Conversion to 13 Question

[LALADY]

I've searched for an answer here, but haven't seen it.

I am in Chapter 7 no asset case with motion to dismiss (they think I can pay back 100%). If I convert to Chapter 13 do I need to go through the asset part of the case again or just get a plan confirmed.

Same question if I dismiss then file Chapter 13. Do I need to go through asset/exemption again.

Problem I am facing is house has increased in value approximately $100,000 in past 3 months since filing Ch. 7.

Thanks in advance.

[justbroke]

You will go back through the 341 Meeting, and will need to submit a new means test, but on Form B22C (the Chapter 13 Means Test). You'll probably want to update your Schedule J as well.

Your question regarding appreciation of your home since filing Chapter 7 is an interesting one. If you convert, rather than dismiss and refile, the value of your home is the value that it was when your Chapter 7 case was filed!!! This is one of the best reasons to just convert. Remember, your bankruptcy estate is what you had at the time you filed your case. A conversion just changes the Chapter of bankruptcy you're using... not the filing date.

I hope that answered both questions.

[LALADY]

That helps.

Somehow figuring out how to pay unsecured $50,000 creditors might be easier than having to deal with $100,000 additional house value.

Thanks!

[catleg]

Has your house really gone up 100k?

Maybe if you wait another 6 months it will go back down 100k.

The 8k tax credit expires in April, I believe, and I saw some article which suggested the banks are going to have to blow out a lot of shadow inventory this year.

[LALADY]

Actually it was a fluke that a mirror image of the same floor plan sold at such a low price. The prices are actually going up and may be over $100K+ in 6 months. I've got myself in a jam, I think.