My husband and I filed Chpt 13 bankruptcy a year and a half ago, to save our house, our cars, and an irs debt that we were dumb enough to have happen. We both had jobs, and even though the payment was really high we felt we had no other choice but to file so we would not lose everything. He lost his job this year and took a $4 an hour pay cut, my hours got cut also, and now I am barely working. We have a $2600 payment on about $200,000 debt, we have been paying for a year and a half.
We are no longer surviving, sure we have the house and the cars, which we need with 3 kids still in the house, but some times the utility bills are any iffy thing, when food comes first. They take $1350 every two weeks out of my husbands check, if he didn’t work 7 days a week 12 hours shifts, he wouldnt get a check at all. Trust me it has happened.
I was wondering if there are loans that would pay off the bancruptcy and give us a lower payment. We have been paying $2600 a month for about 18 mths, if there are loans out there, they got to have lower payments than that. If that cant be done, Is there any help out there to help releive this?
We have no credit cards, AND no desire to get any other credit, we just want to keep our house and our cars with out drowning. I know the loan idea seems to sound a bit backwards, but I see ads all the time for loans for 200,000 at about $1000 payments, Im sure with horrendous credit it may be more than that, but still cheaper than what we are paying through our esteemed govt., like I said backwards thinking, lol
Thank-you for your time and for answering my questions. Also… Thanks for the support banner, When my 21 yr old Coastie boy comes home in November he most defiantly will get big hugs!!!!
My questions are: is there anything we can do to lower the payment, with out losing everything? Can you pay off the bankruptcy with a loan to a lower the payment?
First, the bad news, I know of no loans to pay off a bankruptcy. In all my years I’ve never heard of any legitimate loan to do that.
You have a couple of options but they all begin with your bankruptcy attorney. You should contact your attorney and go see them face-to-face, if you can, and discuss a bankruptcy payment modification or to discharge your Chapter 13 bankruptcy and move it to a Chapter 7.
If you did convert it to a Chapter 7 it might mean that you’d have to give the house back and move, depending on the situation, but it would also mean that you’d have all the money you are paying out now in a Chapter 13 to use for yourself to get by each month.
The downside is that if a payment modification is not possible, you may have to make some radical changes in your living arrangements. The upside is that you are not on fire, you have a Coastie that loves you and there is hope for a new and better future.
Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.
P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.