Filed Ch 13 on 12/31/08, can I ....?

[screwedupbyRE]

hi all,

I finally filed for ch 13 on 12/31/08. Attorney proposed payments of $200 pm for 36 months.

Situation: Did chapter 13 so that I can do lien strip. (bought house for 800k, current value is 500k. First loan 640k; second 160k)

There's lot of buzz that local BK judge might be empowered to cramdown the loan value.

Questions:
1) Can I withdraw the filing and wait for this bill to pass? (and then re-file?)
2) In case I chose to let go the house, can I change it to chapter 7 right away before the 341 meeting?

any insight please?

Thx much in advance.

[Flamingo]

If the bill passes, it could take months/years. ALso, since you already filed you would have to dismiss your Chapter 13 and cannot refile again for several months I believe - speak with your attorney.

[justbroke]

There's lot of buzz that local BK judge might be empowered to cramdown the loan value.

Just that... only buzz. Besides, the last time they modified the Bankruptcy Code in 2007, it was only for new loans.

1) Can I withdraw the filing and wait for this bill to pass? (and then re-file?)

Yes, if you voluntarily dismiss your case, you have to wait 6 months to refile. If you have arrearges and other issues with property taxes, this could expose you to expedited foreclosure.

2) In case I chose to let go the house, can I change it to chapter 7 right away before the 341 meeting?

If you qualify for a Chapter 7.

You will need to consult your lawyer as this is what I'd call strategic bankruptcy. One needs to be familiar with local rules, local "customs" (undocumented ways things are done in that District), and of course, familiarity with these options.

I don't see anything happening with the Bankruptcy Code anytime soon (6 months), although there will be lots of talk. Then they have to reconcile the Code.

If it's anything like the BAPCPA of 2005, there's lots of writing to be done.