Expert: Terry Leeders - 12/1/2008

Question

Hello
I was hoping you could shed some light on my situation.
I am behind on my 1st mortgage payment 4 months.
I am behind on my second mortgage payment 3 months.
I filed a chapter 7 that was discharged on January of 2008.
I was hoping to file a chapter 13 to save my house.
1st mortgage I want a repayment plan.
2nd mortgage I want stripped.Both mortgages were included in the chapter 7 and discharged but not reaffirmed.
House value is about 340,000.I owe 1st mortgage 370,000 and 2nd mortgage I owe 96,000.I am working and collecting rent from my tennants.I live in New Jersey.The question is
can I be Successful in what I am trying to accomplish.
The 2nd mortgage is now unsecured debt and was discharged in the chapter 7. Can I now get it stripped with a chapter 13,Or Can I get the chapter 7 converted to a chapter 13.  

Answer
You can do a chapter 13, however, you will not receive a discharge. You can use the case to catch you up on the secured debts.  Unfortunately, the mortgages are still both secured against the title to the property, and you must pay them if you want to keep the home.