in chap13 and behind on mortgage payments

[moving2011]

Hello everyone. I am so glad i found this website. My story is similar to many of yours. I filed ch 13 in aug 2011 in alabama. I wanted 2 keep my house so i didnt include it in the plan. I now wish i had surrended it then because now i am 3 months behind in my payments. I have been in this house for 18 years and i thought this is where i would be for a life time. no so anymore I want 2 sell the house, modify my plan so that i can surrender the house,convert 2 chapter 7 or just walk away. I know im in for some trouble if i do that. The house next to me is termite infested and may have 2 be demolished and on top of that my dog bit my niece and now im probably responsible for medical bills that i have no money to pay for. i have called my attorney and he has not gotten back in touch with me. Also my income will decrease about 450.00 in the next 3month because my kid wants 2 go stay with her father. that will take away from my desposeable (sp) income. I wont have anything 2 live on. What shall i do?

[despritfreya]

Welcome to the forum. I am glad to read you have an attny. He will guide you through this.

If the house was “not included” (actually it was but you may have been current when you filed bk), why did you file a Chapter 13? Was it because you did not qualify for a 7 (too much income) or were you trying to protect some asset or pay something that you could not get rid of in the 7? If the reason for the 13 is now gone and you otherwise qualify for a 7, you might consider converting. You can add all of the new debt (medical bills) to the converted case. If, on the other hand, there was some reason for the 13 that still exists, you would amend your Plan to show the surrender of the home. Either way, dealing the with surrender of the home is relatively easy and, with the reduction in income you might be able to reduce the Plan payment. However, a reduction in the payment will depend upon why you filed a 13. You cannot reduce funding below what is necessary to pay for those items you might be required to pay such as a vehicle, taxes etc. Your attorney is best suited to assist in determining if you should convert or stay in the 13 or elect any other option that may be available.

Des.

[SMinGA2]

Your home owner's insurance may have a medical/liability coverage for the dog bit. Check with your insurance carrier on that.

Certainly speak to your attorney. While waiting to hear back, start doing some research. What are your options for rentals - in terms of what will it cost per month for the size home you need? What will be the tax consequences? (You may need to adjust your withholding, to take out a little more tax, if you'll no longer be able to itemize without the tax deduction.)

Holding onto a house you cannot afford due to emotional ties was probably a mistake. But this is something you can rectify. If things are dire & you cannot keep up the ch. 13 payment when your income drops AND pay for a rental, you may want to schedule some face time with your attorney. Go over your #s, change in income (when, why, how much), change in expenses, etc. You can also do some research to get an idea of how long you'll have in your current house before you have to move. Hopefully you're saving up some $ for the move.

[moving2011]

Thanks for replying. Actually i had a choice of ch 13 or 7. i choose 13 because at the time i felt like i could handle all the payments. I filed because i got behind on my ccs, cash advance loans, hospital bills, etc. i also chose ch 13 because i didnt have the money up front for the chapter 7. I thought that you had to get deed n lieu to surrender home. I am just really looking into my options, which seem 2 be many. Either way i have more than i can afford and i need to let the dear old house go. sorry that im jumping all over the place. a little adhdish. thanks for the information.

[moving2011]

I forgot to add that i have a 1st and 2nd morgtage on my house. they are suntrust mortgage and suntrust bank. I just need for the house to go away. and another thing about the home owners insurance for dog bite. well my dog is considered a vicious dog and i will be in a wholeeee lot of trouble with them. they will probably cancel my house insurance for that. thanks.

[ValleYum]

If you are giving up the house, insurance cancellation won' t be a big deal then. Renter's insurance is fairly easy to obtain from any company - you may have to pay a bit more in the worst case scenario.