Expert: Terry Leeders - 11/12/2008

Question
Hi,
Thanks for taking my question. I live in Mass., and filed for Ch. 13, I have 20 months left on a 36 month plan.  I am several months behind on my mortgage due to spouse's job loss.
We have only my income, and I just cannot seem to make it.  I have received a notice that foreclosure proceedings have been restarted since I could not keep up with the terms of  the filing.  Is it possible to file Chapter 7 and keep the house?  There is some equity in it, and there are several other issues (septic lien), and an adjacent property that we own that must go with the property(the house is on(leach field), but I think it is listed in my homestead as personal property.  Anyway, is it possible to go Chapter 7 and still keep the house, at least until we can find a buyer for it?
This is Massachusetts, and a house heated solely by wood, if we have to move, the house will be ruined with no one there to feed the stove for heat.  I had a Chapter 13 attorney, but frankly, I cannot afford him right now.  I would appreciate any advice you might have.

Answer
If you convert the case to Chapter 7, the trustee can liquidate any assets that are not fully exempted in the case.  Your attorney can give you some guidance.   Perhaps, you can discuss with your lawyer about a motion to lower or defer payments to help get you back on track, that may be the best option for you.