Chapter 13 Bankruptcy Is Causing Me So Much Stress

[asmith1818]

I forgot all about the prior conversion and the Rule 2004 Examination. You won't be able to convert "by notice" back to Chapter 7. It will almost definitely require a hearing for your conversion. The original Chapter 7 panel Trustee or the UST could ask about "bad faith" issues that may have been in the case prior to conversion.

I wish your attorney was stronger in the original conversion, but I could be wrong. Normally, a debtor making $3,300/month wouldn't be sending $2,000/month to the Chapter 13 Trustee. This is usually a case where the "best interest of creditor's test" (or the Chapter 7 liquidation test) showed that the creditors would have received $120K over 60 months ($2,000/month) -- or $72K over 36 months -- had you filed a Chapter 7. I just don't see it or I don't want to believe it. (I do see that you capitulated due to the issues found during the Rule 2004 Exam.)

When your attorney and you sit down, you'll have to look at dismissal and refile versus a straight conversion. I think conversion may be a little more problematic, but it's possible. I just don't see how anyone who takes home $2,600/month (after taxes) is giving the Chapter 13 Trustee $2,000/month. It makes me sad and outraged that it was allowed by your attorney and the UST/Trustee. I'm not disgusted with them per se, but annoyed that they allowed that to happen.

Let's see what your attorney says about this situation. It's unlivable and Chapter 13s were never meant to be a punishment.

thanks again for your valuable information. I had done some searching before and did come across the hearing for the conversion information but forgot about that. I think that is what originally made me try and stick this out. I just cant continue on this way anymore. So i will have to really think about the dismissal and then refilling. Refiling after a dismissal like starting over in the case? So i will have to shell out more money to the attorney for the ch.7, probably the same cost from when I started with the chapter 7? I will update once i meet with the attorney. I am just so cash poor and have exhausted my parents friends and siblings with borrowing money, I cant go back to them.

I may have to be forced with accepting that the case gets dismissed, I lose my automatic stay and just get sued left and right until I can pony up the money for a new bankruptcy case.

[justbroke]

Yes, a dismissal and refile requires a new petition. Depending on your attorney they may or may not charge their "full" fee since 99% of your information will already be in their system.

[asmith1818]

Yes, a dismissal and refile requires a new petition. Depending on your attorney they may or may not charge their "full" fee since 99% of your information will already be in their system.

The attorney got back to me today. He said before I schedule and appointment to come I send him payroll and expenses record. I sent him the information from the past year showing how I am in the negative each month. He was very supportive sounding on the phone and nice. Now I shall wait, I will update once I hear more. Thanks!

[shipo]

asmith1818, congratulations, that sounds like a promising start.

[sophieanne]

asmith1818 - That does sound a promising start as shipo wrote. Good luck and let us know how it goes.

[asmith1818]

asmith1818, congratulations, that sounds like a promising start.

Thank you, my fingers are crossed and I'm praying for something to happen that works for me.

[asmith1818]

asmith1818 - That does sound a promising start as shipo wrote. Good luck and let us know how it goes.

Thank you very much! I will definitely update once I hear back.

[asmith1818]

Hi all, hope everyone is staying safe! So i have followed up with the attorney several times and emailed. I did wait about a week before contacting home. But now its going on a month and no one is getting back. I understand with the uncertain times and the horrible situation we are facing, I am not demanding immediate help but quick-ish. I am not a month behind on my payment. I am going to try again this week to see if anyone has had the time to look at the documents I sent.