6 months into a Ch 13

[smegma11]

I am 6 months into a chapter 13 and I have made a terrible error by using a local Family Legal Center here in Florida.

In my initial meeting I gave my situation to the Lawyer. 1st mortgage $155k, Secong $44k credit cards $13k and 3 cars. Home appraised at $144000

He recommended I do a 13 and strip the second lean. He said it would just be gone. The only thing is, it added to my unsecured debt. He failed to ask any financial info from me and I ended up with a 100% 5 year payoff plan. I had $55k of unsecured debt now instead of $13K .

I was originally given a monthly payment of $2900 per month. I showed them how my income had decreased and got it down to $2400. 2 months later I found that they had given my mortgage as $1100 instead of the $1400 which was the escrow added to the payment. So now they have adjusted me back to $2900 which I can't afford.

Anyway, the business I used has a Lawyer for looks only. He doesn't know the answers to any of my questions, he has to ask the paralegal that runs the business and they just use his Name and Title.

My question is this, I would like to know what would happen to the stripped
2nd with HFC if I do a Ch 7 after my 8 years is up since my last Ch 7 ( 9 months away)? Can I keep my house, and lose the unsecured debt or will the stripped mortgage be reinstated? I only did the Ch 13 to rid me of that debt. I was paying off a $45000 loan at $600 per month and only paying $6 principle per month. I was a prisoner of the loan.

I hope I didn't lose you but what happens to a 2nd that has been stripped in a Ch13 and then changing to a ch 7?

Thanks

[justbroke]

Anyway, the business I used has a Lawyer for looks only. He doesn't know the answers to any of my questions, he has to ask the paralegal that runs the business and they just use his Name and Title.

Sounds like someone should be reported to the Bar and/or U.S. District Court.

My question is this, I would like to know what would happen to the stripped 2nd with HFC if I do a Ch 7 after my 8 years is up since my last Ch 7 ( 9 months away)? Can I keep my house, and lose the unsecured debt or will the stripped mortgage be reinstated? I only did the Ch 13 to rid me of that debt. I was paying off a $45000 loan at $600 per month and only paying $6 principle per month. I was a prisoner of the loan.

I don't understand at all what you're trying to say. You are stating that your 2nd is stripped, but if your Chapter 13 fails, then it's not stripped. If you file allow your Chapter 13 to be dismissed, and then file 9 months from now are you asking what about the 2nd? First, the 2nd is not stripped if your Chapter 13 is dismissal or you convert to Chapter 7. Since you're barred from filing a Chapter 7 for 9 more months, you would wait to file the Chapter 7. It is highly unlikely that your 2nd would actually foreclose on the home in that time, given the value.

In any event, the 2nd lien will still be there after this is all over, including your Chapter 7. That's because you don't get the benefit of the lien strip without completing the Chapter 13 and receiving a discharge in the Chapter 13.

I hope I didn't lose you but what happens to a 2nd that has been stripped in a Ch13 and then changing to a ch 7?

It hasn't been stripped, unless and until you receive a discharge in your Chapter 13. Since it reads as though your Chapter 13 is failing, you'll be getting a dismissal, not a discharge.

I really suggest that you get several (3+) consultations with some attorneys that do this for a living. You have some issues to contend with. There's something totally wrong with your numbers, and I don't understand the 100% payback. Even if it's 100% payback, your mortgage numbers are wrong (according to you) and you need to have that plan reworked, amended and the attorney should file a Motion to Modify Confirmed Plan.

Otherwise, filing Chapter 7 (in 9 months) isn't going to fix the lien issues with the 2nd.