In 2021, I consulted a Chapter 7 lawyer after losing my job because I wanted to save my home. That lawyer suggested filing Chapter 13 but apparently filed a Chapter 7 case without telling me. I later hired a new lawyer to file a Chapter 13, which is now too expensive for me to afford. My payments keep going up, and I can’t get a loan against the equity in my house because I’m in bankruptcy. My lawyer says dismissing the Chapter 13 could lead to losing my home if it reverts back to Chapter 7. I’m stuck paying rising payments I can’t afford, and my attorneys are not helping. What can I do to get out of this bankruptcy without losing my house?
It sounds like a complicated situation. You might need to consult a third attorney to review the entire case and see if there’s a way to adjust the Chapter 13 plan to make it more affordable.
Harley said:
It sounds like a complicated situation. You might need to consult a third attorney to review the entire case and see if there’s a way to adjust the Chapter 13 plan to make it more affordable.
Agreed. A new attorney might help you explore options like extending the repayment period or modifying the plan to lower payments.
Harley said:
It sounds like a complicated situation. You might need to consult a third attorney to review the entire case and see if there’s a way to adjust the Chapter 13 plan to make it more affordable.
If the payments are based on your income, you might be able to request a modification based on your current financial situation.
It’s unusual for a bankruptcy to be filed without your knowledge since it requires your signature and participation. You might want to review the original filing documents to confirm what happened.
Caden said:
It’s unusual for a bankruptcy to be filed without your knowledge since it requires your signature and participation. You might want to review the original filing documents to confirm what happened.
That’s a good idea. If there was any miscommunication or mistake in the initial filing, you might have grounds to challenge it.
If you have equity in your home, it’s possible that refinancing could help you pay off the Chapter 13 plan entirely. A bankruptcy attorney who specializes in real estate issues might help.
Ari said:
If you have equity in your home, it’s possible that refinancing could help you pay off the Chapter 13 plan entirely. A bankruptcy attorney who specializes in real estate issues might help.
Good point. Some lenders work with homeowners in bankruptcy to help them leverage equity for a payoff. It’s worth exploring.
Dismissing the Chapter 13 without a clear plan might lead to foreclosure, so tread carefully. You need a detailed consultation with a lawyer who can evaluate all your options.
If the Chapter 13 is unaffordable, consider asking your attorney about converting back to Chapter 7 while working out a plan to protect your home. A fresh set of eyes on your case might help.
Parker said:
If the Chapter 13 is unaffordable, consider asking your attorney about converting back to Chapter 7 while working out a plan to protect your home. A fresh set of eyes on your case might help.
True. A conversion to Chapter 7 could work if you can find a way to exempt your home equity. A detailed review of your case is essential.