In a chapter 13..paying a trustee..and paying my mortgage..Can you switch to chapter 7 and keep the house?

If you are represented by counsel, you should contact your attorney because he or she knows your unique set of circumstances.

If the amount of disposable monthly income in your household changes, theoretically the Chapter 13 Trustee could ask for a higher Plan Payment.

Whether you can keep your house after converting your case to one under Chapter 7 depends on the amount of equity you have in the house. However, I'm not familiar with CA law. Contact your attorney for more information on CA's homestead exemptions, and the procedure for converting your case to one under Chapter 7.

I hope this information was helpful.

*I am not licensed to practice law in CA. My response to your post on avvo.com was not legal advice, but was for informational purposes only.

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In the Central District of California, where I assume your case is pending, yes, the Trustee will move for a modification of your chapter 13 plan if your monthly mortgage payment goes down, which in turn increases your net disposable income. Mr. Cohen is very sharp, and will not let something like this go without seeking a modification.

If your mortgage is current, and you convert to a chapter 7, so long as you remain current, you can generally keep the house and just continue making payments. Be aware that a conversion to chapter 7, or even just the fact that you are in chapter 13 may prevent you from getting a loan modification. The loan modification will have to be approved by the Bankruptcy Court while in a chapter 13, while it does not in a chapter 7.

You do need to discuss this with your attorney if you have one. If you do not, you should consider retaining an attorney as this is going to be complex, and require more than you may be able to handle unless you want to spend a decent chunk of time learning bankruptcy law.

*Due to the limitations of the Avvo Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.