Converting Case From 7 to 13....

[UpsideDownMI]

If a debtor converts their case from a 7 to a 13 (by choice or force), does the current monthly income at the time of filing the 7 stand or must it be recalculated at the time of converting to a 13? Just curious, as in my case this could make a difference between a 3 and 5 year plan. Thanks.

[justbroke]

It's all based on the day of filing. So, if you're converting, technically, it's what you had on your schedules on the day you filed.

Okay, now that I wrote that, things may change. You may need to update your form, as now you'll have to file a B22C with a Chapter 13 (instead of a B22A). Then there are some other things, like whether you are above or below median income.

Because of the income issue, you may have to dismiss a Chapter 7, rather than convert, before filing a new Chapter 13. If your income is taken into account as of the filing of the Chapter 7, it may not "technically" be enough to fund a Chapter 13. The key will be in what you looked like (financially) on the day you filed your Chapter 7 (and the 6 months preceding that filing date).

I think the biggest problem will be proving, that you can afford to be in a Chapter 13 (if you weren't pushed there by the Trustee).

[UpsideDownMI]

Thanks for the reply. Right now I am more concerned with being forced into a 13 than anything else. If I had to be file the B22C would I use the 6 month income from the time of filing or from conversion?

[EricaCallaha]

We were told it was on the day of filing.

Good luck.

[Vanda]

Conversion 7 to 13

I am pretty sure the Trustee will want to move me to a Chapter 13. After the 341 they made more document requests and although no creditors have objected I think the Trustee objects. If that happens would it still be the same trustee, anyone know? (Florida) I am over median income and they are objecting to my exceptions. If they force you into a Chapter 13, how does it happen? If I decide not to keep my house if I have to file 13, so I have to start all over again with income documentation, etc.? Just want this to be over with!

[floridian]

how much over the median are you?

[Vanda]

Conversion 7 to 13

I am a lot over median, I think median for a family of 2 is $51,000, I think my 6 months' income would have ended up as around $62,000. I was working an extra shift that got cut.

[EricaCallaha]

Yikes. I don't know about Florida, but in Utah there are Chapter 7 panel trustees and then Chapter 13 trustees. Two separate kinds of people. I would imagine that it would be like this everywhere.

Good luck. I hope it works out in your favor.

[Vanda]

Does anyone know if in Florida you keep the same Trustee when you convert from a 7 to a 13? My Trustee knows people I work for and they in turn go out to dinner together and it makes me uncomfortable. I don't want my boss to know, I know that there would be strong disapproval.
Also does anyone have other information on how it works if they do not accept a Chapter 7 (in Florida)? My attorney is not responsive, he already got paid after all.

[StartingOver08]

I am not sure, but it looks like the Ch 7 and the Ch 13 Trustees are different people. Check out this link: http://www.bestcase.com/trustees13.htm

[Vanda]

You are right, Startingover, that means I would have a different Trustee, but is it possible that there is only one? I guess with a ton of paralegals.... At least I don't know the Chapter 13 Trustee nor do I think there is a work connection. Thanks for the link!