Post-petition mortgage arrears

[worried]

Hello everyone...

I am 6 months behind on post petition mortgage. No relief from stay has been filed yet. I need to keep the house. My question is would the trustee allow me to modify the plan if I brought more money into the household like a second income to cure the arrears? Would he also allow me to ask for more rent from my daughter to cure the default? I need about 200.00 more a month to cure the arrears. Only been in a chapter 13 for 16 months and 44 months to go. How many times can i have the plan modified within the 60 months? Already been modified once. Also is it better to try to modify before they try to seek relief from stay?
Thanks much

[LadyInTheRed]

There is no limit to how many times you can modify. You said in another thread that your plan already pays 0% to unsecured creditors. So, each time you modify, more money will come out of your pocket to pay your attorney fees.

It is probably better to seek modification before they seek relief from stay.

None of us can tell you what the trustee will allow and what the judge will allow if you have to go to the judge. You need to talk to your attorney.

[worried]

There is no limit to how many times you can modify. You said in another thread that your plan already pays 0% to unsecured creditors. So, each time you modify, more money will come out of your pocket to pay your attorney fees.

It is probably better to seek modification before they seek relief from stay.

None of us can tell you what the trustee will allow and what the judge will allow if you have to go to the judge. You need to talk to your attorney.

Yes I believe there is no wiggle room left in my plan. My daughter who lives with me is a guarantor for my legal fees. I better get moving on bringing in some more money to the household. I do not want to convert to chapter 7. And I'm afraid of taking the chance of refiling a chapter 13.

[LadyInTheRed]

Why don't you want to convert to a 7? Because you can't bring your mortgage current first?

[worried]

Why don't you want to convert to a 7? Because you can't bring your mortgage current first?

Yes I have mortgage arrears in and out of the plan. I probably would lose the house as I am not current on the mortgage.

[worried]

Since I owe mortgage arrears of about 25,000 within the chapter 13 couldn't I file a chapter 7? I owe approximately 100,000 on the mortgage and I believe it would only sell for 103,000. My states exemption is 75,000. Why am I in a chapter 13 and having 650.00 a month garnished from my checks. I'm not making it at all. I would like my paychecks back.

[LadyInTheRed]

If you file a Chap 7 without bringing your mortgage current and can't work something out with the lender, the lender will eventually foreclose. But, at least the debt will be discharged, assuming you qualify for a discharge.

Looking back at your posts, it appears this is at least your third Chap 13. You got a Chap 13 discharge in October 2007 and were behind on your mortgage. You filed another Chap 13 in April 2008 to stop foreclosure. In March 2012, your lender filed for relief from automatic stay. You had 8 months left in a 55 month plan and were talking about extending the plan to 60 months to include post-petition arrears. So, I am assuming you did not get a discharge in that case because it was filed to closely to the first. If the current case is dismissed without discharge I think you can get a Chap 7 discharge, but check with your attorney to be sure. If the lender requests relief from the automatic stay before you request dismissal, then you would have to wait 180 days to file a Chap 7.

I think it may be time to accept that you can't afford to keep the house. File a Chap 7, get the debt discharged and move on if you can't work out something with the lender to catch up.

[worried]

I would be afraid i wouldnt be able to get qualified to rent. I have an adult daughter who works but would need to live with me. She is not able to live on her own. the only way i see keeping it is if i bring in more money.

[worried]

And i was thinking the trustee wouldnt sell the house on me if there were no equity

[LadyInTheRed]

It's not the trustee who is going to take the house. It sounds like the little bit of equity you have is covered by the homestead exemption. It's the lender who is likely to take your house.

Yes, if you are going to keep the house, it sounds like you need to increase your income. Or get a loan modification, but I think you have already tried that.