Just because you received a settlement does not mean you can no longer file bankruptcy. The bigger question is how much of the settlement can you keep and still file bankruptcy. Since you live in FL, FL law will control. Your best bet is to get in to see a bankruptcy attorney ASAP, before you spend or move any of the settlement around.
First I am assuming that Capital One is suing you, not your Corporation. So if you file bankruptcy, the corporation is listed as an asset of your bankruptcy. You then have an amount of assets you get to keep. You keep these assets by applying the proper bankruptcy exemptions to those assets. If you are able to exempt the entire value of your corporation, you will get to keep the corporation. If you cannot exempt the entire value, your trustee may liquate the asset to pay off your debts.
The underlying debt (The note) has been discharged, but the creditor still has a lien on the collateral (The Mortgage.) Since you are in default, then they can foreclose, but they can never claim that you owe them any money. That would be a violation of the bankruptcy discharge, for which you could file suit against them!
Keep in mind that the property is still in your name until they do foreclose, you should keep insurance on the home and keep the lawn cut to not get lawn cutting fees for...
The best way to reestablish your credit is to start using credit again. My Chapter 7 clients tell me that they get multiple credit card offers within months of their bankruptcy ending. The credit card companies know you cannot file a Chapter 7 again for 8 years, you are a good risk to them now.
Do determine what chapter is best for you we need more facts. How much money do and your household make per year? What kind of debts do you have? What are the balances of those debts? What sort of assets do you have?
Once you gather all of that information, make an appointment with a bankruptcy attorney and they will be able to let you know what chapter is best for you.
I you are in a Chapter 13 Bankruptcy and your Chapter 13 plan is curing your arrears, you are current on your current payments and current on your Chapter 13 plan payments, the stay should never be lifted. Mortgage companies only file motions to lift the automatic stay when you are behind on your payments.
If you were to get a Motion to lift, you should immediately call your bankruptcy attorney.
Not seeing what you entered into this is just a guess, but my assumption is you entered into a consent judgment that contained the repayment terms. If this is the case, this is still a judgment, and can still be on your credit report.
If you have a judgment against you, that was covered in your “Property Settlement” of your judgment of Divorce, this “Property Settlement” obligation is only dischargeable in a Chapter 13 Bankruptcy. If you change to a Chapter 7 bankruptcy, the obligation as to the “Property Settlement is not discharged. You should probably find a way to stay in your chapter 13 if his is what your question was referring too.
In Detroit you just need to find a new attorney that would like to take your case, and then file a stipulation of new counsel. The new attorney will bill the Chapter 13 plan for any work they do; the old attorney will also bill the plan for what they did. Before you try to switch, attempt to resolve the issue by explaining your issues with your current attorney.
Here is what I tell all of my Bankruptcy clients. “Just tell me everything and let me sort it out for you.”
You just need to tell your Bankruptcy attorney everything and let them list it all properly for you. Long story short, if the home has a mortgage on it for more than the home is worth; most bankruptcy trustees are not interested in the home unless the mortgage is not current. You probably have nothing to worry about, but tell your attorney and let them protect it for you.