The debtor had been working with his mortgage company to set up a loan modification. But the debtor gave up after several months of getting nowhere with the mortgage company and finally chose to file Chapter 13 to avoid a foreclosure. The day after filing, the mortgage company sent debtor a notice that he was eligible for loan modification and put him on a Trial Payment Plan. The debtor would prefer to resolve the mortgage default through the loan modification, but still wants to covert to Chapter 7 to discharge his unsecured debts. The fear the debtor has is that by converting out of Chapter 13, he gives up some power over the foreclosure process, and that the mortgage company could pull the plug on the loan modification after the Trial Payment Plan. Is an option here to convert to Chapter 7, obtain the discharge, then file another Chapter 13 if the mortgage company starts up the foreclosure process here (the only fear in this is that the
mortgage company claims they do not have to give notice to start the foreclosure process - so the sheriff's sale might take place before a new Chapter 13 could be filed)? Or what would be a good option here?
If the debtor converts like this, would the attorney still get the full legal fee for doing a Chapter 13 filing? Or would he be required to refund a portion of the Chapter 13 legal fee since the Chapter 13 Plan was only partially carried out?
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