QUESTION
What happens to the home equity in a chapter 13 bankruptcy?
Asked on May 06th, 2012 on Bankruptcy - Florida
More details to this question:
So I am looking to file for chp 13. Not pro se of course. I contacted an attorney and she had me go home and complete some sort of a credit counseling course. She is out of the office for the week and I have been a little worried since I have been some reading on the internet.Now I am filing to save my home from foreclosure. I can pay both the back amount and the current payments. What I am worried about is the relief from stay. I have no equity. In fact the home is under water. Will the mortgage company try and seek a relief from stay. I read something online and now I am so worried. Any help? I am paying one hundred percent into the plan. No car or credit cards. Just the home.
2 ANSWERS
Burton J. Green
The mortgage company is not going to do anything once you have filed if your plan provides for curing the arrears and continuing to make all payments. My suggestion is that you discuss filing a loan motion to try and lower your mortgage payments if otherwise eligible.
Answered on May 11th, 2012 at 12:12 PM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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The problem is that perhaps bankruptcy is not the best thing for you, especially if all you are really trying to save is the non-existant equity in your home. You may be better off to look into a modification of the mortgage, which is being done more often now. The problem arises, as I see it, in that when you file a chapter 13, the mortgage company is more or less assured that you will not be modifying your mortgage. The mortgage company will not be seeking a lifting of the automatic stay if you are current. So, before you file, look into a modification program that might better suit your needs.
Answered on May 09th, 2012 at 1:40 PM