Expert: Terry Leeders - 6/19/2008

Question
I filed a chapter 13 with the intent of being able to make my payments. My income has fallen and I ave fallen behind on my mortgage payments. they have filed a petition to lift the automatic stay. What are my options? Can I convert to a chapter 7 and get the other debts discharged? I only filed the Ch 13 to save my home. I also owe more than the house is worth. I live in California

Answer
You have several options.
1. you can convert the case to Chapter 7, and wipe out the debt..if you want to keep the home, you would need to get caught up though.
2. You can ask for a continuance to get the funds together.
3. You can negotiate a repayment plan to cure the arrears. This is called a default repay order, where you would catch up over a period of time, but if you default, then the automatic stay will automatically modify.
Speak with your lawyer to discuss the different options to get you the best advise for your chapter 13 plan.