Converting to Chapter 7 After Foreclosure
I was in Chapter 13 bankruptcy for about a year and a half. The payments were almost $1000/month. The payments were so high that my mortgage became delinquent three times, resulting in foreclosure. I asked on all three occasions for help from my attorney--either in reducing payments (I was only $27,000 in debt or communicating with the mortgage company to help avoid the foreclosure.) Instead, my attorney ignored emails and did not return phone calls as I was begging for help in keeping my home. I even went to her office several times and was told she wasn't there. Frustrated, depressed and broke, I gave up and relinquished possession of my home to the foreclosing mortgage company. My bankruptcy case has since been dismissed but I still owe debt from my second mortgage and a car which I still have possession of. My questions are multiple:
1. Do I now convert to chapter 7 which is my desire or do I start over and file Chapter 7?
2. Can I hire a different attorney because of my attorney's negligence?
3. Can I include debt incurred after the filing of the original Chapter 13? (i.e. my old attorney's many fees?)
4. Will I more than likely have to give back my car?
Please help!!
Re: Converting to Chapter 7 After Foreclosure
This is a difficult situation to try and give answers without a full knowledge of your situation.
1. Are you sure you will qualify for a Ch 7 now? I assume you have less housing expense now, so that would make a Ch 7 less likely than another Ch 13. Whichever you file, it will be a new case. Look for the rules on how long you must wait before filing a new case.
2. You can hire another attorney for any reason.
3. Yes
4. Not if you can afford it and your living expenses.
From the information you have provided, your attorney should have made a motion to suspend payments or possibly lower payments depending on why you didn't have the funds available to pay your expenses and Plan payment. You might think about making a complaint regarding that attorney.
Re: Converting to Chapter 7 After Foreclosure
I believe the debtor would be required to pay the trustee the difference between the value of his motor vehicle and the allowable exemption, or the trustee could seize the vehicle and sell it, give the debtor the exemption amount, and disburse the balance to the unsecured creditors.