Chapter 7 vs. 13?

[tkharvey]

OK, we are in our "pre-planning" stages of bk and have been since january!!! Right now we are waiting on our loan mod (hopefully) going through. All along we had planned on filing a 13 in order to save our house from foreclosure while making up the past due payments and lien stripping the second. (Even though we qualify for a 7 according to the means test). Anyway, if our loan mod goes through, we won't be facing foreclosure or making up past due payments. The only advantage to filing a 13 is to strip our second. But, would it be better to file a 7 instead if we qualify and hopefully settle the second? We currently owe 98K on second. I like the idea of not being bogged down to a five year plan in a 13, having to deal with trustee. What are your thoughts, suggestions? Thank you!!

Also, we have no other "assets" that we would like to keep, other than our home and two paid off cars that aren't worth much at all.

[JRScott]

It would depend really on the value of the home compared to the primary mortgage.

[Toby629]

We are doing a chapter 7 and are current on our 1st. We owe more on the 1st than what our property and home are worth, but still want to keep the home. We are 5 mos. behind on the 2nd. Our attorney explained both options, chapter 13 and a 7. We qualify to do a chapter 7, and our attorney advised not to worry about the arrears on the 2nd. We will offer a settlement on the 2nd after we are discharged of the chapter 7, our attorney said we could settle for as low as 10 cents on the dollar on our 2nd. We as well do not want this hanging over our heads for 3 to 5 yr. for a chapter 13. Luckily our 2nd balance is 33K so a settlement is doable.