Expert: Terry Leeders - 4/7/2007

Question
We filed chapt 13 in June of 2006. (unable to file Chapt 7 because we filed in 2003 or 04 can't remember exact Yr but it was not long enough). Friday our Chapt 13 was dismissed for non-payment. Our plan was paying back(100 %) all creditors within 3 Yrs. Payments were just too high-originally 2400, then we got a stay but payments were only lowered to 2080 monthly- just too much for us too realistically handle. I'm told in refiling (if that's even an option) that payments usually go up- is that true?
Besides calling the creditors directly-ofcourse our home is the one I'm most concerned with- not losing it-are there any other options?

Answer
On a refile, the payment usually goes up because debtors are further behind than when they filed previously, incurred new debt since the date of the first case, or have fallen behind on mortgage payments and have additional foreclosure attorneys fees to pay.

On a refile, you will have to show the court how this case will be more successful than the last- a 'positive' change in circumstances...ie: got a raise, etc.  Otherwise your automatic stay protection drops in 30days.

Now, you are subject to the means test, which is a large factor in determining what percentage of the debt you have to pay.  

You always can refinance the house if you have any equity.
If you want to refile, you should contact an attorney as soon as possible.
Thanks
Terry