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  1. #1
    Join Date
    Aug 2007
    Posts
    2

    Default Chapter 7 Bankruptcy and Renegotiating a Mortgage

    I am filing for Ch7 bankruptcy - my mortgage is a sucky one that I got coersed into - it has MIN payment of like 500 and interest only of like 1000 and P+I of 1100. I have been making the MIN and didnt realize that the difference between the MIN and the interest only payment (i.e. 500$) gets added to my principal each month!!! I only pull in 1200 a month from SS, I am retired.
    Anyways, the Ch7 will get rid of my CC debts but I will still only be able to pay the MIN with my income. I am digging a deeper and deeper hole I know...Any advice?
    I have no equityin the home due to only paying the minimum. I have heard of people filing a CH20 - i.e. a CH7 (to get rid of debts) followed by a Ch13 to pressure the mortgage company to restructure the loan. Is this doable?

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Ch 7 in AZ, have I-O 5/1 ARM with min payments

    What's the purpose of restructuring the loan if you can barely keep up with half of the interest? Perhaps you should be thinking about selling the home, or using bankruptcy to surrender the home to the bank, then finding accommodations you can afford.

  3. #3
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Chapter 7 Bankruptcy and Renegotiating a Mortgage

    Agree. Even if you discharge all your other debts under a chapter 7 bk, it doesn't look like you can still afford your house payment.

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