid the court on time religiously, the mortgage payments have been paid consistently late. I've been looking into refinancing to pay the CH 13 off and get a lower interest rate on my mortgage so I can begin to pay on my outstanding student loans, which have been on hold since I filed CH 13, but, I can't seem to find any willing lenders. Any advice is most appreciated, here or at [email protected].

 

[racer72]

You don't want to pay off your Chapter 13 early. You will be considered solvent while under court protection and you will become fair game for all your creditors. Any reductions, delays, or dismissals you recieved in the bankruptcy will be gone and you will be liable for any charges or late fees. That is why no mortgage lenders will touch you till your chapter 13 is complete.

 

[enigmainva]

Re: Credit To Pay Off CH 13

You don't want to pay off your Chapter 13 early. You will be considered solvent while under court protection and you will become fair game for all your creditors. Any reductions, delays, or dismissals you recieved in the bankruptcy will be gone and you will be liable for any charges or late fees. That is why no mortgage lenders will touch you till your chapter 13 is complete.

I'm not quite sure I follow you. In paying off the CH 13, I mean to pay off everyone, not just the mortgage. I went into CH 13 to keep the house from being foreclosed on, and to get the creditors to stop harrassing me; not to get out of paying anyone. I'm paying every single debt I had when I got into this mess. That's one of the reasons my monthly payment is so high.

I don't seem to have any trouble getting lenders to "touch me". I have a problem getting lenders to give me a decent interest rate. The one's who seem willing to give me a mortgage all want me to pay them interest at a greater rate than my current mortgage rate. Several had said "the rate and your monthly payment aren't important to you, getting your good credit rating back is what's important to you." I won't get my "good credit rating back" if I can't afford the monthly payments.

So, does what you're saying mean that whether I get a mortgage with enough to pay off everyone in the CH 13 or I ride out the remainder of the bankruptcy, these creditors will be able to come after me for additional interest that's been ecruing while I was in the bankruptcy?

Thanks.