Chapter 13 questions

[Kingxray]

Hi all,

We filed for chpt 7 in Oct and had our 341 12/18. I checked Pacer today only to find that the trustee filed a "presumption of abuse" and is asking to either dismiss our 7 or convert to 13. I know nothing about 13. Can anyone tell me or direct me to info on chapter 13? Can't speak to our lawyer until after the New Year. Any imput would be great, thanks.

[justbroke]

Since I don't want to send you to a law office's site and perhaps somehow encourage you to listen to them specifically...

Here's what the U.S. Bankruptcy Courts says about Chapter 13...

http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter13.html

[Kingxray]

Thanks. I read it and it does not sound too good. You can't obtain debt for 5 years? What if I need a car? Either way I think we will fight the presumption of abuse but we haven't talked to our lawyer yet. Either way we are not in a good place. Thanks again.

[justbroke]

Thanks. I read it and it does not sound too good. You can't obtain debt for 5 years? What if I need a car? Either way I think we will fight the presumption of abuse but we haven't talked to our lawyer yet. Either way we are not in a good place. Thanks again.

You can't obtain (or acquire) new debt... without permission of the Court and Trustee. If a true emergency arises, like a car... even a new home... it is possible to acquire new debt.

The key is, that they are trying to make sure that you don't go into serious debt again -- and trouble -- because they are there to keep you out of it.

You should still fight your Chapter 7 eligibility. Chapter 13 may not be a walk in the park, but it does have some discharge capability that even a Chapter 7 doesn't have.