Need a roof...

[sparkle1908]

I just filed Chap 13 in June 2019 and now I'm being told that I will need to get a new roof by my homeowners insurance company...I can't afford a roof(or the deductible) because my bankruptcy payments take most of my paycheck...

I will contact my bankruptcy attorney tomorrow...has anyone been able to secure a small loan to make needed home repairs? I assume with me being in chap 13 and my credit scores in the tank, it will be next to impossible to get funds(if the trustee approves this in the first place) to cover this...🙄

I know they won't "suspend" my payments so I can take care of this...when it rains, it pours right?🙄

[despritfreya]

Typical procedure:

1. Discuss with your attny.

2.  Get several estimates for a new roof.  Depending upon size and type (shingle, tile, etc,) a new roof can cost a lot.  Just did mine for $15k.

3.  Find out if the purchase can be financed.  Most roofing companies work with lenders on larger projects but interest rates can be high.

4.  If the cost is not too great and waiving 3 or 4 Plan payments will cover it, your attny should be able to file a Motion to Waive Plan Payments.  The missed payments will have to be made up and that usually means raising the going forward payments a bit to cover it.

5.  If the cost is too much and you can get financing your attny will need to file a Motion to Incur Debt.  This may actually be a Motion to Incur Secured Debt since some finance companies will require the imposition of a lien against the property. You will need to produce a new budget (Schedule I and J) that shows you can still afford the Plan payment despite this new monthly expense.

You do need to address the roof issue sooner rather than later.  If your insurance company has threatened to terminate your policy due to the condition of the home you have a problem.  If the policy is terminated and you cannot get another one, your mortgage lender will put forced place insurance on the home and then file a Motion to Lift the Stay since the home is not properly insured.  Forced placed insurance (which costs a lot more than normal insurance) does not protect you.  It only protects the lender.

Keep us posted.

Des.

[Anonymous]

I have no idea how the payments work during a Chapter 13, however; I can give advice on how to help with your roof issues.

Depending on where you live, most towns have energy efficiency programs that give grants to replace roofs, furnaces, windows, etc. I used this program several years ago, and the only stipulations were that you had to stay in the home for 5 years (or you had to pay back the $), and you couldn't make over a certain amount of money per year. If I remember correctly, the income limits were actually quite high. They ended up giving me almost 18k for a new roof and furnace.

I honestly can't remember the program name, but I do know that most towns/cities have it. If you contact your city department, they can probably point you in the right direction.

Hope this helps!