Frustrated and upset, might not be able to file a proposal

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blondie

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Frustrated and upset, might not be able to file a proposal
« on: September 19, 2013, 11:45:17 AM »
I have been talking back and forth with the trustee's office. Sent in my financial assessement and got all the paperwork together. Now she is telling me it looks like I would have to offer them $800 per month.(originally she estimated 500-600)

ughhhhhhhhhh I could barely make a payment of $500 and have anything leftover for any time of emergency etc.

Debt is about $50,000.

I don't know what the heck I am going to do if i cannot file a proposal. BMO has already started a statement of claim against me and now Scotiabank is threatening collections. I have payment arrangments with everyone currently but am barely making a dent in the debt and will be dead before any of this is paid off and I will continue to have the threat of liens and garnishment of wages looming over my head.

this was my last option and I am so discouraged. I cannot file bankrupty because this is my debt and not my husbands and that would affect him and I don't want any of this to affect him.




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Dumdum

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Re: Frustrated and upset, might not be able to file a proposal
« Reply #1 on: September 19, 2013, 11:55:29 AM »
Seems high but we don't know all the circumstances. Did you tell her this would put you in financial crunch? Perhaps another opinion might help. :(

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blondie

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Re: Frustrated and upset, might not be able to file a proposal
« Reply #2 on: September 19, 2013, 12:12:00 PM »
If she looked at my financial assessment she could clearly see that i cannot afford, it shows about $580 left over without paying any of my current debts. They take the income and assets and do some sort of calculation i guess but it makes no sense to me how they come up with $800. she is now asking for my husbands net income and says it might bring down the payment but not sure how that works, more income to me would mean more payment?!

I guess with the paper work it shows i have a bit of equity in the house which is not working in my favor I guess but i don't how know how that matters when I am not selling the house and its only about 10k.

this is so stressful. :-\

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lawnpotter

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Re: Frustrated and upset, might not be able to file a proposal
« Reply #3 on: September 19, 2013, 12:44:07 PM »
I have a simple answer for you. GET ANOTHER OPINION from at least one more trustee. I saw 6 trustees and they all had very diferent opinions and strategies. I chose the one that was in sync with me. In the end I trusted my gut.
« Last Edit: September 19, 2013, 01:18:28 PM by lawnpotter »

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blondie

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Re: Frustrated and upset, might not be able to file a proposal
« Reply #4 on: September 19, 2013, 01:01:52 PM »
ok thanks, this one has really been very helpful but if you received different opinions from different people then I shall try another.

here is a questions...I have two cars. One is currently in storage and one was a gift just given to me by my family in the summer...they don't know my debt situation but had plans to give each of their children a car for their 40th bday so it was a dream of theirs to give me a car.....its only a summer car and i cannot sell it, it would crush them. The other car is secured to one of my debts and i cannot sell that car nor do i want to give it to the bank. I won't be able to include the secured debt in my proposal. but i figure its hurting me to show that i have two assets. Do i have to claim the second car as an asset?

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lawnpotter

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Re: Frustrated and upset, might not be able to file a proposal
« Reply #5 on: September 19, 2013, 01:22:23 PM »
Sorry, cant help you with the car, but regarding a second opinion, you can always go back to the first trustee but it is good to get others perspective.

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nodebt

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Re: Frustrated and upset, might not be able to file a proposal
« Reply #6 on: September 19, 2013, 01:29:44 PM »
You should also get a second opinion on your home's value.

Where did you get the info that you have $10K in equity? 

I was told to get a realtor to give me an estimate of value as part of the process.

Maybe if you talk to a couple different realtors you may get an opinion of value that leaves you with less equity.  That would surely bring your payment amounts down.  Also, don't sugar coat it for them, tell the realtor you need to sell the house quickly and they will likely give an opinion of lesser value. 

Good luck. 

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blondie

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Re: Frustrated and upset, might not be able to file a proposal
« Reply #7 on: September 19, 2013, 01:35:29 PM »
A realtor gave me a letter on the home. Trustee said based on what i owed on the mortage and what I could get for the house.
the Realtor's assessment was pretty much same as the city's asessment.

