Confused?

[needarest]

We just filled out the paperwork for a chapter 13. According to our income we could have went with a chapter 7, however the attorney talked us into the 13. He said not many people file a 7 anymore. He also said that the trustee that may be assigned to us is a real pain and he would not want her on his case if he we were us and trying to file a 7.

He said he was 99.9 percent sure that our payments would be no more then $120 a month. Which is not that bad.

One concern I have is with our home. We have an adjustable mortgage right now. We would like to try and keep it, however what happens say a year or two down the road and we can't keep it? Are we still able to walk away from it by adding it to our bankruptcy. I know with a 7 you can reaffirm it or if you don't, usually as long as you make payments on time you don't have to worry about them trying to take the house. How does that all work with a 13?

[lrprn]

One concern I have is with our home. We have an adjustable mortgage right now. We would like to try and keep it, however what happens say a year or two down the road and we can't keep it? Are we still able to walk away from it by adding it to our bankruptcy.

If your mortgage adjusts up in a year or two and with such a slim margin of disposable income, you may not be able to file an amended Ch 13 plan because you won't have enough income to support it.

Were you in arrears on your house or car payments and had to file Ch 13 in order to keep them?

Did you speak with any other bankruptcy lawyers before hiring this one? Some less ethical bk lawyers push potential Ch 7 filers into Ch 13 because, frankly, the lawyer makes more money from a Ch 13. Did other bk lawyers in your area make the same recommendation that you should file a 13 rather than a 7?

I know with a 7 you can reaffirm it or if you don't, usually as long as you make payments on time you don't have to worry about them trying to take the house. How does that all work with a 13? [/B]

Ch 13 works the exact same way. Knowing you may have to walk away from the house in the future, DO NOT sign a reaffirmation agreement. But also you absolutely MUST have your house payments paid on time BEFORE the due date.

Don't depend on the 15-day grace period, because some mortgage lenders will ask to lift your automatic stay if you pay after the due date but within the grace period. Have to be careful under the current law....lots of gray areas that lenders can take advantage of if you aren't very careful.

[SinkingFast]

By far, the most cases filed are still Ch 7's. The New Law didn't change the %'ages a whole lot as far as 7's vs 13's go.

This is the oldest trick in the BK attnys bag. Get the client to go for a Ch 13. Knowing full well they can't afford the payments. Collect a big fee up front. Then in a couple of years, the client comes back, begging to Convert. Kah-Ching! Another fee.

You filled out the paperwork, but did you sign the petition yet??

Even if you signed,........ If the attny has not submitted it, you can still stop the filing.

[needarest]

We were up to date on all payments on the house and car.

I think $120 dollars would be fair to pay. However if they are to ask me for anymore then that I would probably ask to change it to a 7. Can I do that?

Also the other attorney I spoke to also said I could go either with a 7 or a 13. What happens if they decide you do not have enough income to file a 13? Does that ever happen?

[coma]

If you qualify for the CH7, then you can convert to a 7 if your circumstances change.

Can you give us some more information regarding the state you are in?

[needarest]

I'm in Florida.

Also does anyone have a link on exemptions for household items in Florida?

[needarest]

***Bump****