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    Job change, earn less, 13 to 7?

    I tried to search for this, but these forum searches aren't the greatest. Sorry if this has been answered...
    I had $42k unsecured debt and a $13k car loan, plus my mortgage. Payments, after promo rates went up & default rates went up, were more than I was bringing home. I tried to sell the car, no luck, and tried to refi the house. I have only been in the house for 4 years and don't have much equity and they said my debt to income ratio was too high to refi. Ha. So much for the magic of the home equity loan companies!
    I really wanted to file a 7, but I made more than the mean income (but only by a few thousand) so my only choice was a 13 or keep trying to make ends meet and eventually get in trouble.
    I filed 13 mid November 2007. I was happy about the arrangement at first. My trustee payment included my car and unsecureds, but the mortgage was left out of it. The payment was about $400 less a month than I had been paying to my creditors.
    So far so good...had my meeting of creditors and all was well. I made the full payments via wage garnishment for December and January.
    My job had been awful and things came to a head one day and I had to quit before I either had a heart attack or ended up on the roof with a high powered rifle. I gave two weeks notice without having another job lined up. I was only out of work for 1 1/2 weeks...got lucky there. However, I am bringing home about $850 a month less with my new job.
    My confirmation was scheduled for mid Feb but adjourned because of my job change and the need for an ammended schedule. The ammended schedule that my lawyer proposes cuts my trutee payment to about half of what I paid in Dec and Jan. However, being out of work for a short time left me short for the trustee payment for Feb.
    When I figured out a real-life take home pay vs. expenses budget, I came up negative for Feb, even without making the trustee payment. When I figure a budget for March, my "disposable income" would be less than half of my proposed trustee payment.
    I have e-mailed the budgets I figured out to my lawyer but haven't gotten a response. I suggested that we let the car go or try to convert to a chapter 7. If the car gets repo'd, will the trustee still want the same payment amount and more of the payment to go to unsecureds?
    How about the possibility of a 7? Honestly, I am coming up with like $60 a month "disposable income".
    When I disclosed assets etc for the 13, I didn't have anything valued over $600 nor had I made any major purchases in the last 90 days on credit. If I go to a 7 are they going to repo my 8 year old 27" tube TV that's not worth $50 in todays market? What about the stereo I've had for 16 years? How about the house at this point? I don't really care about the car, but will they take that too?
    Side note...got my lawyer's billing statement the other day. They charged me $15 because they took a phone call from my auto lender! Holy s!
    Any input would be appreciated.
    Last edited by rickisbroke; 02-13-2008, 09:35 PM.
    Filed Chapter 7 4/29/08
    341 Survived 5/27/08
    Discharged 8/19/08
    Case Closed 9/08/08

    #2
    Can you convert to a 7?

    (I don't know anything, I just read that most people who do 13's eventually convert to 7, you sound like you are in that category.)

    How hard would it be? Isn't the conversion fee just a few hundred rather than going through the entire cost again? Like I say, I'm new at this, and don't know much.
    Not all those who wander are lost....

    --J. R. R. Tolkien

    Comment


      #3
      If I understand the letter my lawyer just sent me, he can try to switch me to a 7.
      My 13 will be dismissed when I stop making payments. However, I only made a couple payments which will only cover half of what I owe the lawyer from the work he has done so far on my 13. I owe him $1400 then he will bill me hourly for the work on the 7.
      I hate to stiff him, but I might have a different lawyer work on my chapter 7 case. Somebody lower priced, and I can't exactly pay my lawer the $1400 I owe him.
      This could get interesting...
      Filed Chapter 7 4/29/08
      341 Survived 5/27/08
      Discharged 8/19/08
      Case Closed 9/08/08

      Comment


        #4
        I contacted a different lawyer about filing Chapter 7 for me. He said he needs permission from my current lawyer to start working with me. Well, my lawyer hasn't responded to me since early February. They filed a motion to be able to get their pay from the two trustee payments that I made, which the judge approved.
        My confirmation is March 12 and I think the case will get dismissed because I haven't paid since January.
        From what I understand, I can file Chapter 7 right away in this situation. I hope that's right.
        I want to know if anybody else has been in this situation and what to expect?
        What are my rights about working with another lawyer?
        Filed Chapter 7 4/29/08
        341 Survived 5/27/08
        Discharged 8/19/08
        Case Closed 9/08/08

        Comment


          #5
          You can covert if you qualify for a chapter 7. I did my conversion myself, but I was old law, which didn't require so many hoops.

