Convert from ch13 to ch7 advice
Hi all,
My husband got notice that he is being laid off effective October 31st. I thought I was getting a promotion in January, but that is no longer happening. Also, I am most likely facing a hysterectomy (sp?) possibly in the next few months so I won't be able to work for 8 weeks and I don't get paid if I don't work (I'm part-time but on-call 6 days/week). Anyway, circumstances will change very soon for us.
I know that I can't do anything until the events actually happen. I also know that we will have to take the laid-off paperwork and unemployment benefits to our lawyer as soon as possible to show the change in circumstances. But my questions that I haven't found on here by searching the boards, is if we must do the means test and DMI again to convert to a ch7? I sent an email to the paralegal about this but she gave me a brush off reply that I'm not sure is correct. Will we have to go back six months again to see if we're above/below the median to convert to a ch7? FYI: I live in Missouri. If so, will we have to survive "as is" those six months to get the income low enough to qualify? It is going to be next to impossible to make it through that many months even if the lawyer can get ch13 payments deferred for 3-6 months.
Our biggest expense/asset is our house. It eats up about 50% of our income just for the mortgage/HELOC and then that doesn't account for electricity, propane for heating, cable tv, telephone, trash, etc. I am not adverse to turning it over if need be to convert to a ch7. If times get bad (which I believe they will) I don't think we will be able to pay our mortgage/HELOC. Should we continue to be current on the house and move out (move in with a relative) to save housing expenses or should we stay at home and not pay the mortgages? I know my attorney will need to answer that question but I am just going crazy with wonder until we're in the midst of all of this and can finally talk to the lawyer with the necessary paperwork in hand. I'm definitely not a spontaneous person and I like to plan ahead and it is driving me crazy wondering what will happen. BTW: It was estimated we had -$7K in equity in our house at the time of our ch13 filing.
Any advice is appreciated.
My husband got notice that he is being laid off effective October 31st. I thought I was getting a promotion in January, but that is no longer happening. Also, I am most likely facing a hysterectomy (sp?) possibly in the next few months so I won't be able to work for 8 weeks and I don't get paid if I don't work (I'm part-time but on-call 6 days/week). Anyway, circumstances will change very soon for us.
I know that I can't do anything until the events actually happen. I also know that we will have to take the laid-off paperwork and unemployment benefits to our lawyer as soon as possible to show the change in circumstances. But my questions that I haven't found on here by searching the boards, is if we must do the means test and DMI again to convert to a ch7? I sent an email to the paralegal about this but she gave me a brush off reply that I'm not sure is correct. Will we have to go back six months again to see if we're above/below the median to convert to a ch7? FYI: I live in Missouri. If so, will we have to survive "as is" those six months to get the income low enough to qualify? It is going to be next to impossible to make it through that many months even if the lawyer can get ch13 payments deferred for 3-6 months.
Our biggest expense/asset is our house. It eats up about 50% of our income just for the mortgage/HELOC and then that doesn't account for electricity, propane for heating, cable tv, telephone, trash, etc. I am not adverse to turning it over if need be to convert to a ch7. If times get bad (which I believe they will) I don't think we will be able to pay our mortgage/HELOC. Should we continue to be current on the house and move out (move in with a relative) to save housing expenses or should we stay at home and not pay the mortgages? I know my attorney will need to answer that question but I am just going crazy with wonder until we're in the midst of all of this and can finally talk to the lawyer with the necessary paperwork in hand. I'm definitely not a spontaneous person and I like to plan ahead and it is driving me crazy wondering what will happen. BTW: It was estimated we had -$7K in equity in our house at the time of our ch13 filing.
Any advice is appreciated.
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