what happens to house included in Chap 13?

[jkb]

We have been paying on our plan since October 08. I guess our confirmation was in May 09. That's when the trustee accepted the payment plan anyway. We have included our house in the chap 13. It's in the process of being foreclosed on. Will we be responsible for the balance that the bank doesn't get for the house? Can the trustee come back in and change our payment amount after they have accepted the payment plan? We are on 100% payment. This is all new, pretty confusing. Don't really like our attorneys. Can't get info from them. Thanks for any help.

[optimistic1]

I take it that you included your house payment into your plan to make up some arrears? And now you still can no longer make payments?

If you are in a deficiency state, then you might be responsible for the balance, although, you might even be able to add it into your new plan, as unsecured debt.

That sucks your attorneys are unwilling to help you, perhaps filing a complaint with the state board or talking to the trustee will coax them into doing their job.

You plan payment can be modified, but your attorney's need to help, the trustee wont change it for you.

[jkb]

We included the house in the beginning so the courts knew about it. We just got notice that Countrywide - or whoever owns them now - as received a stay so they can procede with the foreclosure. We aren't in default or anything. We are paying $850 a month to the trustee. I just wondered after the house sells do they add the balane remaining from the sell onto the original bankruptcy. And if so, can the trustee come and ask for more money to cover that or does he rearrange the payments to the other creditors and still use the same $850 payment.

[justbroke]

When you are in a Chapter 13, and have surrendered your home, any deficiency created (after the lender forecloses) will be added to your plan as an "unsecured" debt. The lender will get a pro rata share of whatever the unsecured creditor pool is getting.

If you receive a discharge in your Chapter 13 (or through another Chapter after conversion), that amount will no longer be your responsibility. However, if your case is dismissed and/or you don't receive a discharge, you will be responsible for any discharge.

There is one other caveat. Some States don't allow deficiency claims based on the type of loan, whether it was a "purchase money" loan, and a host of other factors. If this is the case, there is no deficiency anyhow.

[jkb]

Thanks for the info. We just feel like there is still this huge weight hanging over us w/ this house. We were afraid that the trustee could come in and say since there is X amount of new claim then you need to pay X amount more to cover it all. We feel just as stressed since we filed than before. The only difference is instead of creditors knocking on the door you wait to hear from the trustee every day.

[justbroke]

Thanks for the info. We just feel like there is still this huge weight hanging over us w/ this house. We were afraid that the trustee could come in and say since there is X amount of new claim then you need to pay X amount more to cover it all. We feel just as stressed since we filed than before. The only difference is instead of creditors knocking on the door you wait to hear from the trustee every day.

You're in a confirmed plan. You shouldn't even be worrying about the Trustee now. So long as you're in Plan, you'll only hear from the Trustee once or twice a year. and that will just be a report from your Plan.

To allay your fears, the Trustee can't come in and change your payment unless they file a Motion to do so. They usually don't even bother a person who is in Plan and making payments as scheduled. For your specific inquiry, regarding the home, they can't just change your payment. Your plan has already factored it in.

You should be in the "smooth sailing" portion of your Chapter 13 now!

Having wrote all that, you're in a 100% Plan now. I don't know if any deficiency could affect your payment or not. If $850/month was your "disposable monthly income", then it will not (can not) change, just because more unsecured debt was added to your Plan.

[jkb]

Thank you so much for making my mind at ease! We have been trying to get answers to these questions without much luck. I will try and just relax and keep doing what we are doing.