Convert to Chapter 7?

[banked]

Hello all,

Wondering if I can get some questions answered on here since my lawyer doesn't seem to help. Short to the point answers which arent helping.

Anyways July will be 3 yrs into our chapter 13. Jan 2010 I lost my full time job and found a new one right away but at 1/2 the pay. My husband worked tons of overtime at his job so we squeezed by, well now as of last week overtime is gone and we will struggle more!! As of June 12th we will be 2mths behind on Mortgage and our bankruptcy payment was due May 30th which now will not be paid til June 28th (hopefully) because we have to make mortgage payment by June 15th to not have letters of late payments.

Anyways did ask lawyer about converting to Chapter 7? this was my answer - send in your paystubs for last 6 months we'll see what income says. I know as of right now we still make to much to make chapter 7 b/c of husbands overtime.

I dont know if we should convert or as for lower payments wondering if suggestions on here? Also thinking of trying to get loan modification but mortgage is with HSBC.....

Anyones thoughts greatly appreciated

What happens if you go to Chpter 7 after 3 yrs.... seems like a waste but no way we can do $1537 payment and $1756 mortgage
'

[justbroke]

If you cannot afford the mortgage payments, it will be problematic regardless of converting or staying in your Chapter 13. The first thing your attorney should do, is to obtain a forbearance on your plan payments (with the exception of your mortgage payment). I'm guessing that you are paying your mortgage outside the plan? If your disposable monthly income (DMI) is what you're paying in plan (that $1,537), then you really need to a.) get your attorney to ask for a suspension of non-secured (non-priority) debt payments ("DMI"), and b.) start working on your strategy.

Whenever you have income issues you should immediately go to your attorney to work out a plan. (You may have done this, but I say it for other Chapter 13 debtors that may read this in the future.) Some things can be fixed through a Modification of your Confirmed Plan, a forbearance, installments, and/or conversion.

The reason that you would go into forbearance is to determine whether the loss of income is going to be "semi" permanent (last more than just a few months). At that time, re-evaluation will help determine whether a Modification of the Confirmed Plan will help remedy the situation, or a conversion would be the better option.

I would be on top of a forbearance today (if it is possible based on priority and payments and arrears on secured debt).