Chapter 13 to ch 7 conversion old law question

[momof4]

We have decided that we are going to convert to chapter 7 in order to get out from under our mobile home. We are moving this summer and cannot take it with us and we owe much more than we could sell it for. The mortgage payment is being made through the plan, but it is listed as a continuing debt.

So we're going to file the papers soon to convert. Our atty is prety sure that if we filed right now, we would be able to stay in the house until June, when we're planning to move. He said that the mortgage company can't do anything until the bankruptcy is discharged anyway and then, it would probably be still months before they actually came and pulled our house away.

Is this true? I thought that after we filed, the stay would be lifted and they could come get it anytime, since it's a mobile home and has a title, and not at "real" house.

I am in NC.

[HHM]

It is mostly true...your attorney is correct that you will have many months before you will have to vacate the property if you decide to give it up. However, the attorney (or what you thought your attorney said) about the mortgage company having to wait until discharge to start foreclosure is not entirely accurate. If you are surrendering the property and you stop making the payments, the mortgage company can make a request to the court to lift the automatic stay before discharge. This motion would come after you file for the conversion. In any event, the mortgage company would still have to go through the entire foreclosure process.

[momof4]

Thanks.

So I should be safe to file anytime? We have 4 months until our new place will be ready.

[HHM]

Thanks.

So I should be safe to file anytime? We have 4 months until our new place will be ready.

Yes, you should be fine.