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Home > Ask The Get Out of Debt Experts > My Chapter 13 Bankruptcy Was Dismissed by Trustee But I Want to Keep My House. – Norma

My Chapter 13 Bankruptcy Was Dismissed by Trustee But I Want to Keep My House. – Norma

Posted by: Steve Rhode June 9, 2009 in Ask The Get Out of Debt Experts

Norma

“Dear Steve,

Due to medical condition requiring several surgeries within last three years, I had to file for Ch 13 bankruptcy but it was dismissed by trustee for not being able to meet the amount of payments the court required. My debts are two mortgages, medical bills, personal loans to family members, a judgement and student loans.

What can I do to keep my home from foreclosure and get out of debt in 5 years?

Norma”

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The Answer

 

Dear Norma,

I’m surprised that you didn’t ask for a Chapter 13 plan modification to adjust your monthly payment before letting the case get dismissed. Did you discuss this with your bankruptcy attorney and if you did, what did your bankruptcy attorney say to you about reducing your bankruptcy payment to a level you could sustain?

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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Superleo408

    is it possible to have modifications done on you chapter 13 plan if you just had one done a few months ago?

    • http://GetOutOfDebt.org Steve Rhode

      Yes. Talk to your bankruptcy attorney.

      • Superleo408

        Can I file chapter 13 a third time. my lawyer could not modify my plan due to they just modified my plan 2 months ago. she instructed me to call the trustee and use my imformal suspensions but the trustee may say no to this. so would i be able to file chapter 13 a 3rd time in the state of california?

  • Superleo408

    is it possible to have modifications done on you chapter 13 plan if you just had one done a few months ago?

  • Michelle

    Thank you Steve, your advice has been very helpful:)

  • Michelle

    I have an appointment with a group called NACA (Neighborhood Assistance Corporation of America). It is a save your home program, where they consult with the mortgage company on your behalf to reduce interest rate/monthly payment. Their track record seems pretty good, I just don’t want to pay too much more than I can handle. What do you think? Thanks for your opinions Steve:)

    • http://GetOutOfDebt.org Steve Rhode

      You could always ask your attorney if he could postpone your meeting tomorrow to give you time to consider how NACA can assist you but I’d be very hesitant about suggesting you dismiss your case without you discussing this with your attorney.

      My advice still stands, talk this over with your attorney. Please.

      Steve

  • Michelle

    I wanted to dismiss it because I talked with the mortgage company and they are will to work on a home modification plan with me. I’m also not sure I can keep up with trustee payments in addition to future mortgage payments I would have to make. Initially, I filed for chp 13 to stop a foreclosure…

    • http://GetOutOfDebt.org Steve Rhode

      Are they really going to offer you a permanent modified payment? If you look at the number of people that wind up with a permanent modification it is not encouraging.

      You need to discuss this with your bankruptcy attorney and make sure you understand the rights you would be abandoning based on the hope of a modification.

      Steve

  • Michelle

    I filed for chapter 13, I have a meeting scheduled with the trustee tomorrow. I am having second thoughts about going through with it and want to cancel. What are the consequences?

    • http://GetOutOfDebt.org Steve Rhode

      If you cancel you will lose all the protections it offers and your creditors will resume collections. It will also not be removed from your credit report or court records. Why would you want to dismiss it at this point?

      Steve

  • Wanda

    My chapter 13 has been discharged, because of failing to keep up with my payments. The trustee didnt review my modified payment plan that was presented to the courts and would not give me the chance to catch up the payments at all. My modified plan was not confirmed. I filed chapter 7 in 2003, can I convert my chapter 13 to chapter 7? Please let me know what my options are. Thanks

    • http://GetOutOfDebt.org Steve Rhode

      Wanda,

      You’ll need to speak with your bankruptcy attorney.

      Steve

      • Wanda

        I’m representing myself. If my chapter 7 was discharged in 2003, can I convert my chapter 13 to chapter 7?

  • James

    I was puzzled by you not having any insight to Normas question. Is there a solution to this because I to am in a similar situation. Is it possible to keep your house if you can afford the payments now?
    I had Ch. 13 payments and home payments and loss some income once before and now again has lost even more.

    I can make house payments and is current on them. But cannot afford house, taxes and bankruptcy all togethere a choice has to be made. Can I work something out with the mortgage company after my case has been dismissed. And by the way I only have my house late payments in my 13 case in the first place. and I have put more than enough in the plan to cover the past due if they are disbursed as I hope they should be.

    • http://GetOutOfDebt.org Steve Rhode

      James,

      With the information provided I had more questions than answers. If you read the comments, based on the information subsequently provided, it appeared that Norma could not afford the regular mortgage payment plus an additional amount to bring the mortgage current, while in her Chapter 13 bankruptcy.

      Norma complains that she felt ill-informed about the reality of the bankruptcy plan she entered into, thus my advice to return to her bankruptcy attorney for specific questions and clarifying answers.

      In your situation, there is no requirement, except through bankruptcy, that any lender work with you at all. If they do it is because they see an advantage in doing so. It is business, not logic. It sounds like you need to talk to your bankruptcy attorney for a plan modification to adjust your payment based on your current income.

      Steve

  • Norma

    I don’t want to file bankruptcy Chapter 7. I want a payment plan that will allow me to keep my home. That is why I filed Chapter 13. Due to my medical condition, I was unable to do this on my own; hence, hiring the attorney. I do not want to be homeless, that’s why I logged onto this site. Since it appears you are unable to provide solid advice, I will seek elsewhere. Oh well, nothing is Free!!!! Even debt management advice. Thanks for nothing!

  • Norma

    I did discuss it with the attorney but she laid out a plan that increased the payments from $575 a month to $975 a month plus the mortgage payments which went up to $1275 from $942. I only take home $965 every two weeks. I did complain to the attorney about this but she didn’t seem too interested in my circumstances. I feel I was jerked around. But what do I know. The process of bankruptcy was not explained in detail to me. My fault even though I asked questions the answers did not make sense to me. But when pressed I was assured by her staff, it would be taken care of; whatever that meant. Thanks!

    • http://GetOutOfDebt.org Steve Rhode

      I sounds like you might have been behind on the mortgage when you entered the Chapter 13 bankruptcy and the plan required you to make the regular mortgage payment plus some of the past due amount in order to keep the house. That is typical.

      It might just be that you simply can’t afford the house and need to let it go and then look at a Chapter 7 bankruptcy to discharge the resulting debt. Student loans also need to be paid at their contractual amount in bankruptcy as well.

      I’m sorry if you feel the office that you worked with didn’t explain things to your satisfaction. Never be afraid to ask for clarification so you understand any process when working with bankruptcy professionals. While they might get annoyed with the questions, it typically is only because they are busy and have answered the same question a thousand times. It’s perfectly okay to be persistent. And if you feel like they are rushed or having a bad day, ask to schedule another time to meet with them to discuss it further.

      Steve

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