Chapter 7 AFTER Chapter 13

[flower]

I filed Chapter 13 in February, 2007. Since that time, my home has lost about $3,000 to $4,000 in value. (It may have lost more). I am wondering if I should try to file a Chapter 7 if I meet the equity test and can keep my home?

Should I try to do this with my Chapter 13 attorney, to whom I am still paying? (My debt to him is included in the Chapter 13 payment schedule.)

Also, what is the equity formula for a Chapter 7?. I live in Indiana, and don't want to lose my house. I know that I get an $15,000 exemption. ( My significant other and myself would each get to take the $15,00 exemption if we both file Chapter 7. We both filed Chapter 13).

I assume that this situation is happening to many Chapter 13 people.

I am concerned that the economy will get worse, and don't want the Chapter 13 debt hanging over my head.

Thanks.

[Flamingo]

Well, first of all, believe it or not, some houses have increased in value depending on where you live in the country and in order to determine the actual value of your hiouse, you would have to pay to have an appraisal done (anywhere from $200 to $400) and also to investigate having your Chapter 13 changed to a Chapter 7, which would be additional attorneys fees. Just your home declining in value $3,000 to $4,000 I don't think is enough to consider converting to a Chapter 7....there are other financial factors involved...did your income also decrease? I suggest speaking to your Chapter 13 attorney to determine whatever options might be available to you. Best of luck!

[flower]

Thanks Flamingo

My house decreasing in value was determined by the latest assessment done on homes in my area. When I filed for Chapter 13, I just barely missed qualifying for a Chapter 7. So I'm thinking that this might make a difference.

I could have a realtor come on a "quick sale" to see if the price they quote me is even smaller.

So there would be a fee simply to discuss this with the attorney or paralegal? Hmmmm.

Experts keep saying that values in homes could drop substantially more in the next few months, so it may be worth a shot.

I have four more years to pay, and quite frankly the economy is scarey.

Thanks