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  1. #1
    Join Date
    Dec 2010
    Posts
    1

    Default Chapter 13 Modification

    My question involves bankruptcy in the state of: Florida. I am 2 years into a chapter 13 and I am a divorced male living with my daughter, her husband and 2 kids. I have had no problem making my ch 13 payments up until now but it's all falling apart.
    We had 3 incomes and now I have one, The kids are divorcing and they are all moving out.
    I can probably afford the payments still, barely, but I am too old to take care of the house we are living in by myself and I asked my lawyer what to do.
    He told me to stop paying the trustee and default on the ch 13 and he could refile the new ch 13 without the house.
    I am wondering if this sounds feasible.
    I can just let them have the house, and refile for a new chapter 13 even though I make enough money, in their eyes , to continue paying. I know that in a short period of time that would all fall apart by some unforeseen incident. A small toilet leak last month cost $480 in an extra water bill. The roof is old with a small leak, and the septic tank is ready to fail.
    Is it really possible to redo a chapter 13 by saying I can no longer maintain the home on my own?

  2. #2
    Join Date
    Sep 2010
    Posts
    478

    Default Re: Chapter 13 Modification

    Why can't you simply modify the Plan to show the surrender of the home and reduce your Plan payments to an affordable level based upon your current income and expenses? You need to ask what is left in the 13 to pay. If there was funding earmarked for the mortgage that has not already been paid out you can remove that funding and reduce Plan payments for the balance of the Plan. If the Plan was paying unsecured creditors based upon your ability to pay 2 years ago and your income has dropped so too should the amount paid to unsecureds. If a modification is possible you will not have wasted 2 years.

    On the other hand, if you cannot reduce payments through a modification then a dismissal may be appropriate and filing a new 13 is possible - or, if you qualify for a 7 and do not have any issues of non-exempt assets or non dischargeable property settlement (that would be discharged in a 13), maybe consider the 7.

    The problem is there is no way for us to really advise since we do not know the specifics of your case. There are many options. Finding the best one is something you and your attorney need to work out.

    Des.

  3. #3
    Join Date
    Jan 2011
    Posts
    4

    Default Re: Chapter 13 Modification

    Yes, modification of a Chapter 13 is possible - either to increase or decrease the length of the plan, or it can be converted to a Chapter 7. All of these options require the advice of your attorney.

  4. #4
    Join Date
    Jan 2008
    Posts
    164

    Default Re: Chapter 13 Modification

    convert to a chapter 7 you will be glad you did!


    God Bless

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