chap 13 again

[worried]

I finished a chap 13 in Oct but during that time in the plan I fell behind on my mortgage. The end of Oct they got a judgement for foreclosure and I have until april to live here. Now if I have a hard time getting something to rent or decide to keep the house can i file another chap 13 to stop foreclosure. I thought I read you can't file for another 2 years but my attorney says I can. Anybody know for sure? Thanks

[lrprn]

I finished a chap 13 in Oct but during that time in the plan I fell behind on my mortgage. The end of Oct they got a judgement for foreclosure and I have until april to live here. Now if I have a hard time getting something to rent or decide to keep the house can i file another chap 13 to stop foreclosure. I thought I read you can't file for another 2 years but my attorney says I can. Anybody know for sure? Thanks

If your Ch 13 case was officially discharged by the trustee and you've received that paperwork, then the law states you can't file another Ch 13 case for two years.

You said your case was "finished". Is your trustee still in the audit phase finishing your case so you aren't officially discharged yet?

And I have a hard question to ask you. You've barely finished with Ch 13 and you are having trouble making your mortgage payments. That isn't a good sign. Did something change recently that is making it difficult to make your house payments now? Or are you trying to hang on to a house that is really more than you can afford on what you make?

[worried]

chap 13 again

It says my case is closed. I'm not sure if I want to go through the plan again or just rent for now. I'm afraid I won't get something to rent because of my credit. Anyways I spoke with my attorney that I had and he says he can get me another chap 13 and says he's good enough to do so. He is good but I'm not sure how he would pull it off. Anyways I have family member that would be helping with the bills from now on.

[lrprn]

It says my case is closed.

Then you can't file another Ch 13 for two years.

[worried]

My lawyer says he can get me another chap 13. Maybe he knows how or maybe he knows the trustee well.

[HHM]

You can "file" a chapter 13 at any time, you just can't get a "discharge of debts" from a chapter 13 that is filed within 2 years of a prior chapter 13 discharge (BK Code 1328(f)(2)).

I am a little hazy on the practical consequences, but what this means is that you have to pay into the plan until all debts "included" in the plan are paid...which means all unsecured debt, if any, will get 100% (thus, there is no debt to discharge). Once the plan is paid, the case simply closes, but you don't get a discharge.

[chpxiii]

HHM, maybe, since a chapter 13 is somewhat of a reorganization of one's debt and finances, this would the be the lawyer's way of saving worried's home? Perhaps it's a way to have worried be able to pay mortgage that is in arrears to be able to catch up?

I don't know. I'm just thinking outloud.

But I'm with you, HHM, on that hard question. If worried is behind on their mortgage and got behind while already being in a chapter 13, the OP may want to have a hard look and evaluation on whether the mortgage is finacially killing them.

[worried]

I'm not sure what you mean by this (I am a little hazy on the practical consequences)

If I am denied to rent a home I will need the chap 13. Now the only debt in the plan would be secured mortgage arrears. I have tried to sell my home for 10 months now and it isn't selling and now in foreclosure. If I choose the chap 13 route can I file right before the sheriffs sale. Also would the foreclosure be included in the bankruptcy as one on my credit report. Thanks much

[chpxiii]

worried,

You should not be denied the ability to rent. You'll be able to find someplace, I'm sure. You may not be able to rent a home, but maybe an apartment. Now, I realize I do not know your situation. You may have circumstances where an apartment is not feasible. I also don't know where you live so I can't say anything about tenants' rights.

You'll want to start looking into rentals and renting now. I hope you are. Look up "tenants' rights" or "renter's rights" in your state to see what the laws say regarding people who have filed bankruptcy and getting a rental agreement. Landlords may deny renting to you, but others may simply require a larger deposit from you and will still lease to you.

I have been in a chapter 13 for the last 4 years and have been able to move and get rent and new apartments. But that is here in Texas, even though the application has asked if I have ever filed bankruptcy. I've answered truthfully and have not yet been denied a lease.

[worried]

chpxiii,
Things are a little better now and since I have been out looking at places to rent I see the rentals are higher than my mortgage payments. Only thing is I wouldn't have to fix anything with a rental. I'm really going to have to think about the chap 13 thing because for one utilities are very high in my house in winter it's 400.00 a month and gas prices are so that we pay around 400 a month on our cars to get to work. So I was going to try to move closer to work but it turns out higher for rent to get closer. And also I may have to stay in the chap 13 for 3 years before I can buy another closer.

[HHM]

Perhaps it's a way to have worried be able to pay mortgage that is in arrears to be able to catch up?

That is what I am thinking too. I simply posted to clarify the 2 year rule. I would assume the lawyer is suggesting a chapter 13 to simply pay the mortgage arrears (and pay the attorney fees for ANOTHER chapter 13 ) and the case would simply close once the claims are paid.

What I mean by hazy on the consequences...is I don't know all the consequences to a non-discharged BK. For example, from a technical standpoint, the discharge is what terminates the BK estate (closing does not). In a chapter 7, a lack of discharge is not too big a deal because the BK estate is created on the day of filing and "held" at that date. But a chapter 13 is an "ongoing" BK estate...so if the case never discharges???? (I suppose it really doesn't matter once all claims are paid, but it is an odd implication).

As for the credit report, the foreclosure is already there. You have bigger problems then worrying about your credit report, as Chpxiii pointed out, you need to take a hard look at whether you can really afford your mortgage.

[worried]

Yes I need to rent a house. No apartment

[worried]

I wanted to rent this one house and they seemed really nice but I didn't mention any chap 13 or pending foreclosure but when they asked to fill out the application and put down landlord references I chickened out and didn't call them back.

And my kids and I are afraid to rent because we are afraid if we rent we will not be able to buy another house.

[HHM]

if we rent we will not be able to buy another house.

Why would you think that????

Almost everyone generally rents before they buy.

[worried]

No that's not what I meant. I meant that since I fell behind on my mortgage payments they probably will not rent to me and I also haven't had a landlord for 8 years. But maybe if I do the chap 13 and pay the mortgage for a year and no late payments I could refinance or buy another house.
Sorry I know I'm wishy washy on this but I really wouldn't mind renting if it was a house and moving closer to work to save all that gas. And also for my heating oil I just ordered fuel for my house about half hour ago and it is 3.07 a gallon and we have to buy 100 gallons minimum. We use that up in about 4 to 6 weeks. Utilities and gas for cars are killing me.