We filed Chapter 13 in Nov. 2008. We started making payments of $540.00 in Feb. 2009. The attorney we used has closed his office and the trustee we had retired. March 4, 2011, we received a letter saying our payment was increasing $304.00 montly for the final 33 months of the plan. We can’t pay the increase. The trustee told me to contact our attorney. We contacted the attorney and was gave us another attorney’s number. I contacted him and he told me that we would have to pay it or opt out of the plan and he couldn’t help me. Can they do this and what do we need to do? Can we revert over to a Chapter 7? All of our debt was unsecured but our home. Our home appraised for $135,000 several years ago and we owe $90,000. We can’t get a loan for the equity and pay off these debts because of the bankruptcy or we would have already done this. We need help.
Do we have any legal means to help us with the situation above and be able to keep our home? Is Chapter 7 an option without losing our home?
Wow. That certainly was an unfortunate chain of events.
The most important question is if you are current on your mortgage payments without any past due payments. What state do you live in?
Have you had a change in income that would justify a payment increase?
I’d like for you to find another local bankruptcy attorney and get a second opinion on the increase. Just because one said it was one way does not mean it necessarily is.
Please post your responses and follow-up messages to me on this in the comments section below.