Some local attorneys tell their clients to pay for their houses through their Chapter 13 plans rather than directly, even when the house payments are not in default. Chapter 13 debtors have the option to pay their house notes themselves and not through the bankruptcy court. The reason an attorney doesn’t recommend direct payment may be because the attorney can charge a higher fee if the house is in the plan.
One of the things I discuss with potential bankruptcy clients is what will happen if they choose not to file a bankruptcy petition. I believe that bankruptcy should be a last resort. I tell about half of the people that I talk to that they don’t need to file for bankruptcy. I suspect that other bankruptcy attorneys don’t discourage anyone from filing.
Test post here.