House in plan question!

[jmonez]

Question: I have already filed for chap 13, but at the time I filed I was not planing on surrendering my home. I have now decided to do so. I understand that if a payment to a creditor is behind after filing for b.k they can dismiss the case. I am just wondering if this still applies if I am planing on surendering the home? I would prefer to save the money and not make this months mortgage payemnt if possible, any ideas? Also does anyone know how long you can stay and remain in the home if surrendering it in the plan, before i must move and find another place to stay?

[BornAgain]

Yes, you need to be current on your mortgage payments!!

You can stay in the house until the moment the sheriff comes to ask you to leave, but having arrangements made and leaving before then always saves lots of embarrassment. Exert some control and you'll feel better for doing the moving on your own terms and on your own time frame.

Best of luck to you. Hang in there!

[jmonez]

i just got off the phone with my attorney who says he is amending to add the house in the plan for surrender. But he also told me whe do not need trustee approval to do so just yet, he advised me to just contact my lender and tell them I would like to surrender or do deed in lieu of forecloure. does this sound right? He also said I do not need to continue paying my mortgage from this point on if I plan on doing the surrender, even though i have already filed. He said just make the proposed monthly payment to the trustee. we have not been confirmed yet. Does this make sense and has anyone delt with this before? It would be great to not have to keep paying the mortgage so i can save money to find a rental home and pay the deposit,and first mo rent, and moving expenses i will have.

[BornAgain]

Well it doesn't sound like my experience, but I'd go with what your attorney told you.

Glad to hear things are working out!

[lrprn]

Yes, you need to be current on your mortgage payments!!

Be careful here, BA. You need to be current on your mortgage if you are filing Ch 7 and want to keep your house.

When filing Ch 13 (and you are in the Ch 13 forum), you can be behind on your mortgage and still keep your house as long as the arrears are included in your plan. You can also change your mind and decide to surrender your house - all it requires is an amended plan which the OP's lawyer is doing.

Which chapter did you file, BA?

jmonez, sounds like your lawyer is giving you good advice. I'm sure it was tough to make the decision to surrender your home, but this way you'll get a truly fresh start without a house you can't really afford dragging you down. Congratulations for doing what's best for you and family in the long run.