Chapter 13 confirmed but can't afford plan payment.

[Treyskii33]

On December 2009 my Mother In Law filed chapter 13 to save her house. Of course like many, she got one of those bad loans. Anyway, over the course of 5 months the attorney had been filing a continuance until the IRS and STATE amended their claims. So finally the BK 13 was confirmed May 2010. There was so many screw up and confusion that her plan payment is way too much for her to afford.

She has decided to default on the plan because 1 the house is totally not worth a penny investment nor payment. She is at this point 150k upside down..lol. The question is, if she stops paying her payments, how soon will she absolutely need to be out of the house. Also, what will happen to here car. She makes the payment every month.

Thanks

Trey

[newbie2]

On December 2009 my Mother In Law filed chapter 13 to save her house. Of course like many, she got one of those bad loans. Anyway, over the course of 5 months the attorney had been filing a continuance until the IRS and STATE amended their claims. So finally the BK 13 was confirmed May 2010. There was so many screw up and confusion that her plan payment is way too much for her to afford.

She has decided to default on the plan because 1 the house is totally not worth a penny investment nor payment. She is at this point 150k upside down..lol. The question is, if she stops paying her payments, how soon will she absolutely need to be out of the house. Also, what will happen to here car. She makes the payment every month.

Thanks

Trey

What your mother-in-law needs to do is contact her attorney and make an appointment to sit down with him (or her). She can give back the house during her plan, but the plan could change if allowable rent for your area is less than the mortgage payments. Also, she very well could qualify to have the case converted to a Chapter 7.

She really needs to have another appointment with her attorney.