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HELP! Is it too late?Chapter 7 bankruptcy and mortgage foreclosure

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angelal319

Junior Member
What is the name of your state? Missouri
My husband and I are going through a Chapter 7 bankruptcy. We have already had the 341 meeting where the trustee said she was going to require our 2005 taxes and then we had to make an agreement to pay a small amount over the next 12 months. The problem is that our mortgage company just filed a release of stay so that they can proceed with foreclosure. When I first met with my attorney, I told her that we were 2 months behind and she said to contact them and see if we could work out a deal to catch up. I did this and filled out paperwork, sent it in, but never heard anything from them. I called, but couldn't get a call back on the matter. Then all of a sudden, they are foreclosing. I'm wondering if the financial stuff I filled out for them could have told them that we couldn't afford it, so they are just foreclosing. Anyway, now I don't know what to do and what our options are. My attorney laughs at me everytime I ask a question and treats me like I'm and idiot for asking, so that's why I'm coming here with this one. Can we still switch to a Chapter 13 at this point? Can my attorney negotiate an arrangement to pay back? She says we only have a week to decide what to do- but I don't understand all of the options we have available. Obviously paying the lender in full- but what if we can't do that?
 


bigun

Senior Member
I'm wondering if the financial stuff I filled out for them could have told them that we couldn't afford it, so they are just foreclosing.

If you can't afford it, why are you trying to stay in the house/ BK is about a fresh start-not being encumbered with home that's unafforable.
Do you have any equity in the home?
 

Ladynred

Senior Member
Get your attorney to file an objection to their Motion for Relief from Stay and don't let her laugh at your request. SHE works for YOU, that is what you are paying her for - not her arrogance. The objection will get you a hearing and then you'll have to figure out how to get the payments caught up or make a deal to add the arreage onto the end of your current mortgage.

What 'options' have been laid out for you ?

I have to agree with Bigun.. if you can't afford the house, what's the point ?
 

angelal319

Junior Member
re: is it too late?

I lost my job, which is why we need to get out of the house. We've been doing some work to get it ready to sell. We have about $50,000 in equity so we really don't want to just lose it all- potentially. We planned on getting it on the market in the next month, but now that the lender has filed and wants to foreclose- we don't have but a week now to decide how to handle it. As far as what my lawyer has said, I have to either come up with it, or show that I can come up with it in the near future. She didn't even mention the possibility of putting it on the end of the loan. I'll have to talk to her about it :(
Is there other possibilities? Someone told me that they would give me time to sell it possibly.
Thanks for your help
 

angelal319

Junior Member
i forgot to mention

What I forgot to mention is that we just needed a little time to sell it, will the court grant us that?
 

Ladynred

Senior Member
Yes, its possible they may give you time to sell it but if you don't object to the relief from stay you will likely lose the opportunity to do so.
 

angelal319

Junior Member
So if we object to the relief from stay, then when we have our hearing we just have to either prove we can pay or ask them for time to sell? How long is it usually before we have a hearing?
 

Ladynred

Senior Member
Yes, you get a chance to convince the judge NOT to grant the motion.

How long it takes for a hearing probably depends on the caseload on the judge's desk.
 

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