Until the foreclosure the house is yours and you can speak to the credit union about staying in the property. In my experience Credit Unions do not participate in any federal mod program and they are very resistant to modification.
Also be careful of companies offering to help you negotiate a loan mod.
Finally, your bankruptcy lawyer will be a great resource for you in this matter. I would be willing to provide all sorts of advice to my clients trying to modify their home loan without...
I rarely think of your chapter 13 plan payment as a negotiation. I think of it as telling your creditors what they get. This shifts a lot of power from creditors to you the debtor.
In answer to your question, it is possible to lower your plan payment over the course of your chapter 13 plan if your income goes down or your expenses go up. However, your plan will need to pay a certain minimum to unsecured creditors and other claims in full, such as priority tax obligations, secured claims,...
This is a good question for your lawyer. However, if you converted to chapter 7 you would not likely get a discharge. Your best bet is to quit the chapter 13 and re-file a chapter 7 case.
Of course you should talk to your lawyer about the benefits and draw backs of chapter 7, staying in 13 or other strategies. For example, some people (not very many) lose their property in chapter 7.
You are likely okay with the cars, but you should check with a local bankruptcy lawyer as exemptions vary from state to state.
You say the title to the car is in both your name and the ex. But what did the divorce say? For example the divorce may say ex gets to keep the car that she has free of your interest. If that is the case, it really does not matter what the title says, the car is really 100% hers.
All debts are included and must be listed on your bankruptcy filing. However, most tax debts are not discharged in bankruptcy, meaning that even after bankruptcy you will be required to pay them back.
Generally speaking in order to discharge tax debts you meet the following: (1) the returns filed on time; (2) it has been at least 2 years since the return was filed; (3) the tax debt must be past due for at least 3 years; (4) any late assessment was more than 2 years ago; (5) no tolling...
I am not sure what you are thinking about re-affirming, a house, a car, something else? In any event it is very rare in Massachusetts to reaffirm a debt. Some judges may not even allow the reaffirmation.
For most secured debts, keeping the collateral is just like prior to filing bankruptcy. Make the payments keep the collateral, don’t make payments, it will be repossessed.
So in short, you should be fine without the reaffirmation agreement so long as you remain current with the payments....
First, I agree that (1) you should talk to your lawyer, as this is what you are paying him/her for (2) everything seems to be going normally.
Read your chapter 13 plan which should say you are surrendering the property, if so you should be okay.
Also, I would send the same letter your lawyer sent. Mine says something like, “Dear Client, your lender recently filed a MFRS on your main st property. This is the first step a lender takes when you are in bankruptcy to foreclose. Last we spoke...
Bankruptcy will likely discharge your debt, so long as there was no fraudulent intent at the time it was incurred. Often times a failed business can lead to bankruptcy. You will want to consult with a local bankruptcy lawyer to learn how bankruptcy will work for you.
99% of individuals filing for bankruptcy have a no asset case. This means that you will retain all your property through the bankruptcy. A local lawyer will be able to make sure you are not in the 1% that loses an asset....
In your case the stay would not apply to you. But here in Massachusetts I would argue that since the property of the estate does not vest to the debtor until the case is closed, then the creditor may not proceed against estate property without proper relief.
Now none of this helps you stop the collection letter or calls, but it may help prevent a wage garnishment.
Talk to your lawyer about your options in your jurisdiction.