Chapter 13 Relief of Automatic Stay Petition for Our Home

[firefightermike]

My state is the State of Georgia

Good morning all,
I realize this is not the happiest of forums but am trying to be optimistic although that is not working well. I am 30 months in on a Chapter 13 and have 30 months left. I put myself and my family into this mess and I am trying to get us out.
We are paying a large sum for our unsecured debt directly to the trustee and paying house payment and equity loan directly to Navy Federal under Chapter 13 protection. Last Tuesday I received a notice from the Bankruptcy Court that Navy Federal's Attorney has filed a Petition to lift the automatic stay on our mortgage loan because we are 2 months behind on payments, February and March) and the fact that we do not have enough equity to protect their interest. They wish to start foreclosure proceedings. We have made those payments in February and March, however they were late. The payments are being held and not applied to our loan. We stumbled when our transmission went out and $2500 dollars later... Our bankruptcy attorney says to bring the money to court and that "maybe" the judge would deny the motion. Our attorney negotiated his retainer with the court 30 months ago and was paid very early on. I have the feeling we are going to be on our own.
Does anyone think keeping the house is a possibility?
I do not want to lose our home but if we lose the house, do you think the court will allow us to obtain an apartment? We have been in our house for 24 years and like the idiot I am, I have refinanced a few times.
My house payment is $680. If I lose the house,(which is a Veteran's Backed Loan), the cheapest apartment in our area is $850. Will the court take that into consideration and adjust my Chapter 13 reorganization so that we have someplace to live? Or should my family be prepared to live in the car? I truly appreciate everyone's time.

 

[latigo]

My state is the State of Georgia . . . . Our bankruptcy attorney says to bring the money to court and that "maybe" the judge would deny the motion. . . . . . .

Do as your lawyer suggests!

However, it is unlikely that the bankruptcy judge will rule favorably unless you can give assurance of your ability to maintain the payments current. So be prepared with the needed figures of income and expenses. And not just in your head!

Your situation is indeed unfortunate and yet you must recognize that the bankruptcy court is bound to acknowledge and protect the rights of the secured creditors as well as that of the petitioning debtors.

 

[bigun]

I do not want to lose our home but if we lose the house, do you think the court will allow us to obtain an apartment? We have been in our house for 24 years and like the idiot I am, I have refinanced a few times.
My house payment is $680. If I lose the house,(which is a Veteran's Backed Loan), the cheapest apartment in our area is $850. Will the court take that into consideration and adjust my Chapter 13 reorganization so that we have someplace to live? Or should my family be prepared to live in the car? I truly appreciate everyone's time.


Why did you file a Chapter 13? Was it just to save the home?

Hopefully things will work out for you but, if it doesn't speak with your lawyer about converting to a Chapter 7.

 

[firefightermike]

Thank you

We filed chapter 13 to save our home and to pay our creditors back. I went in wanting to make thinks right. I did not want to be absolved of all debt, I wanted to pay it back. My attorney suggested it and had us take the means test. We did not qualify, which believe it or not, seemed like a relief that maybe I could pay back what I owe. We have paid off half of our unsecured debt. Once again, this is my fault, I am not looking for the easy way out, I just don't know how I will be able to pay for a place for my family. If the court grants the motion, we lose our house and no longer have to pay the $680 to the mortgage company, the judge and trustee could view that as disposable income and take that to pay our creditors instead of letting us have it to pay for an apartment. I am almost 50. That saying "You reap what you sow" means a lot more now.

I do know that the bankruptcy court also protects the creditors. I do want to pay them back. I owe them.

Well, I am done and don't believe there is anymore that I can do. Failing your family is the biggest disgrace a person can commit.
I appreciate you two taking the time to talk to me. Thanks again.

 

[latigo]

I do not want to lose our home but if we lose the house, do you think the court will allow us to obtain an apartment? We have been in our house for 24 years and like the idiot I am, I have refinanced a few times.
My house payment is $680. If I lose the house,(which is a Veteran's Backed Loan), the cheapest apartment in our area is $850. Will the court take that into consideration and adjust my Chapter 13 reorganization so that we have someplace to live? Or should my family be prepared to live in the car? I truly appreciate everyone's time.


