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Ask Terry L. Your Own Question
Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2900
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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I will need to file my completed Chapter 13 by Jan 11. I also

Resolved Question:

I will need to file my completed Chapter 13 by Jan 11. I also have a NJ
foreclosure court mediation session scheduled on Feb 15 where I will
negotiate for a loan modification. Do I loose a lot of leverage if my
chapter 13 is dismissed prior to this mediation session?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 6 years ago.

Terry L. :

Hi and thank you for your question. In the future, you can request me to answer any further questions.

Terry L. :

The chapter 13 can cure the mortgage arrears for you.

Terry L. :

You are free to continue to pursue a loan modification.

Terry L. :

Once you get the terms worked out, you need to bring a motion in the bankruptcy court for it's approval.

Terry L. :

once approved, you can give the lender the order stating such so they can finalize the modification.

Terry L. :

The mediation would be cancelled as a result of the chapter 13 filing.

Terry L. :

Any negotiation for loan modification can be made with your lender.

Terry L. :

If your case is dismissed, then the foreclosure may continue. It would be up to the lender to decide if you are eligible for a loan modification, and the dismissal really shouldn't impact that

Terry L. :

Thanks for your question, good luck

Customer :

NJ Foreclosure Mediation is not cancelled because of a Chapter 13 filing. Mediation continues

Customer :

where I would really like to get a modification outside of a Chapter 13. All our financial have

Customer :

already been given to the Bank so trying to guage if I loose a lot of leverage outside a Chap 13

Terry L. :

The foreclosure must stop if the automatic stay is in place. The lender can take no further action. If your case is active and the stay is in place, bring your case info to the hearing, and it will be dismissed. (your attorney should send this over now though). Talk to your lawyer to confirm the foreclosure is stopped. You need to work with the lender to see what available programs are available, and then once approved bring the motion in the Ch13 to approve it.

Terry L. :

You lose your protection once the stay is modified or case dismissed. You should work on the 13 to get it confirmed. Then once you start making regular mortgage payments, the lender may be more willing to work with you. This is a case by case basis, and can vary lender to lender, so I cannot say one way or another if your chances will improve by getting out of the ch13. I would stay in, to keep the protection the case offers, but discuss the matter with your lawyer to decide which is best.

Terry L. :

Thanks for your question, good luck.

Customer :

NJ Foreclosure Mediation halts foreclosure proceedings until some conclusion is reached so I can refile a Chap 13 again

Terry L. :

Oh, you have not filed the case yet. Then yes, it should continue until you file. thanks, XXXXX XXXXX

Customer :

I filed an emergency Chapter 13 to halt a foreclosure trial and got an extension to file all my schedules until jan 11 so due to the fact that I have a NJ court approved mediation scheduled on on Feb 15, do you think it is possible that the Trustee will allow another extension until after this court approved mediation is finished?

Customer :

Appreciate your reply

Terry L. :

Highly unlikely. You need to show cause as to why you could not file the schedules in the time alloted. And hopes that they will push it just because of the mediation is highly unlikely. I would have the documents ready to file.

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