I've been in a chapter 13 for a year. I originally got into it because I was behind on my mortgage payment. My mortgage company has now approved me for a loan modification. So all the arrears would be put on the end of my loan. I can basically start fresh. I presented everything to my attorney he advised against it. He said because I dont know what the final loan would be until my trial payments are done. That is the only reason I got into this is cause I was behind. Also I was current on my car payments when I filed and now I'm going to be behind they haven't been making all payments. And I dont forsee paying on my car for 10 yrs when I've already been paying on it for 5 yrs. So I'm wondering if I dismiss this and do the loan modification will I be opening up a whole new mess especially with my car? I really want to do this loan modification but I want to make sure I'm not gonna create a bigger mess.. Any advice would be great!!!
In answer to your initial question, yes you can dismiss your chapter 13, so long as it was not converted to a chapter 13 from another chapter. Whether its a good idea or not: you have an attorney with all of the relevant information. The attorneys on this forum would be telling you their opinions based on very little information. Talk to your attorney again, or consult with another attorney and provide that attorney with all of your paperwork to discuss what you should do.
This response is not intended as legal advice. You may need to consult your own attorney to obtain a more specific answer.
I agree with my colleague. You can dismiss your chapter 13 at any time, as long as it was not converted to a chapter 13 from another chapter. It is impossible to tell you whether it is a good idea or not for you without a full analysis of your financial picture. You can enter into a modification and modify your chapter 13 plan, or you can explore converting to a chapter 7 and giving your car back to the finance company, or it might make sense to just dismiss your case altogether, but I can't really advise on which option is best for you with out reviewing your chapter 13 case and the creditors that being paid through your chapter 13 plan. I would speak with you attorney in more depth. If you do not think you are getting sound advice, then I would call a couple experienced chapter 13 attorneys and gather some 2nd opinions from them.
The information provided herein is general information only and not legal advice. The information provided herein does not create an attorney client relationship and is not a substitute for having a consultation with an attorney. It is important to have a consultation with an attorney as the information provided in this forum is limited and cannot possibly cover all potential issues in a given situation
I agree with Ms. Hill's reply.
In addition, in the Eastern District of California, you ordinarily must have the loan modification approved by the couert for it to be effective and usually in stages; the initial discussions, the trial modification and the final modification all should or must be approved by the court. A change in a contract while in chapter 13 isn't effective unless the court has approved it.
On the other hand, I have had many of these in which the modification took place without my knowledge and where we dismissed the case in your situation once it was in place. If you do this before the modification is final, you run the real risk that the mortgage company finds some reason to deny the final modification. This seems to happen a lot.
Talk to your attorney about what you want to do, why you want to do it and follow their advice.
Disclaimer: This answer does not constitute legal advice. I am admitted to practice in the State of California and the Federal District Courts in the Eastern, Northern, Central and Southern Districts of California only. My experience is in those jurisdictions only. This advice is based on general principles of law that may or may not relate to your specific situation. Facts and laws change and these possible changes will affect the advice provided here. In reading any advice or opinion given you agree that I do not have all or the facts so that any statement here may not be complete or fully accurate. You must consult an attorney in your locale and make sure that they are fully informed of your situation and the facts of your case before you act on any of this advice. You should not rely on this advice alone and nothing in these communications creates an attorney-client relationship.
If you have a trial modification, it is not final. Talk to your lawyer after you have a permanent modification. I have seen many trial modifications screwed up by the lender.
Please note this is to be considered general advice and not legal advice about any particular situation. The answering of any question does not create an attorney client relationship and does not make the answer specific legal advice. I am an attorney admitted to the practice of law in the state of Georgia. Â
You have an attorney that is familiar with all of the specific details of your case. No one here can give you reasonable advice without knowing specific details.
You should ask your attorney your questions again.
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