I am thinking about converting from CH7

[TomBrady]

I am thinking about converting from CH7 to 13 in order to protect my tax refund which is 4700 plus the Bush tax refund which would be another 2400 (more than 7000). Plus I could really benefit from doing a cramdown on my vehicle loan Kelly Blue Book lists fair market value at 7500 and I owe almost 12,000. What would be the "minimum" that they would let you get away with paying each month? Could it be as little as 50 even a 100 bucks a month and I would still come out ahead, plus I would not have to give up all the money at once, it would kind of be like a no intrest loan. Please give me any thoughts you may have on this as I have only read the small part in the about 13 in the Nolo CH7 book. I just really hate to give up more than 7,000 we need that money very badly.

Thank you for any responses...

EDIT:

I live in Colorado where we do not have a wild card exemption, can not use federal exemptions and can not use the unused portion of the homestead exemption (I dont think however I am still 100% certian on this one).

[CATCHMEIFYOUCAN]

Hmmm, assuming you already filed? I was in a Ch13 due to 2 full time jobs. The only way I was able to convert was by quitting one job. You really have to have a good reason to convert (not just to save your tax refund). IF you haven't filed at all, than get your tax refund and wait awhile before you file. Save all your receipts you do with that refund (in case you need proof if you end up spending it), even use some of it to payoff for the lawyer (if you are not filing pro-se).

Best of Luck, Catchmeifyoucan

[epiphany]

I am thinking about converting from CH7 to 13 in order to protect my tax refund which is 4700 plus the Bush tax refund which would be another 2400 (more than 7000). Plus I could really benefit from doing a cramdown on my vehicle loan Kelly Blue Book lists fair market value at 7500 and I owe almost 12,000. What would be the "minimum" that they would let you get away with paying each month? Could it be as little as 50 even a 100 bucks a month and I would still come out ahead, plus I would not have to give up all the money at once, it would kind of be like a no intrest loan. Please give me any thoughts you may have on this as I have only read the small part in the about 13 in the Nolo CH7 book. I just really hate to give up more than 7,000 we need that money very badly.

Thank you for any responses...

EDIT:

I live in Colorado where we do not have a wild card exemption, can not use federal exemptions and can not use the unused portion of the homestead exemption (I dont think however I am still 100% certian on this one).

Wouldn't they be more likely to take your tax refund/rebate in a 13 than in a 7? You talk about converting....Have you filed yet?

In any case, you don't have control over which chapter you end up with. You can try one or the other, but the court will decide in the end depending upon your circumstances. Without knowing your assets and liabilites, I don't think anyone can really answer your question. You need to speak to a lawyer.

EP

[coma]

Actually, the law says somewhere (and I'd have to look it up) that a debtor has the right to convert to a CH 13 as long as it is not in bad faith.

[Flamingo]

I am thinking about converting from CH7 to 13 in order to protect my tax refund which is 4700 plus the Bush tax refund which would be another 2400 (more than 7000). Plus I could really benefit from doing a cramdown on my vehicle loan Kelly Blue Book lists fair market value at 7500 and I owe almost 12,000. What would be the "minimum" that they would let you get away with paying each month? Could it be as little as 50 even a 100 bucks a month and I would still come out ahead, plus I would not have to give up all the money at once, it would kind of be like a no intrest loan. Please give me any thoughts you may have on this as I have only read the small part in the about 13 in the Nolo CH7 book. I just really hate to give up more than 7,000 we need that money very badly.

Thank you for any responses...

EDIT:

I live in Colorado where we do not have a wild card exemption, can not use federal exemptions and can not use the unused portion of the homestead exemption (I dont think however I am still 100% certian on this one).

What another poster stated about you keeping the rebates and refunds if you switch to a Chapter 13 is right on the mark. If you switch they can be taken in a Chapter 13 just as quick as in your 7. Before you consider doing anything, talk to your attorney to make the right decision.

[Bandit]

It is possible for the trustee to want to take both returns you mentioned in either 7 or 13. I see the OP very clear but there is another side to tax returns. In a 7 that would be seen as an asset & they would/could just take it, period. IN a 13 it is the same except maybe they could let you use it toward your car like you are saying.

Tax returns are 'iffy' and that is one of the first things I learned is not to depend on it while going thru this. (so spend it before you file & spend it wisely, so they cannot get it)

If you are talking about a minimum on your car, whatever you owe in a monthly payment now is what that portion will be. That part wont change. Say, you owe 300 a month for the car, it will stay 300, not go down to 50.00.

Kelly Blue Book lists fair market value at 7500 and I owe almost 12,000

In a Ch 7 they could even take your car but in that situation it would be better because the actual value is not there for what you owe. You get 5000(?) in equity on a car & that is double what other states give. Not bad just as long as you stay current.

I live in Colorado where we do not have a wild card exemption, can not use federal exemptions and can not use the unused portion of the homestead exemption (I dont think however I am still 100% certian on this one).

Check out several places because some attorneys do not update & exemption amounts do change. BUt from what I saw in the federal exemptions for Colorado there was no wild card either but the personal property was a nice amount. Car was 3,000 at one site with 6000 for disabled or elderly & a 5000 exemption at another site. Double check those figures.

I hope in some way you will get to do what you are planning & it works out to where you get to use it to get a little bit ahead.