please help...dont trust lawyer

[bshaw96]

Hoping someone can help because our lawyer is useless. Despite 3000 to handle our case, he has done nothing but the initial paperwork. Wont return calls and gives inaccurate info. Here's the question. In 2008 we filed chapter 13. Our payments are over 1000 month. Because of this, our mortgage fell behind and they filed to have stay lifted from house. It was. So we were able to work out a forebearance agreement to keep the house. We simply can't afford the 13 anymore and are converting to a 7. Our question is what will this do to our agreement with our mortgage lender? Will it void the agreement? Our lawyer said because the stay was lifted the house wouldn't because affected by a 7. Is this true? Could we just continue with the forebearance agreement during and after 7? We are prepared to give up the house, but not if we don't have to as rent isn't much cheaper here.

[bshaw96]

It is my understanding the mortgage debt will be wiped out and we would need to reaffirm to stay. But she's saying house can be left out of plan. So confused.

[tobee43]

are you using the same atty to convert to the chapter 7????

if you were not happy with the firm, i would interview a few more attys to see what their take is on it.

once you file the 7...you can surrender, not affirm, re affirm...(don't do that!)...retain...or in some cases "other".

i would examine all options and chose what fits your needs best. however, i would speak with another atty...just to get another opinion.

[despritfreya]

You have indicated that you entered into a forbearance agreement after the stay was lifted in the 13. I am going to assume that you lender, once the stay was lifted, realized that the pre bankruptcy arrears (if there were any) were no longer going to be paid through the Plan. (Maybe, since you filed in 2008, those arrears were already paid). I am also going to assume that during this forbearance period you will be working with your lender on a loan modification. If my assumptions are correct, converting to a 7 should not change your ability to work with the lender in an effort to modify the loan. Remember, for all intents and purposes, the bk no longer has any bearing on the issues between you and your lender.

Like others have said, do not sign an official Reaffirmation Agreement. Just continue down the path of attempting to modify. If it works, great. . . if it doesn't just walk away.

Des.

[bshaw96]

Des, your assumptions are correct. We do still owe arrears. And a mod is our desire. We were just concerned converting would reinstate the stay on the house which would void our agreement. Had also heard. One had to be current on mortgage to file 7 if they wanted to keep house. Thanks for your replies! Already made more sense than our lawyer.

[despritfreya]

We do still owe arrears. And a mod is our desire. We were just concerned converting would reinstate the stay on the house which would void our agreement. .

No, stay not reimposed in a conversion.

Had also heard. One had to be current on mortgage to file 7 if they wanted to keep house.

You do not have to be current but. . . if you don't work it out with the lender, the lender can foreclose.

Best of luck.

Des.

[neverstop]

Hi bshaw96,
A piece of advise I might offer after having a similar experience. Every State has an Attorney Registration Site usually as part of the state Supreme Court website. Check there under Attorney Sanctions or similar name. If the attorney has any sanctions, infractions or whatever that are of record, its a big red flag. Almost all attorneys go through their entire professional lives with no "rap sheet". As the clerk of that site will tell you, under no uncertain terms, even one disciplinary citation usually covers up a pattern of abuses that never raise to their attention.
Hope this helps