OMG! OMG! OMG! I'm so excited...r/o/p

[aces67]

We entered into a 13 25 months ago. It's a 60 month plan. Anyway dh's job has taken some hits and his income has decreased. In February our lawyer said he *thought* we could convert. After filling out all the papers I got a letter back 2 weeks ago saying that we were not eligible. Today I finally saw him for a better explanation. He said for a family of four we had to be under $66400 for the year. In March we were at $67,100 for the year so we didn't qualify. He told me to wait it out and once our income drops below the median we can then file. He asked me to fax in dh's April paystubs. I just got through running the numbers and OMG! We are now at $65, 930 for the year!

Could it be that easy? He says we now qualify and he doesn't see a problem with pushing it through. I'm not doing a happy dance just yet though but I'm very optimistic now!

[sassiebaz]

Cool, hope it works out for ya!

[Flamingo]

Weigh out your options here...you filed Chapter 13 25 months ago and then will have a Chapter 7 showing starting this year which won't come off your credit reports until 2019. Your present Chapter 13 will be off in 4 1/2 years (2013). Plus you have paid into it for 25 months. Have you looked into modificatoin?

[aces67]

We have but all in all we will be better off to do a Ch 7 right now. Our 13 payments are low right now but they will step up and be extremely high for the last 12 months of the plan. We really don't care what it will do to our credit at this point we're just ready to be done.

[EricaCallaha]

I hope it works out for you that way that you want it. It does kind of suck that you are almost halfway and have to abandon the plan.

Good luck.

[aces67]

So I put it all on paper and if we don't convert to a 7 and stay in our current 13 we still owe $9000 over the next 35 months. Do you really think it's better to pay the $9000 even though we can't afford it rather than another negative entry on our credit report? Our home is 11 years old and we have no plans on ever selling it. We bought it when we had good credit and we have a low interest rate on it. My vehicle was bought right before we filed and we bought the extended warranty so it should be good for another 5 years.


IDK. It just seems cheaper and easier to do the 7 and get it over with unless I'm missing something here. Dh's income has dropped $8000 per year and I don't work. We live so far out in the country that by the time you figure in gas, babysitters for our kids and wear and tear on my vehicle that it's not worth it for me to work.

[EricaCallaha]

If you really can't afford the $9000 of the next 35 months...then convert. If you don't mind the hit that your credit is going to take...go for the 7 conversion. It is better to convert than to miss payments in the 13..have it all dismissed just to start over again.

Good luck.

[gingerbug]

Go for the 7 and move forward with your life and take the lessons you have learned to heart. Best of luck!

[Flamingo]

So I put it all on paper and if we don't convert to a 7 and stay in our current 13 we still owe $9000 over the next 35 months. Do you really think it's better to pay the $9000 even though we can't afford it rather than another negative entry on our credit report? Our home is 11 years old and we have no plans on ever selling it. We bought it when we had good credit and we have a low interest rate on it. My vehicle was bought right before we filed and we bought the extended warranty so it should be good for another 5 years.


IDK. It just seems cheaper and easier to do the 7 and get it over with unless I'm missing something here. Dh's income has dropped $8000 per year and I don't work. We live so far out in the country that by the time you figure in gas, babysitters for our kids and wear and tear on my vehicle that it's not worth it for me to work.

Have you looked into modifying your Plan since you have a drop in income? What kind of equity do you have in the house since you want to save/keep it?

[catleg]

Do you have your secured loans (home and/or car loans) in the plan? I believe that hopefully when the case is closed the payments you've already made will go to the lawyer and towards the secured loans, so I don't believe you will have lost anything by converting. Even if you do, I still think the peace of mind is worth it. I assume the house and cars are covered by exemptions right?

[woeisme]

If I could convert to a 7, I'd do it in a heartbeat. I don't care about my credit report, I never plan to use credit again, not even to buy a car. Of course I have no secured stuff in my plan, so don't have that worry, just unsecured credit card and medical debts, so if I could get rid of them instead of paying $1100 a month for the next 3 years.... well, that's a no brainer!

[aces67]

The only thing we have property wise is 2 vehicles and our home. All 3 of which are paid OUTSIDE the plan. The debts in our plan are unsecured debts.

My lawyer called today and said that we now qualify and he sees no problem with it going through. Today he filed a notice of conversion with the court.