Chapter 13 discharge after chapter 7 discharge

[lilloarin]

Hi, I live in CA and received a chapter 7 discharge about 2 years ago. Since then, I filed a chapter 13, which was granted and I have been making me monthly payments to the Trustee. However, I have since learned that once I complete my plan, I will not receive a "discharge". Can someone explain in laymens terms what this means? Will my 2nd mortgage be officially discharged as it was included in my chapter 13 plan? Will I be able to get a new car since majority of the car companies require a discharge? Unfortunately, my lawyer never explained this to me and now im worried albeit a little late

Thank you!

[despritfreya]

I. . . received a chapter 7 discharge about 2 years ago. . . I filed a chapter 13 (and) have since learned that once I complete my plan, I will not receive a "discharge". Can someone explain (this)

You are working on the back half of what we refer to as a “Chapter 20” - filing a Chapter 13 on the heals of a Chapter 7. You are not entitled to a discharge in the Chapter 13 since you did not wait four years from when you filed the 7.

Will my 2nd mortgage be officially discharged as it was included in my chapter 13 plan?

I assume you had the second mortgage when you did the Chapter 7 and did not reaffirm it. If that is correct the underlying loan was discharged but the lien remained on your home. If my assumption is not correct (either your took out the 2nd after you filed the 7 or you actually reaffirmed the 2nd while in the 7) then you do have a problem since you will not be getting a 13 discharge.

However, my guess is that you did, in fact, discharge the loan in the Chapter 7 and have filed the 13 for the purpose of removing the lien (strip off). Once you complete the Plan the lien should officially be removed from your property.

Will I be able to get a new car since majority of the car companies require a discharge?

You have a discharge - your Chapter 7 discharge. I do not know if the current case will cause a problem but for possibly not being able to purchase a vehicle until the case is closed because you cannot get financing. On the other hand, many folks do finance vehicles during the course of the Chapter 13.

Unfortunately, my lawyer never explained this to me

Then you need to meet with him/her and go over your concerns.

Des.

[lilloarin]

Dear Des,

Thank you so much for taking the time to thoroughly explain this to me. Your assumption concerning my junior lien was correct so that is good news for me! I guess I will deal deal with the car situation when the time is right as I have two years left on my lease. Thanks again. I really appreciate it.

[ld2366eh]

I read some of your old threads and had a general question (out of curiosity). Did you initially file a 13, then your 2nd protested and you weren't able to get a lein strip, so you changed it to a 7? How were you able to get the lein strip approved now with this 13? Also, does your plan payment include payments to your discharged 2nd mortgage? I'm curious how it works, because we filed a 7 and also have a 2nd mortgage fully underwater. We may try to settle it later if we decide to stay in our home (trying to get a mod). I haven't asked too many questions on the "Chapter 20" yet, since I don't know if we could even do it down the road. I would love to hear your story if you have the time!

LD

[lilloarin]

Hi LD,

I would be happy to explain. Yes, I iniitally filed a 13 in 2010 to hopefully strip my second and pay off credit card debt. However, the 2nd rejected it. Therefore, we ended up converting my 13 into a 7 and all of my debt has since been discharged. Since then, the value on my home has gone done even more + we accumulated some tax debt. So, I met with my attorney and he indicated that we could filed a "Chapter 20" which is essentially a Chapter 13 after a 7. Our Chapter 13 has been approved by the Trustee and we are now making payments and my 2nd lien is now included in the plan. Also, my lawyer just confirmed that once I complete my 5 year plan, my 2nd lien will be dimissed. Let me know if you have any more questions or would like further info. All the best, lilloarin