Trustee Question - Please Help!

[robertrk]

What is the name of your state? Maryland

Since the trustee objected to our refinancing and paying off our chapter 13 plan, I am advising my atty to withdrawal our motion to refinance so that we will not have to appear in court and deal with this anymore. But my question is this. Even if we withdrawal our motion, can the trustee still come after us even though we will not be refinancing our two mortgages into one and paying off the plan, and force us to sell our house to get any equity out of it? Our house originally appraised for $120,000 when we filed in Nov. 2002. We have two mortgages that combined, total remaining balances is approximately $145,500. Our chapter 13 payoff is approximately $8680.00. Even though we have and always have been current with our mortgage payments (never any lates) we are paying our mortgages outside the chapter 13 plan payments. Can the trustee, even though we will not be refinancing, still force us into court and take away our home to get any of the equity remaining? Anyone please advise! We are devastated and sick over all this worry of the Trustee coming after us! Thank you kindly.

 

[Ladynred]

People file CH 13's so they can KEEP their homes. Its unlikely the Trustee will want to take it now. However, I believe you stated that your plan was modifed after you lost your job, but you now have another job. The Trustee could very well make you modify your plan again to put your payments back up to reflect your now-enhanced income.

 

[robertrk]

Response to LadynRed

LadynRed,

Thanks for your input. I also wanted to let you know that when we modified our plan to the lesser payment plan, this modified plan included my new job's income. It was based on the difference between the previous job I lost and the new job I was hired for. The new job pays almost $13,000 less per year than the previous job I held for almost 17 years. My previous job ended due to the company closing it's operations. I found a new job right away. I continued to pay the higher payment plan for 5 months until my severance ran out. Once my severance ran out, our atty said we could then file to modify our plan to a lesser plan amount. This is what we did. So the modified plan did actually include the new job's income. This is why I am worried as to why the trustee feels differently about this. It was not my fault we had to modify to a smaller payment plan. I had no control of over the company closing it's operations. The only reason we decided to try and see if we could refinance now is because we could cut our two mortgages into one, payoff the chapter 13 plan and be able to help our daughter get into her first year of college. I never meant to do anything wrong. I am a honest person who made poor financial mistakes and ended up where I am today. But in know way am I trying to get over on anyone or anything. I am so worried and scared. It is an awful, sinking, numb feeling. Thank you very much for all your support.

 

[Ladynred]

The Trustee has to approve any and all new credit transactions, so he/she refused your refi. That doesn't mean he/she is now going to try to take your house away. If anything else comes of this, it could be an audit of your plan payments.