Question about foreclosure

[jake24175]

We've received the court papers (foreclosure) and decided to file chapter 13, after consulting with an attorney she advised us to file chapter 20.

How will this save our home? I know CH7 doesn't save the home and wouldn't they foreclose prior to discharge or would they have to wait for the 7 to discharge and then we file the 13?

Anyone here file a 20? I'm definitely nervous as all get out.

Thanks again!!!!

[JustChillin]

A Chapter 7 would wipe out all the unsecured debt you have and also would temporarily stall the foreclosure process. Once you have a discharge, you would convert your Chapter 7 to a Chapter 13 and pay your mortgage arrearages through the chapter 13 plan.

[HHM]

Strictly speaking, if you receive a discharge in your chapter 7, you don't convert, because there is no case to convert, you simply file a chapter 13 upon receiving the chapter 7 discharge.

Usually so called "chapter 20's" are used to deal with serious tax debt. Since your already in foreclosure, yeah, the mortgage company need only file a motion to lift the automatic stay during your chapter 7, and that motion would probably be granted, and they can pick up the foreclosure where they left off. Its really a matter of timing, if the mortgage company is early in the foreclosure, you might be able to pull it off, (i.e. complete your seven before they can legally have the auction date). However, the other problem you face is that the new law will take effect before your chapter 7 is complete, so your chatper 13 would be under the new law. (I don't know if that changes anything for you specifically, but it will probably make your chapter 13 more costly and difficult).

Finally, chapter 20's are hard to do, because if you would qualify for a 13 after the completion of a 7 (which takes about 4 months), its hard to argue that you don't qualify for a 13 when you file your 7, and therefore would be pushed into a 13 from the get go.

Anyway, your lawyer will know more about it than anyone here.

[jake24175]

First of all, I appreciate all the advice...it truly helps.

My attorney said that the new changes to the 13 wouldn't affect me. She also said that typically the foreclosure process in Ohio is about 150 days and she believes (and I believe her) that if we file shortly (this friday, two weeks before we're required to respond to the court about the foreclosure) we'll make it in plenty of time.

Any thoughts? Input?