Where Has All The Disposable Income Gone?

People always say that I must be soooo busy with Chapter 13 filings. But, it’s not the case. More and more, it seems that new callers don’t have sufficient income to keep their homes, even with the extra 3 to 5 years catch-up time that they can get with Chapter 13. As I review budgets, I am seeing many people who just don’t have enough income to cover their recurring monthly expenses (including their mortgage payments), let alone anything extra that might be paid to a Chapter 13 trustee to catch up on their mortgage arrears and other debts. For some, this is a result of taking an adjustable rate mortgage, where a newly adjusted mortgage payment is now eating up what used to be disposable income. The starting point in determining if someone can save their home is to see if they have any funds available to negotiate with their lender or if they have sufficient income to meet their expenses and pay something extra to catch up on arrears. If you are wondering whether you might be able to catch up on debts and save a home, you should start by having our office review this with you. Chapter 13 can help many people save their homes but it all depends on their budget. Another important factor is whether there is equity in the property.