Met with my attorney today....dismissing my 13...filing chapter 7.

[amreynolds]

Wow...quite the turn of events. Went to talk with my attorney to re do the finances, as I am not getting married in the foreseeable future and no need to include the income of my fiancé.
Turns out, even though I make over the median, I DO qualify for a chapter 7 now.....have negative disposable income!

Attorney motioned to dismiss my 13 today (I was not even confirmed yet), will be getting what I paid into the plan so far back (which will be applied to his fees of course)...and we start anew with a new filing.
I will go through a new 341 (but NOT with that Trustee from the 13 thank GOD...its one that just does the 7's)...and should be done around 65 days...we are filing 7/25 (as I need to get some money to pay filing costs etc.
Call me crazy...but I am jumping for joy! BK stinks no matter what, but to not be under that other Trustee's rule is like a new lease on life. I have NO assets for the new Trustee to want, so my attorney feels this was really great news.
The only bad thing, is the ex's property settlement debt is not discharged, so I do have to pay his credit card off. I would much rather do that than
be indentured to that Trustee for 5 years. I know now also, the mortgage company can start to harass the ex....but he has nothing and the payments are now 3 months behind....so my understanding is once the 7 is discharged, the mortgage company can start to foreclose whenever after that.
I feel so much better.

[LadyInTheRed]

That's good news! But, I have a question: Why is your attorney recommending dismissing the Chap 13 and filing a new case instead of converting to Chap 7? If you dismiss, you will have two bankruptcies on your credit report. While your credit reports should never be a deciding factor in bankruptcy, it is something to consider if there is not a good reason to dismiss.

[amreynolds]

I honestly don't know. I thought a conversion would be better. He is not even taking his cut for the 13. I have been reading and found you can do this but it effects the stay....must file an extension of the stay. My income changed drastically and I have not been confirmed in the 13. My mind was so full while I was there that it didn't enter my mind to ask and I did not know the possible stay issues prior. My payments made to the 13 are to be returned, less what the trustee took. Maybe he is converting, but he said dismiss.... I just went with what he said, as he is the attorney. I was so glad that I didn't have to answer to that 13 trustee for 5 years that I didn't push. I see him again 7/25....but I will perhaps email him asking him his thought process. No way I could continue the 13 payments now anyway...maybe that's why.

[dmc-2008]

Congrats! 5 years is a VERY LONG Time!

how does this affect your score as far as time it is i your report? 7 and 13 report differently?

happy for you!