Expert: Terry Leeders - 8/9/2007

Question
My husband and I filed chapter 13 a little over 3 years ago in Illinois.  I recently became unemployed and our lawyer requested a temporary payment to cover our mortgage only.  In September, our payments will go up almost $1,000.00.  We are not going to be able to afford this payment.  I have spoken with our mortgage company who will try to work out a repayment plan or loan modification but only after the chapter 13 is dismissed.  I need to know how to go about requesting a dismissal.  I do not want to wait for the trustees to dismiss our case as I have been advised that it would look better on our part if we request the dismissal.  We do not want to lose our home as we have paid over $30,000.00 to the trustees towards our mortgage (which has not brought our principal down much as most of each payment has gone towards interest).  Can you please help me?

Answer
You can do it two ways.
Your attorney can bring a motion to voluntarily dismiss the case.  This can cause issues as you will have to make arrangements with all other creditors...car notes, etc.

Or, if you stop paying the trustee, they will bring a motion to dismiss once you are in default.

You need to talk to your attorney,as each method has consequences that you need to be aware of when making your decision.