Chapter 13...Help!

[jafitzsim]

I got divoreced and had to file chapter 13. I am currently a year into my plan. I still own my home with my ex husband to keep the kids in the school district and could not sell becasue of the market. We fell behind two months prior to my bankruptcy, so that was added into the plan. My ex failed to pay any of the mortgage for the four months after me filing and we had to come up with a payment to the mortgage company. This happened again and we were set up on a strict six month payment plan with the lawyers representing Chase. My ex paid the first two months, but did not pay his share of the Nov. and Dec. mortgage due to car and house repairs. The lawyers are motioning to remove the automatic stay and take the house. I believe my ex just wants to get rid of the house since we have now been divorced for almost 4 years. I am thinking of doing the same thing and starting out fresh. Is this possible under a Chapter 13 and will this affect my payment plan? Any advice would be greatly appreciated? Also, the lawyers for Chase will be going to court Jan 29th, sdo I need to be there? My lawyer is not much help.

[justbroke]

Is this possible under a Chapter 13 and will this affect my payment plan? Any advice would be greatly appreciated? Also, the lawyers for Chase will be going to court Jan 29th, sdo I need to be there? My lawyer is not much help.

Yes to both questions. You will be allowed the standard "allowance" for housing for a family of your size and your area (County). You would be surrendering the home and having your plan modified. This takes a little work, so your lawyer will need to do this.

I don't understand why you say your attorney is not much help. He's probably waiting on your decision, since it appears that you have continued to try to keep this home even though you kept falling behind, even post petition. it truly is surprising that you made it this far.

You do not need to be in Court unless you're fighting the motion for relief from stay, but I'd say, based on your history, that it would be a losing battle. Suffice it to say that they are going to get the Motion granted and will proceed with foreclosure. How long you'll be in the home is anyone's guess at this point. You need to start preparing to move.

If you're now satisfied with knowing that you're losing the home... then contact your attorney and tell them that you need to modify your plan to deal with the surrender and foreclosure of the home.

[jafitzsim]

Thanks for your advice, yes I am surprised I made it this far...I guess I'm just looking for some kind of guidance. This whole thing has put me through alot of sleepless nights.

[justbroke]

It's time to take the emotional stress out of this. Make an informed business decision. Perhaps the house was the single largest debt weighing on you. You need to look at it from a business perspective and if the house is worth it (by taking how much it's worth and deducting how much it's worth). Sometimes that's difficult to do, because emotion gets tied to tangible things like property, but you need to get through that. Until that happens, I'm afraid you'll have more sleepless nights.

Yes, some attorneys lose interest once a Plan is confirmed, because normally a case is on autopilot. Engaging your attorney may cost you a few more dollars, but you should be able to roll that into the plan. Think about what you want to do and where you want to be financially at the end of this. Then make that decision to detach yourself from the home.

[jafitzsim]

Yes, I believe now I need to get rid of this burden to move on with my life. It is the last financial tie with my ex. I do not want to go every month wondering if he has money to pay his share of the mortgage. I wasn't sure I could include the house in my bankruptcy. I know I will be taking a major hit financiually because I do believe there is still equity in the house. I know I won't qualify for a Chapter 7...I'm just worried how much my payment plan will increase.
Thanks for your advice!

[VAREDUX]

No legal advice, just empathy and concurrence with the advice to LET GO of the house and MOVE ON. That's what I did last year, after my ex stopped providing support. It was a 2-income house. And now I was a one-income mom of 3. So we down-sized. Moved to a much more modest rental house about 5 miles away. Kids got to stay in their same schools. If your mortgage company won't modify your loan to make it affordable on YOUR income alone (I tried, mine wouldn't), and you keep trying to make this work (simply because it COULD, "if only..." , and because it would be NICE if it did...) you're headed for a nervous breakdown. Deep breath, shoulders back, gather the kids and tell them life is about change - embrace the change. :-)

[jafitzsim]

Thanks for the support...I can foresee a nervous breakdown in the near future if I don't let go. I'm ready to move on with my life!