how much should I pay to convert 7 to 13?

[downstream]

Hello all, I'm new here, my wife and I began th BK process almost 1 year ago, didn't file until Oct of this year and the trustee dismissed our case and we are converting to a chapter 13.

Our lawyer wants to charge us the same amount for the conversion as the original chap 7, does this seem like alot to anyone else? I'm considering having a "national company" like USABK do the paperwork for the conversion. Would this be a bad idea?

Second, my wife and I are both unhappy with the prospect of a chap 13 payment plan for the next 5 years. We are worried that we will be locked into being unable to save any money or make more money for that matter. I'm in may late 30's and the prospect of not being able to consider buying a home for another 5 years stinks.

[lrprn]

Welcome to the BKForum, downstream! See my answers to your questions below in red:

Our lawyer wants to charge us the same amount for the conversion as the original chap 7, does this seem like alot to anyone else? I'm considering having a "national company" like USABK do the paperwork for the conversion. Would this be a bad idea?

From reading about conversion cases online, it does seem more typical for a lawyer who's converting a filed Ch 7 to a 13 for the same client to charge a pro-rated fee that includes some of what you paid for the original Ch 7, not charge the entire filing fee again. Hopefully others here who have gone through the experience will share what their lawyers charged them to convert from 7 to 13.

Second, my wife and I are both unhappy with the prospect of a chap 13 payment plan for the next 5 years. We are worried that we will be locked into being unable to save any money or make more money for that matter. I'm in may late 30's and the prospect of not being able to consider buying a home for another 5 years stinks.

You didn't share why you had to file Ch 7 in the first place. It may have been something or a combination of somethings that were outside of your control. But if it wasn't (which is the case for about 3/4 of us who post here), 3-5 years of Ch 13 payments is the price we 13ers pay for our fresh starts. Yes, five years is a long time, but ongoing financial troubles that go on for decades with little progress getting out of the hole stinks a LOT more!

I'm not trying to be mean or unfeeling, downstream....just being realistic about what it's like to be near bankruptcy. At some point we each have had to go through the painful process of accepting the reality of the financial holes we dug for ourselves or that were dug for us through unexpected events. If you are considering bankruptcy, then your credit record could well be under prime lending levels. The house you would buy at a higher-than-normal interest rate during the next five years could push you right into bankruptcy plus add a foreclosure besides - a disastrous one-two punch to your credit for a long time. Better to go without a house for 5 years than drag your current debt around behind you for decades and buy a house that could well push your family completely over the edge. Just some food for thought....

[CATCHMEIFYOUCAN]

Second, my wife and I are both unhappy with the prospect of a chap 13 payment plan for the next 5 years. We are worried that we will be locked into being unable to save any money or make more money for that matter. I'm in may late 30's and the prospect of not being able to consider buying a home for another 5 years stinks.

Since you already tried a Ch7 (I assume) your credit was already shot from that. So any prospects of getting into a home as far as getting a great rate, I would think minimal. If you case actually did get dismissed, than I would assume you are going to be starting new filing fees, all over again. Too bad that you didn't just try to CONVERT from Chapter 7 to 13, than I would think that would have lessoned the rate.

Good Luck, Catchmeifyoucan