To Continue Bankruptcy or Not

[mrs.florida]

Due to health problems, I failed behind in my mtg payments. I panick when I received a summons, from the Court about forclosure proceedings. Immediately I contacted an attorney and he filed Chapter 13 in October/2007. I agreed to a repament plan with the attorney. It is now May/08, and my Chapter 13 has not been confirmed because of various objections, etc. M attorney called me the other day to sa he had to resubmit the plan with an increase of $500; and I will have to pay the additional back payments immediately. I told him I did not have the additional money, and it was impossible to pay, because I don't even make that kind of money. He told me if I could not fund the plan as he submitted, the trustee will dismiss my case and Citi Residential will proceed with the forclosure. I sent a letter to the Trusttee, and went to my scheduled confirmation meeting in an attempt to discuss this matter, however The trustee continued my case and would not speak to me directly. She suggested I speak with my attorney. I have asked my attorney to send Citi Resi. a letter, authorizing them to speak with me, and they have requesting hardship letter, financial statement, bank statements and pay statements. I faxed this information three times and have not heard from them. I call every other day, and is told that my information has not been uploaded. Do you think I can convert my Chapter 13 to Chapter 7, and make some type of agreement with Citi to pay the my current mortgage and arrears. I am sooooooo affaid I will lose my home just waiting for someone to contact me.

[Moe Bedard]

Hi mrs.florida,

Welcome to the forum and thank you for joining............

The problem you are going to run into is that with a Chapter 13 BK the lender will not modify your loan while you are in the plan........
In a Chapter 7 BK you will have to wait until it is fully discharged to apply for a modification........

This is a decision that only you can make.........however, if you want to see if you can get started on a modification you would need to put your hardship letter into the body of an email and send it to each of the emails below........you should receive a response fairly quickly and they will let you know if you can apply for modification..........Citi has the ability to put off a foreclosure while you are going through the modification process without having to file a BK.......

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