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If I receive a loan modifcation bringing my mortgage current, can I change from chapter 13 to a 7 to relieve more financial debt

Charlotte, NC |

I filed bankruptcy to only save my house, I could care less about losing my furniture, car or any other items in bankruptcy. I want to keep my house because rental apartments cost just as much as my home. I can't a4 the bankruptcy payments and just want to start from scratch.

Attorney Answers 5

Posted

If you have a bankruptcy attorney (which you should in chapter 13) this is a question that should be posed to him or her. There are some complex implications in conversion from chapter to chapter, and it's not something that should be undertaken without careful consideration and legal advice in view of the full facts.

Given the right facts, it is possible for a modification to bring a mortgage current and then keep the house through chapter 7. I cannot say if that is your situation or not.

I'm a <a href="http://www.eastwakebankruptcy.com">North Carolina bankruptcy attorney</a>, licensed to practice law in NC only and concentrating in the areas of bankruptcy and consumer debt law. This post does not create an attorney-client relationship, and is for general information only.

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Posted

To answer your question ... if the only reason you were in a Ch13 was to catch up on arrears and save your house, and you otherwise qualify for Ch7, then, yes, you should explore converting to Ch7 a.s.a.p.

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Posted

Based on the information provided there is no way to answer your question. We don't know if you are an above median income debtor or below median. I hope you have an attorney, and if you do, contact him or her. If you don't you may want to have one assist you from here on out. There are a number of in attorneys in Charlotte who participate on this forum as well as many who do not. Try going to the attorney finding tool at www.nacba.org.

DISCLAIMER: This message is intended as a general discussion of legal issues and not as a statement of fact, legal advice or a legal opinion. No attorney-client relationship is created by this message. Do not act or rely upon law-related information in this communication without seeking the advice of an attorney licensed to practice in the relevant area. I am a Federally Designated Debt Relief Agency under the United States Bankruptcy Code. I proudly help people in financial need file bankruptcy cases. IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication (or in any attachment).

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Posted

Yes, but you need to consult with your BK atty about the "side effects". Good luck.

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Posted

I agree with Mr. Fabricius and Mr. Caldwell, there isn't enough information to give you an accurate answer. You should consult your attorney. If you filed pro se this may be difficult. The simple answer is yes, you can possibly convert. The problem is that we don't know if you even qualify for a Chapter 7, or if you have any property which has equity, possibly including your home which would be lost in a Chapter 7. You need to consult your attorney or an attorney to discuss conversion.

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