Converting Chapter 13 to Chapter 7

[UpaCreekinCA]

BofA is full of it. There is not minimum or maximum income to qualify or not qualify for a loan mod. If you have equity, that is why they won't deal with you. If your P&I, insurance, PMI (if you have one) and taxes are more than 31% of your income, HAMP is an option. My servicer did an internal mod but it took months and scores of phone calls back and forth and us stop paying so they knew a $600 a month increase was not going to be taken.

[olivies]

I'm wondering if it's best to speak with your attorney about filing a modification. Decreased income and increased expenses (even standardized expenses, such as housing and groceries, increase with an additional family member) are perfectly legitimate reasons to modify a chapter 13 plan. Someone can correct me if I'm wrong, but I believe it is the judge's decision not the trustee's, although the trustee's input may weigh into the judge's decision.

[empowered]

It would be a shame to have to go through a dismissal and then to refile. If you have to go that route you should also check to see if there will be a six-month prohibition on refiling. Conversions only cost $25 and, so long as you remain in the same state you filed in, are not difficult to accomplish. I recently also read that in some circumstances it's possible to just have your Chapter 13 discharged.

Good luck.

(My 13 was dismissed when I couldn't keep to the plan. I had filed the 13 knowing I'd be moving to a new state but unaware that it could make a difference in the options available to me. I'm filing Chapter 7 next week; no prohibition for me but it took about six months after the dismissal to get my ducks in a row anyway.)

[mrslick]

Thank u all. Getting the loan mod will be great, but i think it is just another way the trustee is trying to keep in ch 13. When she told my attorney about doing the loan mod she said it will take a long time to complete the loan mod. We clearly can not afford the plan.