Obtained financing during Chapter 13 without approval

[car67]

If switching from a 13 to a 7 any debt acquired in that time span is now dischargeable under the 7 according to my attorney as we are switching!

[tennessee]

You probably already know this but I am pretty sure that the AC loan needs to be paid back 100% regardless of the chapter you are filing especially since it's post petition.

If you convert to a 7 you may have to re-affirm the debt or since it was "post petition" it may not even matter that its re-affirmed. Either way it all must be paid back in full. Good luck!

Hmm...but if I convert a 7 NOW would that actually still be post petition? Even if I convert from the 13 to the 7 now, is it possible that I could still be responsible for half of the AC unit? I'm assuming I could put in the divorce that he is responsible for 100% of it since he may be getting the house that it's attached to...but I've seen where decisions such as these don't always work out even with a court order. I'm guessing there is still a chance that it could come back on me.

[tennessee]

If switching from a 13 to a 7 any debt acquired in that time span is now dischargeable under the 7 according to my attorney as we are switching!

That's what I was thinking too...

[justbroke]

Hmm...but if I convert a 7 NOW would that actually still be post petition?

Ahh, the wonderful Conversion loophole! If you are in a Chapter 13 and are converting to a Chapter 7 (11 USC 1307), then you get to include all debt incurred from the time of filing your Chapter 13, until the time of converting to Chapter 7.

Even if I convert from the 13 to the 7 now, is it possible that I could still be responsible for half of the AC unit?

Not my read of 11 USC 1307!f

[CH33 Paralegal]

Go talk with your attorney. You guys have a lot to talk about with him.

[tennessee]

Go talk with your attorney. You guys have a lot to talk about with him.

I have an appointment on Friday afternoon...

Justbroke, thanks for your response! I read 11 USC 1307 and it was very informative. I know I sound like some chic who just wants to run out on her responsibilities and creditors but seriously, these creditors have been paid for the last 3 years of the 13 because I saw to it that everything was paid and straight...But what do you do when you are abandoned by your spouse for someone else and are being forced by your soon to be ex-spouse to get out of the marital home asap? All I know to do at this point is find out the best options to protect myself and provide for my 2 sons...that's all a person can do in this situation.

[rrockinggramma]

your other option is to dismiss the chapter 13 and then file on your own a completley new chapter 7. Either way the ac unit might be counted as secured debt. It will all depend on how the finance company files the claim. If they file it as unsecured, then you would only pay them a percentage. Not many companies know how to file those claims properly and so you might be lucky. LOL Good luck. Talk to your attorney and stop stressing out about this. If it were me, and I knew I would qualify for a chapter 7 once divorced, I would be converting as fast as I could. ( and all new debt would be included because it becomes a new case)

[tennessee]

your other option is to dismiss the chapter 13 and then file on your own a completley new chapter 7. Either way the ac unit might be counted as secured debt. It will all depend on how the finance company files the claim. If they file it as unsecured, then you would only pay them a percentage. Not many companies know how to file those claims properly and so you might be lucky. LOL Good luck. Talk to your attorney and stop stressing out about this. If it were me, and I knew I would qualify for a chapter 7 once divorced, I would be converting as fast as I could. ( and all new debt would be included because it becomes a new case)

Talk to my attorney? I so wish I could...they can't advise me directly due to the conflict of interest with the spouse and all and I totally get that. I just wish I had a divorce attorney who knew the first thing about bankruptcy law. As mentioned, I do have an appointment with my bankruptcy attorney on Friday at 3:00. Not sure how that is going to go...

The company that gave us financing for the AC unit has a lien on the house until it is paid off...Can I assume that means it is secured and would that have to be paid before I can convert even if my ex stays in the 13 and keeps the house?

We still owe 1200.00 in back mortgage payments from 2006 through the 13 and that amount is secured. Does that mean that I have to pay the 1200.00 before I can convert even if my ex stays in the 13 and keeps the house?

Thanks again for all of your help, everyone!

[CH33 Paralegal]

Hmm...but if I convert a 7 NOW would that actually still be post petition?

It comes down to the case number. If the case number is the same, then the date that number was originally generated is still the petition date.

So even for your converted 7, the day you filed the 13 is still your date of filing.

Now, if you REFILE, then it's a new petition date.

