Converting from 13 to 7 - or dismiss / file new 7

[PoorGrammyinBK7]

Does anyone know the process differences of these two possibilities?

I ask, because our attorney said we could start out with a 13, and dismiss or stop paying (and the trustee would dismiss) and then file a new Chapter 7 (by then we would be eligible)

But I have seen comments about "converting" to a 7 and it does seem less expensive.

Also, if you were to do this and, say unexpected medical expenses or something like that comes up during the 13 - or you lose your job - can you be forced into a 7? And if so, could you put the new medical (or whatever) debts in the new chapter 7?

Also, I just read on another thread that if you stop paying or dismiss (because you lost your job,etc) in a 13, the creditors will go back and add interest and fines, fees, etc --- can these new fees/interest be added to the new Chapter 7 if filed new? if converted from 13?

I would appreciate any help you could give me on this...Need to decide sooooon. Thanks!!!

[rrockinggramma]

if you could convert, I would do that because it keeps the auto stay in place. But you can add ALL new debt acquired since your chapter 13 filing to your "new" chapter 7. Would mean another 341 etc but if you qualify for a chapter 7, then convert and go for it. GL

[PoorGrammyinBK7]

so converting would mean no new 341 and no new 60 day objection period?

[Cali]

I thought if you converted you had a new 341.

[PoorGrammyinBK7]

Maybe you do - that was what I understood from rrockinggrammy but may not be what she meant.

I really need to know the differences in the two processes:

Converting to a 7 (or being forced to convert)

vs

Dismissing a 13 and filing a new 7.


One pro from converting seems to be that the automatic stay would still be there and is limited if we dismiss and file a new 7 - is that right?

[rrockinggramma]

if you convert your chapter 7 would be like a "new" case, new case number, new 341, and yes new waiting period. But 60 days is a lot less than 60 months.

[biotechsolution]

if you dismiss your 13 and refile a 7 fairly quickly, say within a month. you won't have any trouble with the automatic staying in effect. all you have to do is file a motion to have the automatic stay extend past 30 days

[rrockinggramma]

not saying this is true everywhere but in the Eastern District of Michigan when I read the court opinions I have yet to see a trustee say yes to the 30 day extension. Refiled chapter 13's or 7's in my district it is deny, deny, deny