Timeline for foreclosure when reaffirmng loan in a Ch 13 and now surrending condo

[freeme0215]

Hello,

I am currently in a Ch 13 and I have been sent a "Notice of Deliquency" from the trustee. The notice states I have 15 days to modify the 13, or 45 days from June 9th to get monthly back to a current status. I do nothing there is a dismissal and I have to wait 180 days to refile under a 7.

I am trying to protect a lump sum payment I received from Social security disability as my attorney said that there is a possibility the trustee could take this money from me. It is not a 100% gty I can keep this money. So, I was thinking of allowing the 13 to go to a dismissal status.

If I do go with dismissal, my question has to do with the timeframe(Florida) of the foreclosure proceedings.


Is the foreclosure accerlated as I was in a Ch 13 and when they request to lift the automatic stay, they can accerlate the process or is the foreclosure process the same as someone that has not had a BK dismissal?

I was paying my mortgage till April 23rd. As the dismissal date is July 23, do they wait for the dismissal to be applied?


When will the creditors start contacting to demand payments and will they go for judgements quicker or do they start with the letters and calls?

Appreciate all responses...

[lrprn]

I am currently in a Ch 13 and I have been sent a "Notice of Deliquency" from the trustee. The notice states I have 15 days to modify the 13, or 45 days from June 9th to get monthly back to a current status. I do nothing there is a dismissal and I have to wait 180 days to refile under a 7. ... I am trying to protect a lump sum payment I received from Social security disability as my attorney said that there is a possibility the trustee could take this money from me. It is not a 100% gty I can keep this money. So, I was thinking of allowing the 13 to go to a dismissal status.

Understand that even if you allow your 13 to be dismissed, you *may* have to wait at least a year or even longer after the month you received your SS disability payout to file either a new Ch 7 or file Ch 13 again to make absolutely certain your payout is safe from seizure by your trustee.

If you don't trust the information your current lawyer has given you, then please start looking for other bk representation now. You need to clearly understand the consequences of what you are doing by voluntarily dismissing your 13 and what all the potential consequences are before proceeding. Keep in mind that many bk lawyers may tell you they can't see you and can't provide any legal advice about your case until you fire your current lawyer.

Is the foreclosure accerlated as I was in a Ch 13 and when they request to lift the automatic stay, they can accerlate the process or is the foreclosure process the same as someone that has not had a BK dismissal?

The automatic stay is in place until your 13 is dismissed by your local bk court and all the creditors are notified. Read about the normal Florida foreclosure process and timeline here - http://www.foreclosurelaw.org/Florid...losure_Law.htm

I was paying my mortgage till April 23rd. As the dismissal date is July 23, do they wait for the dismissal to be applied?

The mortgage lender cannot proceed until they are notified your Ch 13 has been dismissed by the bk court.

When will the creditors start contacting to demand payments and will they go for judgements quicker or do they start with the letters and calls?

Within days of when the creditors receive the news you have allowed your Ch 13 to be dismissed, the calls and letters will start up again. Your creditors will tack on late fees and penalties for the entire time you were in Ch 13, and it's perfectly legal for them to do so. Just how quickly the calls, demands for payment, and/or judgment filings start up again depends on the individual creditor or collection agency that currently owns the debt.

[Pandora]

I am trying to protect a lump sum payment I received from Social security disability as my attorney said that there is a possibility the trustee could take this money from me. It is not a 100% gty I can keep this money. So, I was thinking of allowing the 13 to go to a dismissal status.

The trustee cannot take your SSD; social security proceeds are protected by federal law 42 USC 407(a). You need to ensure their protection by not co-mingling with other non-protected assets (i.e. hubby's paycheck / joint bank account). If however you have co-mingled them, dont fear - so long as you can show your money vs. anyone elses... they should be fine. You must list it as an asset, but under laws, its exempt unless you owe the fed. gov't (IRS, etc) money for back taxes or student loans, then they can take it. SSD doesnt count in the means test, but it will count in Schedules, so you need to ensure you actually can file Ch. 7 based on what SSD will project your DMI to be.


Here is the law

42 U.S.C. § 407 provides:

"The right of any person to any future payment under this subchapter shall not be transferable or assignable, at law or in equity, and none of the moneys paid or payable or rights existing under this subchapter shall be subject to execution, levy, attachment, garnishment, or other legal process, or to the operation of any bankruptcy or insolvency law."

Please look here: http://www.alperlaw.com/statutory_protection.html

and find the Disability Payments section