          To get another attorney, your current attorney would have to withdraw as counsel, formally with the court.
          Filed CH7 - 10/13/05;
          341 Meetings: 11/28/05, 3/20/06, 12/4/07 (3d time's a charm!)
          Converted: 2/15/06 (to CH13), 10/15/07 (Back to CH7)
          DISCHARGED: 2/15/08

          Comment


            #6
            Oh, I am sure I qualify now. No problem there.
            What do I do if my lawyer won't respond to me at all? How do I get him to withdraw as counsel? Can't I just fire him? This is stupid.
            Filed Chapter 7 4/29/08
            341 Survived 5/27/08
            Discharged 8/19/08
            Case Closed 9/08/08

            Comment


              #7
              I had that problem, too. I made an appointment with her in the office, and told her face-to-face. She thn filed a Notice of Substitution of counsel, which substituted me for her, as in, we were pro se from then on. We even did the motion to convert ourselves.

              If you can't get him on the phone, can you make an appointment or just walk in?
              Filed CH7 - 10/13/05;
              341 Meetings: 11/28/05, 3/20/06, 12/4/07 (3d time's a charm!)
              Converted: 2/15/06 (to CH13), 10/15/07 (Back to CH7)
              DISCHARGED: 2/15/08

              Comment


                #8
                Thanks. I sent one last e-mail to see what happens.
                If I don't get a response, I am going in!
                Filed Chapter 7 4/29/08
                341 Survived 5/27/08
                Discharged 8/19/08
                Case Closed 9/08/08

                Comment


                  #9
                  I was able to convert from a 13 to a 7. I had a lawyer. My 13 was first going to cost me $3000 ($1000 to be paid back through ch13). After the 341 meeting and a round in court. I quit one job, and wahhhlaaa, I was able to convert. My lawyer didn't charge me any extra and it only cost like $15 for the conversion. AND the $1000 I owed through the plan was dropped, I didn't owe him another cent!

                  My experience: Catchmeifyoucan
                  July 2006: Filed Ch13 :blink:
                  Oct 2006: Converted to Ch7 :clapping:
                  Jan 2007: DISCHARGED :clapping:
                  Nov 2007: CLOSED :yahoo::yahoo::yahoo:

                  Comment


                    #10
                    Thought I would update this...
                    My Chapter 13 lawyer was unresponsive, so I hired a different one to file Chapter 7.
                    We are including the money I owed the Chap 13 lawyer in the 7. Sorry, dude..answer your phone/e-mail!
                    Anyhow, filed Chap 7 April 29. 341 June 3.
                    Wish me luck...
                    Filed Chapter 7 4/29/08
                    341 Survived 5/27/08
                    Discharged 8/19/08
                    Case Closed 9/08/08

                    Comment


                      #11
                      GOOD LUCK, should be a piece of cake, just watch your income and be ready for any extra paperwork the new trustee might ask for! Luck be my way, I didn't have to provide anything more.

                      Catchmeifyoucan
                      July 2006: Filed Ch13 :blink:
                      Oct 2006: Converted to Ch7 :clapping:
                      Jan 2007: DISCHARGED :clapping:
                      Nov 2007: CLOSED :yahoo::yahoo::yahoo:

                      Comment


                        #12
                        Thanks! 341 moved to May 27. The sooner, the better.
                        I'm ready to start living again.
                        Filed Chapter 7 4/29/08
                        341 Survived 5/27/08
                        Discharged 8/19/08
                        Case Closed 9/08/08

                        Comment

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