QUESTION
Can we still incorporate what we owned to the lender on our bankruptcy?
Asked on Oct 29th, 2016 on Bankruptcy - Ohio
More details to this question:
Back in 2011, we filed and enter in a chapter 13, paying 51% back. My husband had a secure job, after 4 years in, my husband lost his job. We still managed to finish with the bankruptcy but of course by being behind on our first mortgage payments outside of the bankruptcy. Now, we are behind almost $30000 with our lender. We already had a modification so we don't qualify for another one so they sent us a letter that since we were behind on default the foreclosure process has begun. While our trustee is reviewing our case to finalize it in 30 days, we are facing foreclosure. We both have new jobs and don't want to lose our home. We try to qualify to keep our home since we hit this tremendous hardship, but to qualify, we need the bankruptcy dismissed to proceed. We don't know what we can do. We don't want to lose our home!
5 ANSWERS
Unless you have received your discharge, you could dismiss it, but I think that would be foolish. Get your discharge and then you will be able to file another Chapter 13 right away to resolve the problem with your mortgage arrearages. You need to be getting extensive legal advice to make this happen, and quite frankly, you should have been keeping the lines of communication open with your attorney a long time ago. Failing to discuss this with your attorney has cost you plenty.
Answered on Nov 30th, 2016 at 4:29 PM
Pay an experienced BK lawyer for one hour of their time to review your file with you. You have several options.
Answered on Nov 30th, 2016 at 4:26 PM
1 Award
Just file a new chapter 13. You can file a new chapter 13 for the sole purpose of making up the newly missed home payments over time.
Answered on Nov 30th, 2016 at 4:26 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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You can file another Chapter 13 to catch up on the mortgage arrearage. You can't get another discharge but if you can pay $500 a month for the arrearage you'll save the house.
Answered on Nov 30th, 2016 at 4:25 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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As you may know, it is very easy to dismiss a Ch. 13 case: all you need is to file a notice with the court. (Whether you can dismiss a BR after yu've made all the payments is not entirely certain-but if it seems like a good idea, you can try.) Do you mean that the BR must be 'dismissed,' or do you mean that you must have received a discharge? If you've made all the payments, the Court should grant you a discharge pretty soon. (I don't see why the trustee-if yu mean the Ch. 13 trustee- must take a month to review the case before he or she can recommend a discharge.) You certainly should discuss this matter with your bankruptcy lawyer. There might be some strategy whereby you can eat your cake and have it too. That's what lawyers are supposed to be good at. One possibility is to contact your lender ASAP and try to negotiate something-such as your paying off the $30,000 over a period of time. Banks generally don't like to give you a long time, but they may be willing to talk, since foreclosures are rather expensive for banks too. You might see if you can borrow a lump sum-presumably $30,000-to get rid of the arrears on your home mortgage. Your credit score probably improved during the course of the Ch. 13. Also, close friends and relatives can sometimes come through-but of course you would have a strong moral duty to be sure you paid them back.
Answered on Nov 30th, 2016 at 4:25 PM