[woeisme]

Someone will have to pay the $1200 in back mortgage payments for him to keep the house, but why should it be you if you are getting kicked out of the house? I say let it be his problem, but of course have no knowledge of your divorce settlement.

[tennessee]

Someone will have to pay the $1200 in back mortgage payments for him to keep the house, but why should it be you if you are getting kicked out of the house? I say let it be his problem, but of course have no knowledge of your divorce settlement.

We have no divorce settlement currently. And if the above is correct then it seems I can't convert to 7 until either the secured debt is paid UNLESS he can take over the secured debt plus the financing we took on in for the AC unit...If he is making the same amount of money he was making 2 months ago he cannot afford it all...But that may be a non-issue.

I realize that this is not a forum for home owner's insurance but today has not been a good day...Today the insurance company showed up unexpectedly to take photos of the house. He said that there was supposed to have been a letter of notification but I never received one. Problem: The day before the ex and I separated we had planned to put in a back deck and he tore the porch out...so he took photos of no back porch at all with a 3 foot drop to the ground...Just a pile of concrete that was once a porch. A month ago the roof started leaking and a section of the ceiling fell in the hallway. The insurance adjuster took photos of a blue tarp on the roof of the house. Also my ex installed a 28ftx52" pool in the back yard two years ago yet we have no gate around the pool...that was yet another summer project for this year. In addition the grass is completely grown up because the ex (or someone associated with him) broke in while I was away last month and took the lawn mower, weed eater and tools from the basement.) The adjuster was not happy at all although I tried to explain away things..."The ex is getting ready to install a porch..." "Someone stole the lawn mower and we haven't been able to afford a new one." None of these statements are false...But he went away very unhappy with the state of the property. This was the only company willing to insure us at a reasonable rate while under Chapter 13. Other companies were $1500-$2000 more per year...I'm assuming they will give the ex 30 days (as they did before when we were missing a piece of siding on the house.) But those repairs are not going to be cheap. What a mess...

But then again...I am moving away from it all in just a few days...

I'll have to find out from the attorney if the ex can take over the secured debt and I can convert to 7 while also including the financing for the AC unit. Surely they will answer that and not consider it a conflict of interest...I seriously did NOT want to convert to 7...but the mess is piling up and I just don't see my ex being able to afford all that needs to be done...I need to give it up and plan on converting...if I can.

[car67]

I really feel your pain and its not right you go through all your going through!
Here is what I would do!

Leave the house go get a place you can afford dont ask anyone permission
just leave the whole ball of wax as it sits....

once you got your place to live wrapped up then start looking for
a chapt 7 attorney when your finances allow Let the 13 dismiss
on its own if your ex doesnt make payments..

as for the AC really when it comes push to shove the ac is leined to the house..... if your ex is keeping the house with help of the bankruptcy he will have to file solo to make it then the ac issue will be wrapped in there...

as for your liability to the ac if your leaving the house and done with the house and plan to file 7 when you can WHO really cares what happens to the ac and the liability if the ac place is chasing you takes some time to drag ya in court! play the cards given just this way and I think you will be fine

my prayers are with ya

[tennessee]

I really feel your pain and its not right you go through all your going through!
Here is what I would do!

Leave the house go get a place you can afford dont ask anyone permission
just leave the whole ball of wax as it sits....

once you got your place to live wrapped up then start looking for
a chapt 7 attorney when your finances allow Let the 13 dismiss
on its own if your ex doesnt make payments..

as for the AC really when it comes push to shove the ac is leined to the house..... if your ex is keeping the house with help of the bankruptcy he will have to file solo to make it then the ac issue will be wrapped in there...

as for your liability to the ac if your leaving the house and done with the house and plan to file 7 when you can WHO really cares what happens to the ac and the liability if the ac place is chasing you takes some time to drag ya in court! play the cards given just this way and I think you will be fine

my prayers are with ya

Excellent! This is what I am going to do...sounds risky to just drop the ball and walk but with numerous very important issues being up in the air right now it doesn't seem like a good time to make a final decision this week...I've pretty much resigned to going with a 7 whether it be converting or waiting for the ex to crap out on the 13 and then file...In the meantime I'm just going to move to my new house on the lake in Kentucky and chill out with my sons :o)

[car67]

glad to hear... u can worry yourself to death and miss life... There is not much you can do.. get away from your loser husband get your new home sitauted that you can afford and take it easy.... Work hard pay what ya can and call it a day.... glad i could HELP thanks