QUESTION
If we convert from Chapter 13 to Chapter 7, will we lose our home?
Asked on May 05th, 2014 on Bankruptcy - Michigan
More details to this question:
We cannot afford the trustee/mortgage payments, bills, cost of living for a family of 6, etc. My husband is active duty (USN). Is there any other alternative to foreclosure? Thanks!
7 ANSWERS
Not really. The bottom line is this: If you want to keep the home, you have to stay current with your Chapter 13 Trustee payments and your regular mortgage payments, post petition. If you convert to a Chapter 7, you will be required to surrender your home. Perhaps you can stretch out your payments over 60 months (assuming you are in a 36 or 48 month repayment plan now). You really should talk to your Chapter 13 attorney for advice. If they are unavailable, contact an experienced bankruptcy attorney, and pay them to look at your file and discuss options.
Answered on May 06th, 2014 at 4:09 PM
There are too many missing pieces of the puzzle to be able to answer your question. Were you behind on your mortgage? Have you applied for a loan modification? If you receive a loan modification, by how much would your payments need to go down to let you afford to resume payments? Are your needs for a modification realistic? Do you have equity in your property? Have you talked to a local realtor about selling or short selling the property?
Answered on May 06th, 2014 at 11:45 AM
In bankruptcy you can pay your back mortgage over time but must be paid up on current charges.
Answered on May 06th, 2014 at 10:29 AM
Bankruptcy Attorney serving Livonia, MI
at
Charles J. Schneider, P.C.
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There is not nearly enough information provided to answer this question. The answer should be provided by the attorney you hired for your Chapter 13.
Answered on May 06th, 2014 at 9:22 AM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
2 Awards
This answer pertains to NJ law.It will really depend on the equity situation on the property and the arrears (how far behind in payments you are). If there is little equity the Trustee will normally abandon his interest in the Property. Also, NJ, we have a loss mitigation/loan modification program through the Bankruptcy Court.
Answered on May 06th, 2014 at 9:07 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Doubtful, the real principal is you cannot have what you cannot afford, bankruptcy or not.
Answered on May 06th, 2014 at 8:58 AM
I cannot answer that question via email. You need an attorney to evaluate your situation by getting an understanding of your current situation and looking at the relevant documents.
Answered on May 06th, 2014 at 8:19 AM