chapter 13 plan finish or try to convert to chapter 7

[dylancarly]

I am 3 years complete on a 5 year chapter 13 plan. I recently lost my part time job which pretty much was the amount I paid the trustee. The question is should I actively try to find another part time job if possible or should I try to convert to a 7 now that our income is below the median income in my state. Any thoughts on the risks of going back to court or re-examining my entire plan again or would it be cut and dry. I am so far into it I would hate to rock the boat. I am paying less than 50 percent of my 100,000 unsecured debt and my student loan is in the plan. Any thoughts?

[justbroke]

Convert.

(Unless you're doing a lien strip or have other tax type issues in the Plan.)

[Flamingo]

Talk to your attorney. Your attorney will probably advise you to get another job ASAP and finish the Plan. Of course you need to be employed to fund a Chapter 13 plan so if you are unable to find a job you will have no choice but to convert. Right now, since you filed 3 years ago, you will only have a BK on your credit reports for another 4 years if you stay in your 13. If you convert, you will have a Chapter 7 on your credit reports for 10 years from the day you convert plus you will probably be showing two BKs on your credit report. I would discuss the entire situation with your attorney but I would seriously look at trying to find a job and finish out your Plan.

[graciemae]

I would try to find another job and finish your plan, you are over half way there! If you convert your 7 will be on your credit report for 10 years unlike your 13 which will be off in just 4 more years. I know it's tough and 2 years seems like a long time away but you can do it! I remember in the beginning 5 years seemed like FOREVER, and every year it still seemed endless. I had 2 periods of time where we lost my income for 6 months and it was tough but we stuck it through.........now we are only 4 months away!!! Good luck!

[justbroke]

I'm on the fence on this one. Primarily because the person works a second job, just to stay in plan. That's a tough place to be... for years.

[woeisme]

I would convert unless there are extenuating circumstances the OP didn't report on. (mortgage arrears, taxes, lien strip, etc) Using lots of credit helped get me into my mess, so I couldn't care less about what happens to my credit score, but that's just me. I have a very secure job (tenured) and a low house payment in the town I work in, so can't anticipate having to move or need good credit in the future as I plan to operate in the mode of "if I don't have the $ for it in cash, I won't buy it" even after I get out of my CH 13. But of course if you have a job that does credit checks, or anticipate buying a house in the future, maybe it's worth working your fingers to the bone for another couple of years, but otherwise, I'd say CH 7 all the way.