Chapter 13 plan, and first mortage arrears now part of first mortgage...

[espo1357]

My chapter 13 payback went 100 percent into paying back the arrears on my first mortage. At the time, I was happy with that because all of the money went to a secured (even though my home is still 100k plus under).

Recently, my loan was modifed, through HAMP, and the arrears went back into the mortgage, so now there is no arrears.

So, should I get the chapter 13 modified? Specifically, I want to get a lower payback (I miss the means by about 25k over median in my state) and I want an earlier discharge (I have it at 5 years with this plan, but want 3).

What would most likely happen here?

Thanks!

[lrprn]

What would most likely happen here?

From what you've described, since your arrears have been taken care of with the your mortgage modification and you don't have any other reason to be in Ch 13, you *might* be able to convert your Ch 13 to Ch 7 and be done with it. Have you discussed this with your laywer yet?

[espo1357]

From what you've described, since your arrears have been taken care of with the your mortgage modification and you don't have any other reason to be in Ch 13, you *might* be able to convert your Ch 13 to Ch 7 and be done with it. Have you discussed this with your laywer yet?

Thanks for your feedback.

Didn't qualify for the 7, as I make too much.

Also, the 13 will help me get rid of the second mortgage. Meeting with my lawyer next week to discuss the modification of the 13, so, hopefully I can get a 3 year chapter 13, and less money to pay back.

Not sure how it all works or if it is worth it. Seems like once I paid the lawyer, he lost interest in me. But, I am not going away that easy!

[newbie2]

Thanks for your feedback.

Didn't qualify for the 7, as I make too much.

Also, the 13 will help me get rid of the second mortgage. Meeting with my lawyer next week to discuss the modification of the 13, so, hopefully I can get a 3 year chapter 13, and less money to pay back.

Not sure how it all works or if it is worth it. Seems like once I paid the lawyer, he lost interest in me. But, I am not going away that easy!

By "I make too much" does this mean your income is over the median? If it is, then you can't do a 36 month plan unless you pay everyone (unsecureds) 100%.

[espo1357]

By "I make too much" does this mean your income is over the median? If it is, then you can't do a 36 month plan unless you pay everyone (unsecureds) 100%.

Ya, above the med.

That's great info then. sounds like it would be better to stay on my current plan, where the money is going to the secured first (even though the arrears was taken care of AFTER I filed and got the loan modification), right?

Oh well. I can afford the plan I am on.

I was just concerned that since the arrears is taken care of, that the money I put into the plan, would not go to the secured. But, I think it still does, regardless of how things changed AFTER the BK, right?

Thanks for your feedback!

[momofthree]

I would suggest speaking to your attorney about this matter. I don't know what the law entails, but if the trustee discovered that they are simply paying down your current first mortgage to the detriment of your unsecured creditors, and you never notified anyone, I imagine you could possibly face dismissal. Then again, it may not matter. Either way, I'd inform your attorney and ask him if you can just continue on with it the way it is.

Is your case already confirmed?

[espo1357]

I would suggest speaking to your attorney about this matter. I don't know what the law entails, but if the trustee discovered that they are simply paying down your current first mortgage to the detriment of your unsecured creditors, and you never notified anyone, I imagine you could possibly face dismissal. Then again, it may not matter. Either way, I'd inform your attorney and ask him if you can just continue on with it the way it is.

Is your case already confirmed?

not confirmed yet. however, attorney assistant (attorney is never around) said that the payments would go to the first and to irs, as I file high, and ususally owe every year.

its a joke at this point. important thing is that I know I can complete any 13, as I have a great education, very marketable, and work hard.

but, I just don't want to waste money.

lawyers are something.