Can We Convert From Chap. 13 To Chap. 7-Please Help

Question:
We are in month 11 of paying on our Chapter 13. Everything looks so good on paper, but in reality it is horrible. My husband's income looks fantastic but it is unreliable. I need at least one surgery where our costs would come to about $7000-10000, our prescription costs are through the roof. But worst of all, we are carrying two mortgages from what we did not know at the time (late 1998) were predatory lenders. They are at rates so high (and which were unjustifiable at the time--we were just desperate, dumb consumers). These loans would not be legal today. We cannot sell the house because the loans are for about $30000 more then its worth. The house is falling apart and we can't afford to fix it. And if we finish the Chap. 13, we will be left with two horrible loans that soak up money that should be going towards life and health insurance, retirement etc. IF we could sell the property after the discharge, we would be stuck with having to install a septic system, a new heater, new electric, new plumbing (I have to wash my hair using a pitcher of water--there is not one working shower in the house), which means we'd probably never be able to get enough to even pay off the mortgages until about 10 more years (and we are both in our fifties). Our bank balance hovers around the $2000 mark no matter what we do. My husband is working himself so hard I fear that his health will be very adversely affected and he is at the breaking point himself. I cannot bear this living from week to week, wondering if that toothache is going to explode into a huge surgical procedure (one already has), if a car is going to break down or the heater stop working. Between my physical problems and the bankruptcy I have already been treated for suicidal attempts and cannot bear this much longer. My fear: They will look at my husband's income (he just switched agencies and they pay a lot more) and say we can't do the Chapter 13. When we first went to file, every lawyer said do a Chapter 7 but we had absolutely no place to go to live and foolishly went with the 13. Also that "we want to do the right thing". Now what I know about these credit card companies and some mortgage companies I have completely changed my opinion. It's like paying the crooks who robbed you and keep robbing you. Please, anyone, do you think we can still convert if we find a suitable place to live? We want to save enough money for a downpayment on a house from a REAL lender and not one of these crooks. We also want to move out of state for my health. I apologize for the long post but sometimes background is needed to present the full picture. Thanks in advance.

Answer:
You have the absolute right to convert your case from a 13 to a 7. Speak with your attorney about how to do this and what the implications and timing will be.





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