How to get out of Chapter 13?

[rx330]

My lawyer really sucks and is all about money. Since filing ch. 13, it's like I've become more in debt. I paid him $750 initially and in the plan I have to pay him another 2500 + trustee fees. I don't know if that's reasonable.

The whole reason I filed was to save my house in foreclosure but I'm giving up on that and moving on. I realized I needed to earn more money and did just that and found a new job and am moving to Chicago so if my house goes that's fine by me now.

SO the question is how do I get out of Ch 13? All I really have is one car loan which I'm totally fine paying , some GE Money collections account, and past dues on my mortgage ($12k).

My question is can I can 'cancel' the chapter 13 and get out? What are the consequences of doing that?

If I foreclose will the mortgage company still expect the back payments? It's WellsFargo.

Please help .. thank you!

[newbie2]

You could have your Chapter 13 plan dismissed. The best way to do it is to contact your lawyer and tell him you are surrendering your home in the plan, and that you will take on all of the unsecured credit accounts yourself. (You do realize that they will add on interest to the start of the plan and your balances will be much higher..?) Also, if your state is one that is a "deficiency" state in regards to your mortgage, Wells Fargo can sue you for the difference in what the home sells for and the balance of the note. Ask your attorney about that also before you make a decision to dismiss your case.

Regardless of whether you continue in your plan or not, you need to let your attorney know that you've A: Gotten another job B: Will be surrendering your home and C: That you're moving to another state.

You'll also still have a BK on your public record even if you dismiss it.

The amount that your attorney charged is well within the norm.

[despritfreya]

In addition to Newbie2's comments. . . other considerations. . .

1. If your vehicle was being paid through the Plan and you let your case get dismissed, unless you bring payment contractually current or work something out with the lender the vehicle will be repossessed once the lender finds it.

2. To avoid any future liability on the surrendered home (if your state is not a non-recourse jurisdiction) and the other collection accounts you may want to think about converting to a Chapter 7 instead of dismissing the 13. This, of course, assumes you qualify for a Chapter 7. You will still have the issue with the vehicle to deal with.

Des.

[justbroke]

No matter what, and everything written above is spot on, you need to worry about deficiencies and whether your auto loan will be "current" upon dismissal! As with most things in bankruptcy, you'll need to review your "financial" house and what it will look like after dismissal.

I think a conversion to Chapter 7 may be better in the long run as this will get rid of the deficiency on the house. However, the car issue -- with any arrears -- is an important thing you need to look at closely.