I don't understand

[nursebette]

It's been almost 2 years since I retained my Attorney and I still can't decide whether to file a chap 7 or 13 bk. I qualify for either one....below CA median income and living on my pension and SS. Pretty much judgment-proof...no pending judgments or lawsuits,and no collectors calling. Haven't paid on my 2nd mortg for over a year as it's completely underwater.

I'm thinking I could file a 7 and then try to settle with Greentree (2nd mortg holder), for maybe 5%-10% of balance owed (Approx 130,000) or just go ahead and file chap 13 with a lien strip.

I would prefer to file the chap 7 just because it's quick and easy (also cheaper), but it would really be a gamble if home prices increase ( I'm about 30,000 under) then they could start foreclosure proceedings and I would really like to keep my home.
Now here's what I don't understand........If I file a chap 7 now and Greentree won't settle and home prices start to recover in the next 2 or 3 years could I file a chap 13 with a lien-strip and stop a possible future foreclosure?

I understand there is a time frame involved between filing a 7 and a 13 (4 years)? If you file within that time frame your debts wouldn't be discharged. What exactly does that mean? What would be the point of filing the 13?

Any help resolving this dilemma would be so appreciated.

[AngelinaCatHub]

I'm not understanding as you seem to know much. However you can file a 13 after a 7. It is called a C20. Not a valid Chapter but the combo of a 7 and immediate 13. This works for evening out non dischargeable debts in 7 into a payment plan. If you are Judgment (collection) proof, you are mainly worried about your house. So, ASK. Tell them you are under water and will C7 against them and work a deal out for a lower issue. If they won't work with you, then work against them. Best I can do without knowing what you already know. Merry Christmas. 'Hub