IN AUTO INDUSTRY SINCE 99. DEALERSHIPS MADE CUTS WAS IN MGT AND HAD TO GO BACK TO SALES IN 06 HAVE HOUSE AND RENTAL AT ONE POINT WAS PAYING TO MORTGAGES FOR AT LEAST A YEAR SAVINGS WENT TO ZERO. FILED BK IN O7 CURRENTLY MAKING PAYMENT. I AM CURRENT IN BK PAYMENTS STRUGGLING IN PRIMARY MORT. MAYBE 1 PAYMENT BEHIND SECOND MORT AT LEAST 10 MONTHS BEHIND RENTAL PROP. AT LEAST 14 MONTHS BEHIND. PRIM. MORT. PAYMENT GOING UP DO TO 14000 ESCROW FIN FOR 12 MONTHS CAN’T AFFORD.
MY QUESTION IS THE ONLY WAY I SEE GETTING OUT OF THIS BESIDES HITTING THE LOTTERY IS TRYING TO CONVERT TO CH. 7 AND HOPE TO KEEP PRIMARY HOME IF NOT LOOKS LIKE HAVE TO JUST START ALL OVER I AM MARRIED WITH 3 KIDS. ANYTHING YOU COULD SUGGEST WOULD BE HELPFUL. WHY DOES IT THAT BK ATTORNEYS PUSH CH. 13 OVER CH.7 IS IT THAT CH.13 IS EASIER TO FILE FOR THEM? I ALSO NOTICED SOME ANSWERS WHERE YOU ADVISE PEOPLE NOT TO CONVERT BUT IN MY DESPARATE SITIUATION I DO NOT SEE ANY OTHER WAY.
YOUR ASSITANCE WOULD BE GREATLY APPREICATED
From what you’ve shared it does look like converting the Chapter 13 to a Chapter 7 would be a reasonable thing to do. At the same time you’ll probably have to think about handing back the rental property in order to get your obligations to fit within your income.
The reason a bankruptcy attorney would suggest a 13 over a 7 would be if your income exceeded the qualification for a Chapter 7 limits or if you had property you were trying to protect from foreclosure prior to bankruptcy. A Chapter 13 is more complicated to file.
If you fall behind on mortgage payments under a Chapter 13 the lender can have the property removed from bankruptcy protection and foreclose on it anyway.
Call you previous bankruptcy attorney or you can click here to find a local bankruptcy attorney and if you’d like a second opinion about your situation or a personal consultation by another debt coach, please feel free to contact
Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.