chapter 13 relief from automatic stay

[dylancarly]

I am 4 years into my 5 year chapter 13 plan. Due to losing one of my jobs I have fallen 1 to 2 months behind on my mortgage payments and citimortgage has filed a releif from the automatic stay and I have a hearing in November. Is it too late have I lost my house or will they work something out. I also have a home equity loan and a home equity line of credit. What would happen to these if there was not enough proceeds to pay these off. I have 2 young kids in school and I want to stay in my house. I am freaking out. My parents said they would help me financially to get me through the next year and a half. Is it too late. My attorney asked me how I wanted to proceed. Also if they were granted relief can I keep my chapter 13 bankruptcy going? Help.

[lrprn]

I am 4 years into my 5 year chapter 13 plan. Due to losing one of my jobs I have fallen 1 to 2 months behind on my mortgage payments and citimortgage has filed a releif from the automatic stay and I have a hearing in November.

Did you let your lawyer know right away that you lost one of your jobs? Did your trustee allow you to miss a few Ch 13 payments while you searched for another job?

Is it too late have I lost my house or will they work something out.

Since Citi has already spent the money to file to lift the stay, then they are unlikely to want to bargain now. You can't do a renegotiation on the mortgage without your trustee's prior permission anyway.

I also have a home equity loan and a home equity line of credit. What would happen to these if there was not enough proceeds to pay these off.

It depends on if you signed a reaffirmation agreement for the mortgage and HEL - did you? (Please say no.)

Home equity lines of credit are unsecured, so this should be wiped out unless there was a clause in your agreement that connected it to your house loan. Do you have the original agreement? Does it have such a clause?

My parents said they would help me financially to get me through the next year and a half. Is it too late. My attorney asked me how I wanted to proceed.

Well, it would have been much better to tackle this situation before Citi filed to ask for your stay to be lifted.

Ask your lawyer if he/she is willing to work with Citi to ask if you make up your mortgage arrears, will they rescind their request to lift your stay. You won't know unless you try.

Also if they were granted relief can I keep my chapter 13 bankruptcy going? Help.

If Citi is granted their relief, you will eventually lose your house to foreclosure. Stay in the house as long as possible payment-free saving up and looking for a good location to rent that's in the kids' school district. If you can find one, as long as your rent is close to what your mortgage was, then chances are your plan goes on without changes. However, if your rent is significantly lower than your mortgage, then your lawyer *might* have to amend your plan since you would have more disposable income.

Talk with your lawyer at length to go through all your options. REmember that you need to think unemotionally and for the long-term benefit of your family. A house is just a thing. Things can be replaced. What can't be replaced is your family's peace of mind and ability to live a less stressful life that isn't a slave to a house.

[rrockinggramma]

make up the payments as quickly as you can and then let your attorney know that the payments are caught up (once citi has cleared the check) (thank God for parents, heh)

Then go to the hearing. Generally if the payments are caught up, the trustee could still give them relief of stay so they don't have to come back to court to ask again should you fall behind again (I think the attorney that posts here called it a "drop dead order" where they can proceed.) However, you need to be aware that filing this motion by Citi will add to your mortgage as it cost them money and I am sure they will pass it on to you. So you might want to contact them and find out exactly the amount plus fees that you owe so there is no confusion.

Hang in there. You are almost done.