Why did you file a Chapter 13? Was it just to save the home?

Hopefully things will work out for you but, if it doesn't speak with your lawyer about converting to a Chapter 7.

Dear B:

I was hoping you would crawl out from under whatever, so please enlighten an admirer (me) in much need of illumination post-Bush BK law. What to be gained by converting other than to end 13 payment plan? House still gone? Better able to afford apartment? Or look for large used automobile?

 

[bigun]

Dear B:

I was hoping you would crawl out from under whatever, so please enlighten an admirer (me) in much need of illumination post-Bush BK law. What to be gained by converting other than to end 13 payment plan? House still gone? Better able to afford apartment? Or look for large used automobile?

What brought that on?

I asked a question in a very polite and non judgmental manner-unlike yourself.

Just trying to understand why the OP filed a Chapter 13 to save something that very likely has little or no equity. Nothing sinister in the question at all.
The Op seems to be racked by quilt and wants to repay his creditors. So be it.
The advantage to converting to a seven may well be ending the 13 and losing a house that's underwater .
What about the auto? He never mentioned that it's part of the 13.

To the OP. You won't be left homeless.
Should the judge rule against you, get yourself to your attorney and get all of your options explained.

 

[latigo]

What brought that on?

I asked a question in a very polite and non judgmental manner-unlike yourself.

Just trying to understand why the OP filed a Chapter 13 to save something that very likely has little or no equity. Nothing sinister in the question at all.
The Op seems to be racked by quilt and wants to repay his creditors. So be it.
The advantage to converting to a seven may well be ending the 13 and losing a house that's underwater .
What about the auto? He never mentioned that it's part of the 13.

To the OP. You won't be left homeless.
Should the judge rule against you, get yourself to your attorney and get all of your options explained.

B! My humble apologies as I meant no offense whatsoever.

The truth is that my initial draft to the thread was to advise the OP to wait and hope to hear from you! Whom I respectfully consider to be the site's one authority on bankruptcy.

I haven't look at the Code or Rules since Congress in cahoots with GWB and his Wall Street bed fellows messed with it. I had assumed that a C. 13 could preserve a debtor's resident and a C. 7 wouldn't. But then I know nothing of the consequences of the l999 amendments (e.g., Rule 1019) with respect to converting to a C. 7. Nor do I know of any better plan for the OP at the motion hearing to lift the stay than that recommended by his lawyer except to be prepared as I mentioned.

Anyway it greatly upsets me that I have unwittingly upset you. Again I sincerely apologize.

 

[bigun]

Apology accepted.

I think the OP is in an unworkable plan. WIth numerous refi's he's very likely underwater and trying to save something that has no value and he can't afford.

Should the judge grant the RFS, he needs to get to a lawyer ASAP.
He won't be homeless-all the RFS stay does is allow the lender to start foreclosure proceedings and they must follow state law with all the proper notices and timelines. He likely has 6 months or more of rent free living. Also, his lawyer can run schedules I and J again since circumstances have changed and he appears to be facing a higher rent expense that his mortgage. I have no idea his family size or what county he resides in but the IRS standard is likely to be far more than $680/month and that may well be enough to get him into a Chapter 7 if he wants to go that way.

If he still wants to try and make a fight out of it, your suggestion is the way to go. Be prepared to show that this is a one time thing and can make payments on time going forward.

 

[latigo]

Apology accepted.

I think the OP is in an unworkable plan. WIth numerous refi's he's very likely underwater and trying to save something that has no value and he can't afford.

Should the judge grant the RFS, he needs to get to a lawyer ASAP.
He won't be homeless-all the RFS stay does is allow the lender to start foreclosure proceedings and they must follow state law with all the proper notices and timelines. He likely has 6 months or more of rent free living. Also, his lawyer can run schedules I and J again since circumstances have changed and he appears to be facing a higher rent expense that his mortgage. I have no idea his family size or what county he resides in but the IRS standard is likely to be far more than $680/month and that may well be enough to get him into a Chapter 7 if he wants to go that way.

If he still wants to try and make a fight out of it, your suggestion is the way to go. Be prepared to show that this is a one time thing and can make payments on time going forward.

Grazie!!!!!!