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nodebt

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Re: Frustrated and upset, might not be able to file a proposal
« Reply #8 on: September 19, 2013, 02:10:28 PM »
Hey Blondie, if you are really in a jam I would suggest approaching another realtor to see if you can get that value assessment down.  If another realtor looks at your place and says it is worth just what you owe, then you have no equity and that part comes out of the calculation. 

I may be wrong, but I believe the $10,000 in equity you are showing means you will have to pay $10,000 more over the course of the CP...  Don't quote me, and please, if anybody else knows how this works and this is wrong, please chime in to tell us...  If I am correct then your equity is forcing you to pay an additional $166 a month, meaning that instead of $800 a month it could be $634 a month.

I don't think it matters what the city assessment is, as long as a realtor gives their opinion. 

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Stewart

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Re: Frustrated and upset, might not be able to file a proposal
« Reply #9 on: September 19, 2013, 02:21:07 PM »
Did they take realtor commissions into account? Even at a very low 2.75% total commission you may reduce or eliminate that $10,000 entirely.

Get a letter from a realtor indicating a "fire-sale" price (a price so low it would have to sell within 30 days), factor the lowest commission package a professional realtor would offer (remember you have to pay the buying agent AND the selling agent) and see what the equity works out after you take off the mortgage principal plus early payment penalty.

Also get a second opinion from another trustee to see where you're at. Find out how they arrive at their figures, taking into account your share of common expenses, etc. against your current gross income.

If you're making a high salary, you may have to endure a higher payment or else face the possibility of going bankrupt. I personally can't see a trustee genuinely suggesting you offer something that would put you in the negative each month. Did the first trustee tell you how they arrived at their figure?

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nodebt

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Re: Frustrated and upset, might not be able to file a proposal
« Reply #10 on: September 19, 2013, 02:28:59 PM »
Not sure of the exact rules or why, but my trustee told me that we could not include realty commission or early payment penalty in the calculations for a CP.  She seemed quite annoyed by that rule, but said that's the way it is... 

But you should be able to find a realtor who is willing to give a value based on "fire-sale" conditions as Stewart mentioned.  You should ask any family or friends who have recently bought or sold a house to refer you to the realtor they used.  They may be willing to help you out and by extension look a good guy in their client's eyes.

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blondie

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Re: Frustrated and upset, might not be able to file a proposal
« Reply #11 on: September 19, 2013, 02:44:14 PM »
thanks for the advice everyone! i have contacted another trustee and hope to get an appointment soon and I am going to try a few more realtors for some evaluations.

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Dumdum

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Re: Frustrated and upset, might not be able to file a proposal
« Reply #12 on: September 19, 2013, 05:38:36 PM »
thanks for the advice everyone! i have contacted another trustee and hope to get an appointment soon and I am going to try a few more realtors for some evaluations.
Great!!  :)

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TreeFrog

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Re: Frustrated and upset, might not be able to file a proposal
« Reply #13 on: September 19, 2013, 06:43:27 PM »
Glad to hear you're getting another opinion. Consumer Proposals aren't easy, but they shouldn't be impossible.

Let us know what you hear!
~Wenydy

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blondie

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Re: Frustrated and upset, might not be able to file a proposal
« Reply #14 on: September 20, 2013, 03:53:18 PM »
HUGE sigh of relief at least for now i guess anything can happen between now and when I sign the papers. But I did go to another company this morning and they crunched the numbers right away before going into huge details just to make sure we could come to an areable number and they came up with $450!!! I realize it could go up a bit but it would be freakin awesome if I could get that as it would allow me to pay the proposal and have a bit of breathing room incase something comes up and I am not going to have to scramble for money each month.

the only thing I am worried about now is that they did a verbal call on my house and called me and said it came out as $280,000 and I was like no way in heck its worth that, I told her I already had a letter from a realtor staying it could be listed at $250,000 and may draw up to $260,000. THe city assess it at $260,000 and my currently mortage is at $221,000 so I cross my fingers it doesn't come back as more and they accept the $250,000 because I cannot afford to have any equity in the house right now.

I have another appointment Tuesday morning to sign papers and they want the first payment, then the next payment won't be until November or so when the proposal should be accepted. They were super nice and confirmed they wouldn't send a proposal that wouldn't be accepted. I hope that it all works out for tuesday because I was at my witts end.









 

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