I've heard of a few cases, but cannot find much info. I am planning to file a chapter 7 June 1st. I would like to keep my house but am behind 3 payments. I have been talking with the mortgage companies, but neither has come back with a decent offer. I plan to roll it into the 7 to be safe and keep talking. Maybe they will decide to deal at that point? I owe $406K to MorEquity on the 1st, $120K to Ditech on the 2nd and the house is worth $360-$370K. I've heard of a few cases where you can convert the things not covered under a 7 into a 13 shortly after being discharged from your 7. Has anyone heard this? I will have some back taxes and would like to roll that plus the missed payments from the 1st and strip the 2nd under a 13. Hopefully I'm making some sense? Probably no chance in h*ll, but just looking to get creative!
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Why not simply file a 13?
Besides......is you are behind on your house payments at the time of filing, you can't "roll" anything in with Chap 7. House payments are secured debt, and if you want to keep your home, you have to be caught up when you file.
If you file a 13, you can roll your back taxes and late mortgage payments into the plan.
K
PS: mortgage company is not going to talk with you once you file. The automatic stay prevents them from doing so.You can't have your cake and eat it too. But you can dip your finger in the bowl and lick the icing
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I filing a chapter 7 due to $120K in credit card debt! Without that, I would do a 13 for sure!Comment
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Are you aware that there ARE some Chapter 13 plans in which unsecured creditors get little or nothing??? What you pay back depends on your DMI, not how much unsecured debt you have....
Have you had a couple of consults with some lawyers? I think you should look into that. Most lawyers will give you free consults. Make some appointments
You can't have your cake and eat it too. But you can dip your finger in the bowl and lick the icingComment
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We have spoken to a few attorneys and are planning to file June 1st. I am self employed and my income goes up and down a lot each month. Mostly down the last 15 months which is why I am where I am! My attorney told me that due to my income fluctuations, they would probably want to reevaluate my monthly payment under chapter 13 every 90 days. At my current income level, the unsecured creditors would get zero. If/when the economy rebounds, they could get quite a bit! If I knew I could avoid potentially paying off a bunch off credit cards under a 13, I would go that way in a second!Comment
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Let the house go. You're upside down by $150K and your income is dropping. Noway to tell when, your income will increase or, when home values will increase. Cut your losses and start over. There'll be other homes in the future.Comment
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the chapter '20' dissapeared with the bankruptcy reform in 2005. You could file a chapter 13 after your 7 but your payback would have to be 100%.Originally posted by FS09 View PostComment
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As biotech just wrote, you won't get a discharge in a Chapter 13 after a Chapter 7 (the notorious Chapter 20). This is because you can't receive a discharge for at least 4 years after a Chapter 7 under the new law.Originally posted by biotechsolution View Post
The only reason people do the "Chapter 20" these days, is to save a home from foreclosure, while discharging debt. Or, to pay IRS debt after a Chapter 7 (since taxes are not dischargeable).
With your home that far under... there is NO reason to file a Chapter 13 after a Chapter 7. You should get out of that property while the getting is good.Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
Status: (Auto) Discharged and Closed! 5/10
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Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.Comment
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