New here & my chapter 13 journey

[Clambert1273]

How'd you get around the equity and expanded homestead issues? Is this a dismiss and file 7 or conversion? Like I said before, I'd be scared to do a conversion without declaring the expanded homestead in the 13 with no opposition before converting.

it's neither, we had forgotten that the partial claim is a 2nd lien so when calculating the equity it was only using the mtg balance, adding the 2nd lien put us way under the homestead threshold. The 7 got filed today

[flashoflight]

How'd you get around the equity and expanded homestead issues? Is this a dismiss and file 7 or conversion? Like I said before, I'd be scared to do a conversion without declaring the expanded homestead in the 13 with no opposition before converting.

[Clambert1273]

Very nice news.

it was, I am so relieved

[justbroke]

Very nice news.

[Clambert1273]

Ok well as of today equity problem solved & back to a 7 filing today woohoo!

[Clambert1273]

Yup - gotta love computer programs - smarter than us attorneys.

Des.

Im happy lol my atty was honest & was like we could try to fight for the ch 7 but thought it would cost me more in the grand scheme & mentally drain me

[despritfreya]

his paralegal caught it when the new checkboxes showed up as she was prepping to file it yesterday.

Yup - gotta love computer programs - smarter than us attorneys.

Des.

[Clambert1273]

Very glad your attorney caught this. Did you already file? I would imagine that a slew of cases are being filed this week. I have to wonder how many attorneys have not and/or will not catch this issue. I do note that Best Case bankruptcy program does have a pop-up warning relating to the amount of the exemption when inputting information so maybe attorneys will catch it.

Des.

nope did not yet, his paralegal caught it when the new checkboxes showed up as she was prepping to file it yesterday.

[despritfreya]

I wish but nope lol this was our first home closed 2/4/20 so having like 187K in equity in less than 2 years is not normal lol thanks covid 🙄 so even in the 13 I have to pay like 14K for the equity

Very glad your attorney caught this. Did you already file? I would imagine that a slew of cases are being filed this week. I have to wonder how many attorneys have not and/or will not catch this issue. I do note that Best Case bankruptcy program does have a pop-up warning relating to the amount of the exemption when inputting information so maybe attorneys will catch it.

Des.

[Clambert1273]

So, you haven't owned the home for the requisite time and are limited by bankruptcy law as to the amount you can claim for a homestead. Without looking at case law, the Bankruptcy Code does have an exception to the rule if the equity was, in essence, transferred from a prior home located in your state. Is that possible? Did you sell one home in Arizona to purchase your current home? (See 11 USC (p)(2)(B)).

Des

I wish but nope lol this was our first home closed 2/4/20 so having like 187K in equity in less than 2 years is not normal lol thanks covid 🙄 so even in the 13 I have to pay like 14K for the equity

[despritfreya]

that was one of his options was dismissing & refiling later once we hit the mark of the 1215 day requirement.

So, you haven't owned the home for the requisite time and are limited by bankruptcy law as to the amount you can claim for a homestead. Without looking at case law, the Bankruptcy Code does have an exception to the rule if the equity was, in essence, transferred from a prior home located in your state. Is that possible? Did you sell one home in Arizona to purchase your current home? (See 11 USC 522 (p)(2)(B)).

Des

[Clambert1273]

Why can't you dismiss the 13 and start over with a brand new 7? That's a question for your lawyer. I probably wouldn't risk a conversion of 13 to 7 in case the homestead exemption isn't allowed to be updated. Once you are in a 7, you can't get out without the trustee going along with it. California had a big homestead exemption update and I believe the legacy 13 filers are not entitled to it.

that was one of his options was dismissing & refiling later once we hit the mark of the 1215 day requirement. Recovering from One bk on credit is bad enough but having 2 listed and one dismissed is not something I care to do right now that thought may change in the future but by the time we will hit the requirement will be around June 2023

[flashoflight]

Well, it's Jan 4th and so much has happened (clearly since I am back on my original thread) lol. Reader's digest version is house is now good and current first repayment starts 2/1. We were set for ch7 filing which was supposed to be yesterday but as they went in to update the homestead exemption after the new law went in, we had a problem and now our equity wasn't fully covered. My attorney presented a couple options and his opinion. I opted for just going with the 13 again instead of a huge battle for a 7.

so here I am again 💔💔 it's ok really I am at peace with it. I have a phone meeting with my attorney today or tomorrow to do some number crunching

Why can't you dismiss the 13 and start over with a brand new 7? That's a question for your lawyer. I probably wouldn't risk a conversion of 13 to 7 in case the homestead exemption isn't allowed to be updated. Once you are in a 7, you can't get out without the trustee going along with it. California had a big homestead exemption update and I believe the legacy 13 filers are not entitled to it.

[Clambert1273]

Well, it's Jan 4th and so much has happened (clearly since I am back on my original thread) lol. Reader's digest version is house is now good and current first repayment starts 2/1. We were set for ch7 filing which was supposed to be yesterday but as they went in to update the homestead exemption after the new law went in, we had a problem and now our equity wasn't fully covered. My attorney presented a couple options and his opinion. I opted for just going with the 13 again instead of a huge battle for a 7.

so here I am again 💔💔 it's ok really I am at peace with it. I have a phone meeting with my attorney today or tomorrow to do some number crunching

[womanonfire]

I don't know about VA loans, are they covered by RESPA? If so, then I would send a Qualified Written Request ("QWR") and ask them about loss mitigation options. You want to be sure you send it to the address designated for QWRs.

They have to by law provide you with all loss mitigation offers. This is one area of law I am very familiar with.

I filed Chapter 13 last Friday 12/3.