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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2815
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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I just asked this question - Hi, my wife and I filed for

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I just asked this question -

Hi, my wife and I filed for Chapter 13 a couple of years ago (a little more than). Our mortgage is outside the case and is current. I lost my job about 5 months ago and realistically it will be unlikely that I can find a similar job at my age and circumstances. I have not been able to find any job in the interim and stopped making payments. The Trustee has filed a motion to dismiss our case for non-payment. Is conversion to Chapter 7 possible since our mutual income is now about 25% of what it was at the time of the Chapter 13 filing, and will likely not rise above 50% of that figure given all the circumstances around my employment. There are no secured creditors left. Would we be able to keep our house?

But I failed to ask the issue we are most concerned about - is keeping our house (the mortgage is outside our Chapter 13 case and has always been current) a possibility? All secured creditors in the estate have been paid (except the house).
Yes, you can keep your home, if you stay current and there is no equity in the home. When you convert, the ch7 trustee liquidates assets and pays creditors. You have a state exemption for homestead, $5,000 for the homestead of an individual $7,500 if property is jointly owned. If no equity, then conversion would be ok and you can keep your home by signing a reaffirmation agreement.
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