Ch 7 to Ch 13 and 2nd mortgage?

[happy_ira]

If you can find an appraiser that will appraise it under $397k with comparisons to other houses in the area you can file a motion with the court to have the 2nd mortgage made into an unsecured debt... Let me see if I can find an article on this.

This whole issue of second mortgage has caught my eye. When I first had the appraisal done, before the entire collapse of financial markets and other real estate, the value of my home was $400k. Now it is down another $10k to $390k, which I will have a third party appraiser do an appraisal on.

SO.... as I understand it, since my first mortgage of $397k is worth more than my home of $390k, I can shove the 2nd mortgage into unsecured debt.

At the same time, it looks like my US Trustee is headed to moving my Ch 7 into a Ch 13, therefore I'd like to do the above. Can anyone help me/point me in direction of what I need to file with the court in order to do so?!? Like specifically the next step once I have the appraisal showing $390k. What do I do with it?

[biotechsolution]

If you convert to a 13 you will have another 341 hearing with a new trustee. You'll have to put together your plan payment amount before the hearing, what you could pay per month.

[happy_ira]

If you convert to a 13 you will have another 341 hearing with a new trustee. You'll have to put together your plan payment amount before the hearing, what you could pay per month.

And how do I get the 2nd mortgage into that bucket of unsecured debt? Do I just list it? I mean, how does it literally go into the unsecured "file" in life?

[biotechsolution]

you will have to file a motion in your chapter 13 to strip the 2nd mortgage from secured to unsecured.

[happy_ira]

you will have to file a motion in your chapter 13 to strip the 2nd mortgage from secured to unsecured.

Okay. Naive follow-up question: how do I "file a motion" to do so? Oy vey.

[biotechsolution]

you are putting the cart in front of the horse, way in front. These are issues done after you've converted and before your 341 meeting.

[justbroke]

Okay. Naive follow-up question: how do I "file a motion" to do so? Oy vey.

Are you a pro se filer? If so, I can give you my template (stripped to protect the guilty). It's not that hard. (If you're filing with an attorney, your attorney must file it.)

What I filed was a "VERIFIED MOTION TO AVOID LIEN AND DETERMINE SECURED STATUS OF BIG, MEAN, BANK INC.". In that motion, the pleading, I just state the facts, how much it's assessed for (by Tax Assessor), how much the FULL appraisal by a LICENSED appraiser, and what the TOTAL AMOUNT OF THE SECURED CLAIM IS. You should attach copies of each of those valuations as exhibits.

Okay, I'm just giving you the preview Basically, your pleading ends with something like...

[justbroke]

As biotechsolution wrote, you need to get a filed chapter 13 first, and then wait for the Secured Claim to come in for at least the lien that you want to strip.

However, this is District dependent. Some districts allow you to strip by motion... other's it's by Adversary Proceeding, which is a lawsuit and much more complex!