Hi there Mickey.
Actually, the fees sound reasonable, In Illinois, fees are approved by the court, and they have set $3500 as reasonable for the entire case.
Down to the issue. At the time of filing, if the 2nd mortgage/equity
line is wholly unsecured, your attorney can bring a motion to strip off the lien. It will then be paid at your unsecured rate. IF there is just 1 dollar for the equity to attach to though, the loan cannot be stripped off.
Since your income has dropped, you can bring a motion to modify the plan. Depending on the claims that have been filed, you may be able to lower your payment, lower the percentage repayment to the unsecured, or stretch the case to 60 months if it was shorter. Your attorney can review the facts and current situation, to see if you would be eligible to modify. You could be eligible to convert to chapter 7
as well, but the case facts will determine eligibility.
You can terminate your lawyer, and hire another if you choose, you are not forced to use them.