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Wife converting from 13 to 7...I am staying in 13

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    Wife converting from 13 to 7...I am staying in 13

    We are in the Middle District of Florida:

    My question is this...my wife and I just had our 341 meeting, and are thinking of converting her from the Ch 13 to a 7, with me continuing payments in the Ch 13 plan (0% paid back except atty fees and old income taxes from 2003) , until 2012 when I can dismiss and convert to a Ch 7. We are over the median income by $600 per year, but are negative in our DMI. I cannot convert now b/c of a Ch 7 filing in 2004 (bad decisions when I was young), but we are not sure how to proceed.

    We are surrendering two homes, our primary (owe $190, 000 and worth $88000) and an investment property currently rented to family. We have a lot of unsecured debt, but are not retaining any assets. Our attorney said my wife could probably convert b/c of our negative DMI, but recommended that we just stay in the Ch 13. Why, I don't know.

    We just want all our problems to be put behind us, and get a fresh start. We are starting to recover from a job layoff I suffered in 2009, which is what caused our initial filing to begin with.

    The problem is that when we filed we were told that we were going to be in a 36 month plan, even though we were marginally over the median income. We were completely fine with that. Shortly before the hearing, our attorney (not the atty we met with when filing) said that we will have to be in a 60 month plan, and that our payments would probably go up. We are trying to save for when we have to move, and when we know our expenses are going to increase, so our budget does not allow for much more than the $100 we are paying the trustee now.

    Does anybody have any thoughts about what we are trying to do? Any successful conversions for one spouse while the other stays in the Ch 13 plan? Thanks.

    #2
    First: if you filed ch. 7 in 2004, you cannot file 13 now and convert it to 7 in 2012. You will have to dismiss the 13, and file a new ch. 7 case in 2012.

    You will need to ask your attorney about splitting your currently filed ch 13 into 2 cases: 7 for your wife and 13 for you. Have heard of this being done in situations where a couple divorces, not sure if its possible otherwise?

    If you are over median at time of filing, you must do 60 months. Your attorney gave you bad info if he told you 36 was a possibility. One problem with changing things now? Your ch. 13 attorney fees are included in your plan. A chapter 7 would need to be paid in full in advance. Your wife would need to pay $1500-2500 to file a ch. 7. Plus there would be fees for changing your joint ch. 13 to a single ch. 13, and if all of what you're currently due to pay in is only enough for trustee fee/taxes/current atty fees - then you'll need to pay those up front.
    Get mortgage modified: DONE! 7 months of back interest payments amortized, payment reduced over $200/mo
    (In the 'planning' stage, to file ch. 13 if/when we have to.)

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      #3
      Yeah, the plan was to dismiss my Ch 13 in 2012, and then immediately file a Ch 7, but was not sure if it could be done. Our attorney charges $995 to convert plus the $25 fee for motion to convert. I was going to continue to stay in the Ch 13 plan and pay for 24 months, and did not know if it was possible to do that and have my wife convert to a Ch 7 at the same time. Just the same, thanks for the information...

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