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So I'm currently in a confirmed Chapter 13 and no this is not my first time on the forum. I'm retired disabled vet and seriously thinking about dismissing my chapter 13 and trying to utilitize the new Haven Act that was signed into law last year. My only non exempt income is my military retirement. Had lots of trouble when I first filed was told to stop paying mortgage(hence mortgage arrears) fired first atty, second atty said they could get me in a Chap 7 fast forward Chapter 13 confirmed and payments are $2880 per month for another 2 years, 7 months.
So lots of things I feel like could have been done to help my situation however blame it on me (not knowing) or just bad advice. What I'd like to do is somehow get out of this Chapter 13 (or get payments lowered) Only paying secured debt and IRS. Not in 100% plan. However most of the income I use to pay my plan is exempt (SSDI/VA Disability). I have been conversing with paralegal/current atty office since before the bill was signed into law about the payment being very high and getting some relief. I've had 2 modifications due to emergencies and of course everything I did was to save my VA home loan.
Any idea if I dismiss my Chapter 13 if my mortgage company will work with me or will the arrears just be due ASAP? Should I try to modify? Its a VA Home Loan mortgage co is Mr Cooper; never tried to modify have no clue how it works I think mortgage arrears is about $6K but my informational statements also show past due payments of $5K so not sure if one is just escrow and the other is payments. Should I try to modify before dismissing? What's my chances?
My idea situation would be to modify my mortgage get it out of my Chap 13 get rid of car(2013 Luxury SUV) get reasonable vehicle and payment with IRS then file Chapter 7 but not sureI wish I had the $7k outright but I don't any advice on how to proceed? Or do I just keep plugging away on current plan? Looking for any words or wisdom or insight? Thanks, desperately want a change in 2020!
Sorry for the long post hoping I explained enough!
I know of someone in the same boat. I will contact them and see if they have any advice. Following and wishing you the best
I still wonder whether or not you've talked to the right attorney.
While I'm sure some people have found good attorneys for a low cost, I truly think it is a case of "you get what you pay for".
In my case, the lower cost attorneys simply didn't want to be bothered and tried pushing me off to someone else for a 13. A $750 CH 7 attorney generally wants to crank cases out that are very black and white. Any complications and they don't want to deal. I ended up paying $3k or $4k and my attorney was amazing and got it done. (I had a high income CH7.)
This will be an even bigger mess if you dismiss the current 13 and can't get the 7 for whatever reason. You need to be consulting with GOOD attorneys and find someone who knows if this can be done and can get it right if it can.
Generally with Ch 13 and a decent attorney, your home loan back payments will get paid first.
In other words, if you $10,000 behind and had a $1000 mortgage and $2000 Ch 13 payment...
Your first $1000 would go to your payment, another $500 would go to back payment, $500 would go to everything else.
Something like that.
If you are half way done with a 13, your mortgage should be caught up or close to I would expect.
How much of your payment is allocated to UNSECURED debt?
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I'm currently in the same boat. I am currently in a Ch 13, but it's crushing me. I was recently approved for my VA disability, but my lawyer isn't so sure if the DOJ would allow me to convert from a ch 13 to a ch 7 because I only have $16,000 in debt. She said that the only way it makes sense is if I give up my car. I'm okay with that. I'm just wondering how my VA disability will figure into this? What happened with you?
Just curious how old is the IRS debt? Is the IRS debt sales tax related or back taxes?
Hi @ballysdad @my IRS debt is back taxes and not associated with any type of sales tax. I gave up on converting and happy I'm almost 3 yrs into my chap 13 which will discharge in 2022 with all IRS debt included in my plan. They only go back 3 years anything over that was deemed unsecured and discharged when my 13 is done.
Thank you I have IRs debt well over 3 years on my Ch7 petition I am trying to get discharged. Wondering if I was going to have an issue.