My question involves bankruptcy in the state of: Pennsylvania
Due to a long standing illness (which is what caused us to need to file in the first place) we were not able to keep up with our payments on the Chapter 13that we filed. The payment we were making was to help save our home. I have seen people post and ask if they can convert to a Chapter 7. My first question is, must this be done BEFORE the court dismisses the case or can/should it wait until after that is completed? My reason for asking is that, we filed in January to prevent the home from being sold at Sherriff's sale and put the home on the market immediately. With the advice of our realtor, who is certified in Short Sales, we are deciding whether or not to drastically reduce the price and ask the mortgage company for more time or ask them about a short sale. I am currently waiting a pay off figure from them.
Our attorney has not been helpful and, in fact, we did not get the actual bankruptcy papers until the day of our creditor hearing so we were not aware of the payment amount, which was much higher than he projected. He said he would look into it but still has not and it is too late at this point. With me not able to work (and trying to get disability) we don't have the money to make up payments we've missed so we are prepared to lose our home (hopefully some other way than foreclosure though we are prepared for that as well)
Anyway, the reason I ask about when to convert is because we are not sure if we need to or will have to (?) include any amount that would be left over if the home is forclosed on? What would you recommend as far as when to convert ot a Chapter 7 or do we let the bankruptcy dismiss and then file for a 7? Can we do that?
Thank you very much. Our attorney has not gotten back to us after we've left several messages and we want to be able to stay on top of it. We know he is very busy but we need answers or even just basic direction. Thank you again.