Expert: Terry Leeders - 12/6/2007

Question
I am in a Ch 13 since Oct 2005(old law), The only thing I'm paying on is my secured mobile home and the property it sits on. All unsecured debt is getting nothing. I just got laid off from work. My payments are $2010.00 a month and will end in oct 2009. Can I convert to a ch 7 and make arrangments with the mortgage co. to keep paying them my original note? In Arizona we have a homestead exemption of $150,000 and my currant equity is about $70,000 and my balance due to the bank is about $42,000. Or will my trustee try to sell my home to satisfy the unsecured debt that is receiving nothing in my Ch 13?

Answer
You should meet with your attorney about possibly converting.  You should also confirm that the lender will work with you to bring the note current.  If the exemption is enough to cover the equity in the homestead, a conversion might be wise.  Talk to your lawyer to confirm that the unsecured debt would be discharged and that you otherwise qualify for a conversion.