we filed a chapter 7 in 2004...just read a bit about chapter 13, not sure if that will help us stay in our home we dont want to lose, even though we know we are upside down. how would repayment work when and if we file a chapter 13? will that stop foreclosure? thankyou in advance
Chapter 7 Bankruptcy Attorney
The question does not have enough information to give an answer about your particular situation. What you should do is add up all your monthly income and substract your living expenses [including mortgage payments and car payments but excluding payments to unsecured creditors like credit cards or personal loans, that sort of thing]. If that result shows that you have more month than money at the end of the month, probably Chapter 13 won't fly. If it shows that you have more money than month it's worth your while to see a bankruptcy attorney in your area to see if a Chapter 13 plan will work for you. If it will, the filing of the case halts the foreclosure and may save your home.
The problem you will encounter is that you filed a Chapter 7 less than 8 years ago. You don't say if you got a discharge. Big difference.
Local counsel in this case is essential. To find someone in your area who knows bankruptcy law try www.nacba.org and use the lawyer finder tool you'll see on the right towards the top of the page.
I agree, not enough information. A chapter 13 will only help if you can afford to make the plan payments. The size of the payment depends on how far behind you are in your mortgage. You will make payments on the mortgage, plus "catch-up" payments for the months you are behind. If you are 12 months behind, then multiply that by your monthly mortgage payment, and then divide it by 36 months or 60 months. A chapter 13 payment plan will be either 3 years long or 5 years long.
If you don't have regular income then a chapter 13 plan will be totally unworkable. Your petition will get dismissed.