Waiting as long as possible question

[mnvikingfan]

We filed chapter 7 in March of 2005.

We currently need to file chapter 13, but then will convert it to chapter 7 in March of 2013.

Does it make sense to wait as long as possible before filing the chapter 13?

Should we wait until we are sued before filing?

[justbroke]

Why do you need to file Chapter 13 and later convert to Chapter 7?

[momofthree]

You won't be able to convert to a ch.7 due to your previous bk. You have to wait 8 years from filing date to filing date, and when you convert it goes by the initial filing date. You can dismiss the 13 and then refile a 7 at that point though.

[justbroke]

momofthree is right and I didn't notice that distinction. The new bankruptcy code provisions (BAPCPA) of 2005 were specifically to prevent these serial filings. You may just want to stay in the Chapter 13, and learn some budgeting.

My question still partially holds? Why are you filing? Your prior discharge was less than 5 years ago. Perhaps you should just stay in a Chapter 13.

[pepperoncini]

They're correct.

I'm in a similar situation. Filed BK7 in 2004 after we lost our daughter after a drowning accident.

Now we're in deep again. We have paid the retainer to our atty. And all the paperwork is in. We're planning on keeping the paperwork current with hyis office and waiting out the 25 months until we can file another BK7, if possible.

If any creditor holds our feet to the fire, we'll file within a week. Until then, we're destrying our credit but I have to gamble with about $20K at stake that we would pay into a BK13. (We're a family of 6 making $37K...)

Why are we filing again? 'Cause the economy has been bad!! 'Cause things happen! "Cause we were busying grieving the death of our daughter and celebrating the birth of our twin sons - we didn't pay attention. This time we are. "serial filers" we may be to some, but I'm cool with that.

Afterall, many financial issues happen when a person is not paying attention. I'll be the first to admit that I wasn't paying attention.

[SMinGA]

Sorry - I just repeated what's already said. Did not read replies first.

[mnvikingfan]

Thank you for all of your answers.

Since it was asked why we need to file again, here is the short story. The 2005 bankruptcy was due to stupidity on our parts by trying to keep a business running that was failing. We just should have went out of business sooner instead of getting further into debt. As far as why we need to file again, a year ago my wife and I had jobs that were paying us each about $45,000 per year. We budgeted based on that $90,000 per year. Since last fall, my wife's position was eliminated and I took a 10% pay cut so that I could keep my job. Basically, our income went from $90,000 per year to $40,500 per year. We are making about $1,000 less per week than what we were making last year.

[Flamingo]

Thank you for all of your answers.

Since it was asked why we need to file again, here is the short story. The 2005 bankruptcy was due to stupidity on our parts by trying to keep a business running that was failing. We just should have went out of business sooner instead of getting further into debt. As far as why we need to file again, a year ago my wife and I had jobs that were paying us each about $45,000 per year. We budgeted based on that $90,000 per year. Since last fall, my wife's position was eliminated and I took a 10% pay cut so that I could keep my job. Basically, our income went from $90,000 per year to $40,500 per year. We are making about $1,000 less per week than what we were making last year.

You made the mistake many make - becoming debt free from the BK, being able to start over well with good salaries and not budget/plan with savings in place, get sucked back up in the credit trap and taking jobs/situation for granted. When the job loss, income loss or hour loss hits, it's another wake up call and without savings, etc. in place, there is no way to pay the bills again. No job is guaranteed unless one leaves a job for a better one and has it locked in. We didn't file BK prior to our filing in 2002 but everyone needs to know that unless one makes major changes to a lifestyle after filing and learn from the experience as to finances and budgeting, it can all happen again. If either of us lost our jobs now, we would not have to file again and becoming a serial filer makes it more difficult to file the second time as there is more scrutiny by the trustee.

[justbroke]

pepperoncini, the serial filing aspects of the BAPCPA were not created for your particular circumstances. It was created because some people would abuse the "automatic stay" in order to avoid foreclosures, repossessions and other creditor actions. Unfortunately, it affects all of us that are honest and needy debtors.