Please..input needed!

[Ortgeist]

I'm in a ch 13 and been successful with payments for a year and a half. My mortgage is outside the plan and this is the first 30 day late I've had. I've been reading about ch 7 lately and with my decision to divorce my husband I think it makes sense to have a fresh start.

We saw the BK attorney yesterday. I thought he was going to tell me my options and give me scenarios regarding the ch 13 or conversion to 7. I would like to keep the house, but cannot afford a 9% adjustable 21 year loan on my income alone. He asked if I was current. I said it's my first 30 day late. He just sighed and said I have to tough it out since I wouldn't qualify for the 6.5% FHA 30 year being 30 days late. He then proceeded to lecture me on how tough it is to survive after divorce and that people can forgive and work things out. Obviously this guy doesn't realize that it took 3 years for me to make this decision. I don't recall seeing any MSW or Psch designation after his name so ............

I could afford the payments if the loan was 30 years at a lower interest rate. I just feel like I blew my option for a refi or a workout. However, I don't know for sure since I haven't called Wells Fargo. UGH!

I have a '95 Toyota Corolla that is included in the ch 13 at a 8% ($233 month payment) on a $9,900 balance. It has side door body damage so I know it's not worth any more than the balance now. I would like to keep the car but if I can't would like to know if I could secure financing after a Ch 7 and keep my payment in the $200/mo area.

Can anyone add any input or scenarios into my situation. I just feel like my lawyer just wants to keep me in the ch 13 so he gets paid more. I was afraid that might happen. Should've known he wouldn't work to have my best interests at heart. In my honest opinion, I think he crossed a line and was unprofessional.

I value anyones opinion or input even if it's not something I want to necessarily hear. Facts are facts.

Thanks in advance,
Carrie

[Ortgeist]

BTW, I owe 121K on the house and it's very old (100 years), needs a new roof, & other repairs. It appraised 3 years ago at 128 - 140 K. Houses on my block have been taken off of the market since no one seems to be buying. Some have been on the market for over a year now. I'm thinking any sensible person would not pay 128K for it, but I'm no appraiser. Does the trustee take things like this into consideration?

Thanks for any input!

[lrprn]

Let's see if I understand what you've shared so far....

You want to keep a house but you can't afford the current mortgage so are hoping you can refinance the mortgage. You haven't shared what your financial picture is going to be on your own. What kind of payment could you afford?

Unfortunately since you are now behind a month on the mortgage, it's likely your mortgage company will be very reluctant (or may even outright refuse) to refinance. And no other lender is likely to assume the loan since you are in arrears currently.

You are unhappy with your lawyer because he advised you to think carefully about divorce before proceeding with it. You are right that a bk lawyer is not a relationship expert. However, he may have been trying to help you see that in your state, divorce during an active bankruptcy is problematic. Or perhaps his own religious beliefs led him to express an opinion. It's not a given that he's trying to line his own pockets, although that is possible. At any rate, be careful to not jump to the conclusion that what he did was meant to be offensive or benefit him personally.

There are far fewer bad bk lawyer apples than would seem to be the case reading the forums. That's because the forums skew the appearance to the negative side because people happy with their lawyers have no reason to come here to vent

You want to keep a '95 car with damage to the body that you still owe more than $9K on. A couple of questions first. When did you purchase the car? Was it more than 910 days ago?