Trustee filing motion to dismiss...

[jetsfan2007]

After catching up on my mortgage that was in arrears since the ch 13 began, I had fallen 2 payments behind on my ch 13 plan. My attorney said he would discuss and negotiate with the trustee and make him aware of the situation. That was about a week ago. So today I get a letter from the Trustee with a motion to dismiss the BK due to missed payments! The court date is set for 30 days from today, and I will be calling my attorney tommorow.

My question is, if any of you have been in this situation, if you cant make up the payments, is there any way to salvage the BK? I have had a decrease in income since I filed, and filed primarily to save the house from foreclosure. My plan is a virtually 100 percent payout currently (98) on a 60month plan

[lrprn]

After catching up on my mortgage that was in arrears since the ch 13 began, I had fallen 2 payments behind on my ch 13 plan.

I'm confused - were you making your arrears payments yourself to the lender in addition to your regular Ch 13 plan payments? (Please tell me I'm having a senior moment here! )

My attorney said he would discuss and negotiate with the trustee and make him aware of the situation. That was about a week ago. So today I get a letter from the Trustee with a motion to dismiss the BK due to missed payments!

Was there a reason you waited to notify your lawyer you were struggling until you had already missed two payments? Most trustees will start the dismiss wheels rolling after one missed payment if he/she doesn't hear anything from your lawyer or yourself explaining why the payment was missed.

My question is, if any of you have been in this situation, if you cant make up the payments, is there any way to salvage the BK? I have had a decrease in income since I filed, and filed primarily to save the house from foreclosure. My plan is a virtually 100 percent payout currently (98) on a 60month plan

Here's the struggle - if you can't make your payments now, it isn't going to get better even if you salvage this plan. Talk to your lawyer about filing an amended plan that reflects your changed income.

You haven't shared much detail about your financial situation, so if I'm off base here, please correct me. However chances are if you are struggling this hard to stay on top of the house payment and your plan payments then it could be that the house is just too much for you to handle financially. Keep in mind that as hard as it is to consider, a house is just a thing and things can eventually be replaced. It's not worth your peace of mind and your family's to be under this much stress just to keep a house.

Keep us posted about what your lawyer says are your best options under these difficult circumstances, ok?

[jetsfan2007]

I'm confused - were you making your arrears payments yourself to the lender in addition to your regular Ch 13 plan payments? (Please tell me I'm having a senior moment here! )

Was there a reason you waited to notify your lawyer you were struggling until you had already missed two payments? Most trustees will start the dismiss wheels rolling after one missed payment if he/she doesn't hear anything from your lawyer or yourself explaining why the payment was missed.

Here's the struggle - if you can't make your payments now, it isn't going to get better even if you salvage this plan. Talk to your lawyer about filing an amended plan that reflects your changed income.

You haven't shared much detail about your financial situation, so if I'm off base here, please correct me. However chances are if you are struggling this hard to stay on top of the house payment and your plan payments then it could be that the house is just too much for you to handle financially. Keep in mind that as hard as it is to consider, a house is just a thing and things can eventually be replaced. It's not worth your peace of mind and your family's to be under this much stress just to keep a house.

Keep us posted about what your lawyer says are your best options under these difficult circumstances, ok?

thanks for the insight.
for the update here:

1. I did notify my attorney as soon as I started to fall behind, as my commissions for my job(auto sales) started to slow.

2. I will be talking to him about ammending my plan to reflect my current income state. I realize I shouldve notified him or the trustee the minute I saw this coming, but of course I didnt think the recession would hit our industry as hard as it has.

3. My house payment is not that high, in fact my current ch13 payment is about 400 a month higher. With that being said, if we were to let the house go and try to rent, our rent would be 200-300 higher than our current mortgage.

[rrockinggramma]

sorry I should have read closer. GL

[Flamingo]

As soon as anyone in Chapter 13 cannot make one single Plan payment, immediately contact your attorney. Plan modification, if necessary, can be done at that time if one has difficulty making them. The longer you wait, the harder it is to avoid dismissal which is what needs to be avoided at all costs. One very important thing I want to stress after going through a Chapter 13 is that you are viewed by future creditors as to how you conducted yourself during your Plan years - those making payments on time and not late with anything else fare the best. If you want to refinance during your Chapter 13, a mortgagor will not touch you if you are late with any payments or have not been making them on time.