what is a ch13 converted from a ch7?

[pcn]

I think I have seen it mentioned that a ch13 which has been converted from a ch7 cannot be dismissed. So three questions really.
1) Why would someone convert from a ch7 to a ch13? (the court does it?)
2) Are you locked into whatever the court decides in terms of payments if the court moves you from a ch7 to a ch13?
3) What happens if the payment isn't "doable"?

[lrprn]

I think I have seen it mentioned that a ch13 which has been converted from a ch7 cannot be dismissed.

Actually what you've seen are folks that file Ch 7 and succesfully discharge all their unsecured debt, then file Ch 13 to pay taxes and other obligations, or to save their house. In that situation, new unsecured and secured debts incurred since the Ch 7 was filed cannot be discharged through the Ch 13, even if it is successfully completed.

1) Why would someone convert from a ch7 to a ch13? (the court does it?)

When this does happen (and it's rare), most often the trustee believes the filer has more disposable income than their filing forms indicate. If your lawyer and the trustee cannot come to an agreement, then both file briefs supporting each position. If the judge agrees with the trustee, then the court can convert the Ch 7 over to Ch 13. Frankly, although many who file Ch 7 fear this will happen to them, it almost never happens.

2) Are you locked into whatever the court decides in terms of payments if the court moves you from a ch7 to a ch13?

You are never locked into a position where your lawyer cannot present your position and, if necessary, file a brief to defend your position when your local bk court judge holds a hearing to hear both sides and evetually make a decision who wins. It's the judge's decision that's difficult to overturn without a very good reason or a significant, permanent change in income or expenses.

3) What happens if the payment isn't "doable"?

If your lawyer cannot convince the court that the payment is not realistic in your financial situation, then you have to do everything you can to make the payments. If you can't, then your Ch 13 will be dismissed. Your creditors come roaring back after having added on late charges and penalties to what you owed when you filed. This is something to avoid at all costs.

It's important to keep this in perspective. The chances of a Ch 7 filer being forced to convert to Ch 13, then being forced by the court to pay a payment that is truly not affordable is about the same as a meteor hitting your house today

[TOD74]

My ch 7 was converted to a ch13 and I had NOTHING!! I'll explain. I filed ch7 in Dec 2004. I had a truck that was paid for but it was 10 years old. My lawyer advised me to get a newer vehicle before filing and then reafirm the debt.(pay in full outide of the bk) Ok, so I went to do that and I had to have a cosigner to get a loan.I had a lot of CC debt but that's all...no house or anything. (I had good credit up until I lost my job in early 2004 due to a factory closing...I found another job right away but for less pay) Anyway I got my mother to cosign and bought a 4 year old truck. When we went to the meeting in front of the trustee...he discovered a problem with the bank lein on the truck.Apparently they have 21 days to file somepaperwork on a lein to make it valid...well I guess they were late. Basically as far as the trustee was concerned I owned the truck outright.The trustee wanted to take the truck.I had just got it and had only made 3 payments. The lawyer actually advised me to let them because I could buy it back from the court for less than I owed the bank....but the problem with that was the bank could then go after the cosigner(my mother) My only choice was converting to a ch13 to protect my mother. So I have been in a ch13 since APRIL 2005 with no assets besides a 2000 truck and still renting a 1 br apartment.I should not have listened to the lawyer about buying the truck.... I made my first weekly payment on April 21 2005. It was a five year plan but I am still paying via payroll deduction now (almost JUNE 2010) not sure when I'll get discharged as I thought it would be over by now.I have paid the truck off 100 % and have recieved the title and loan papers back.....still waiting on discharge so I can move on.