I've had a $1000 a month decrease in my monthly income. I was barely getting by while in a Chapter 13. I am considering coverting to a Chapter 7 but I'm not even sure I can afford to do that. Does anyone have any idea what it costs to covert and what is the process? I have no secure debt and no assests other than an older car and household furnishings.
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Cost to covert to a Chapter 7 ?
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Originally posted by MJJ57 View PostI've had a $1000 a month decrease in my monthly income. I was barely getting by while in a Chapter 13. I am considering coverting to a Chapter 7 but I'm not even sure I can afford to do that.
However, if your income loss is long-lasting, then can you afford to *not* convert? If you haven't already, talk to your attorney IMMEDIATELY about your income decrease. Find out how much it will cost to convert.
Don't assume anything in this kind of situation. You need to know the real facts before making decisions that can affect the rest of your life.
Does anyone have any idea what it costs to covert and what is the process? I have no secure debt and no assests other than an older car and household furnishings.
The only way to know for sure what *YOUR* lawyer will charge is to contact him/her and find out when you are sharing the significant change in your income.I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.
06/01/06 - Filed Ch 13
06/28/06 - 341 Meeting
07/18/06 - Confirmation Hearing - not confirmed, 3 objections
10/05/06 - Hearing to resolve 2 trustee objections
01/24/07 - Judge dismisses mortgage company objection
09/27/07 - Confirmed at last!
06/10/11 - Trustee confirms all payments made
08/10/11 - DISCHARGED !
10/02/11 - CASE CLOSED
Countdown: 60 months paid, 0 months to go
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mjj57 - that's my nightmare, that my clients will fail their chapter 13 plan or convert to a 7 and I lose those earned fees! But the answer is Yes, if you convert to a 7, the unpaid attorney's fees get discharged as well.
--WilliamI am an attorney, but I am just not your attorney.
As such, any statement is not intended to create an attorney/client relationship.
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Originally posted by BKDefender View Postmjj57 - that's my nightmare, that my clients will fail their chapter 13 plan or convert to a 7 and I lose those earned fees! But the answer is Yes, if you convert to a 7, the unpaid attorney's fees get discharged as well.
--William
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If someone seems like they're flaky, then I won't put any fees in the plan and it all comes up front to avoid that problem.
There's two things I and most attorneys fear - losing earned fees and bar complaints. We'll accept the former and just about anything else to avoid the latter.
--WilliamI am an attorney, but I am just not your attorney.
As such, any statement is not intended to create an attorney/client relationship.
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MJJ57: Depending upon how long you've been paying in to the Chapter 13, your attorney fees may have already been paid in full.
I know in my area (Michigan) the attorney was paid first out of the plan. She was paid in full by the end of month 4.
You may not owe your attorney anything more for your 13.Filed Chapter 13 02/2006 - Confirmed 05/2006 - Discharged 09/2011
I'm not an attorney. My replies are merely suggestions or observations, not legal advice. As always, consult with an attorney before making any decisions.
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You have 2 choices,
1. Assuming you would qualify for chapter 7, converting
2. Modifying the plan to reduce the payment.
As far as affording to convert, you probably will be able too. Look at it this way, you will go 2-3 months without making your chapter 13 payment and most attorneys don't charge a "full" BK fee to convert. And some (very few, but some) just do it for you at no additional cost. If you modify, the attorney simply pulls more fees out of the plan.
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I'm self employed and in a chapter 13 (in NV, wife didn't file). My attorney said that if in the future my income still goes down and I want to convert to a chapter 7 it will cost me about $500. I paid him $1500 upfront and the rest is in my plan. This is my second month and my 341 meeting is on the 16th of February. Got paid in January. Looks like zero for February. If March is a big zero also I'll be calling him with my options.
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