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    #1

    convert or not?

    My husband and I have been in Chapter 13 for nearly 3 years and we have 2 years to go. During the 2 years, we let a truck go back and are thinking about letting another go back as well( having trouble making payments). That would leave only back taxes and our house payment left in plan. Should we try to convert 13 to 7 or just stay in 13? If we do convert, what is that process like? Is it hard to do?

    Thanks for the help
    Tags: None
    #2
    I am in the process of converting right now, I don't think it's difficult but am still scared about everything. I was going to try and do it without a laywer but decided against it, I've heard it's harder to convert than if you originally filed a Chapter 7. You have to prove no disposable income. As for converting, my mortage company told us that we had to be current before they would reaffirm/reinstate the mortgage. This meant all arrears that would've been in the plan, escrow, attorney fees, everything. I ended up having to come up with $3,012.00 to reinstate my mortage so I wouldn't loose it when converting, and I only had $645.97 in arrears (1 payment). The escrow balance became negative because they never redid it during my plan. You may want to check into this if you still want to keep your house. From all the research I've done, a mortgage company won't reinstate/reaffirm unless you are current.

    Comment

      #3
      I can't say if you should convert to a 7 or not, but definatley research the impact of doing so would have on your home. You're definately going to want to be current on your mortgage, and factor in any applicable fees associated with converting to a Chp7. In addition to the debt related fees, consider all the "up front" conversion costs too. You guys filed your Chp 13 using an attorney correct? Contact him/her ASAP if your serious about moving forward with a conversion.

      -Todd
      The information provided is not, and should not be considered legal advice. All information provided is only informational and should be verified by a law practioner whenever possible. When confronted with legal issues contact an experienced attorney in your state who specializes in the area of law most directly called into question by your particular situation.

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        #4
        Yes, we used a lawyer. Is it hard to convert? Do we have to have bank statements and everything else? Is it even worth the trouble? We've let one vehicle go back since we've been in Chapter 13. Will we be able to let the other go back as well?

        Thanks

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          #5
          Originally posted by MKW
          Yes, we used a lawyer. Is it hard to convert? Do we have to have bank statements and everything else? Is it even worth the trouble? We've let one vehicle go back since we've been in Chapter 13. Will we be able to let the other go back as well?

          Thanks
          Nope it isn't hard to convert! Just be sure your Chp7 petition reflects that you're dead broke - and keep you're fingers crossed that your petition is accepted. You're attorney will know what all needs to be demonstrated to petition for a convert to a Chp7.

          Good Luck!
          The information provided is not, and should not be considered legal advice. All information provided is only informational and should be verified by a law practioner whenever possible. When confronted with legal issues contact an experienced attorney in your state who specializes in the area of law most directly called into question by your particular situation.

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            #6
            do a chapter 7 still give you protection against foreclosures; automatic stay

            [email protected]

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