When do payments stop when converting from chapter 13 to 7?

[5sracing]

So I plan on converting from chapter 13 to 7 this september when our baby is born. My wife will be filing for 7 also when I convert in september. We will be under the median income for the last 6 months so we pass the test. After the baby is born our disposable income will be under $100 so we look good there. Since my attorney is pretty much useless and I have to look up the laws myself. If we bring in all the necessary bills, statements, etc. When does my payments for chapter 13 stop??? After the baby is born there is no way in hell we can live off of just my paycheck, raise a newborn and pay chapter 13 payments. I asked my attorney what to bring when we see him and i got two different responses. I dont want to make several trips and still have to pay the payments and make my family suffer. Thanks for any advice

[5sracing]

So after doing some research, do the payments possible stop when a Notice of conversion to chapter 7 is filed with the court system?

[CCB35]

in my situation,my wife lost her job and i told the attorney i couldnt live on 250 a month.He said first i would have to get my 13 dismissed and then the payroll deduction would stop and then i would have to refile as ch7 .

[lrprn]

So after doing some research, do the payments possible stop when a Notice of conversion to chapter 7 is filed with the court system?

Your Ch 13 payments typically stop after your Ch 7 341 meeting when your Ch 7 trustee makes the determination that you do indeed qualify for Ch 7. However, this can depend on local court customs, so ask your lawyer to see what to expect.

[mrslick]

hello everyone,
I'm in a similar situation and that's why i think you guys can help me. here's a background on my case:

Filed Nov. 16, 2009
my disposable income was $386/month according my lawyer
I left my 341 meeting with a $786/month payment plan. Trustee said i had to pay at least 21% of my debts.

The DMI of $386/month was with a household income of $120k/yr. at that time we filed my wife was pregnant, it was documented in the BK paperwork. our income was over the median income of a family size of 2, but our mortgage payment alone is $2800/month with one car payment of $390/month. Student loans are $380/month (we went to states colleges) between me and my wife. so you can see how how our DMI could easily be $386. We are behind 2.5 months in our mortgage payments when we filed and that's because i was out of work for 6 months in 2008 and we used one month to pay the attorney.

1st week of June my Wife had the baby so i thought my payment should have been adjusted even before the baby was born. The Trustee told my attorney that the baby would have to be born first before she would consider us admending the plan. I did my research as far as putting the baby to infant care so that my wife can go back to work after the 3 months maternity leave is up. i got different quotes the one we decided on is $1400/month and it was not the most expensive ones plus it's close to my work. once i find that out i said to my attorney there's noway on earth we'll be able to afford the plan. he agreed with me but stated that because of our income the trustee will not let us convert to 7. So he contacted the trustee and she said that we canvert if we can get a loan modification or we'll have to lose the house. unlike most people in america i actually have equity in my house mostly due to a $60k fixing it. the house was a foreclosured house and it was in a bad shape when we bought in 2007. losing the house is not in option we've already lost 3 other investment properties (and yes we did take a lot of risk by having all of these properties but i rather take risks than being in welfare).

lets get back to the topic, so i started the loan modification in june only to find out it will months for someone to be assign to my file. I called my lawyer to inform him about the waiting period and i told him will not be able to continue making the payment. by the way my Wife is only getting 60% of her pay while she's on leave. i told my attorney since i'm not too far behind on our mortgage payment, i can get the money from a relative to catch up. The Trustee does not allowed me to catch up because of preferrable treatment to one creditor she said. Here's another roadblock my mortgage company said that due to our current income the 31% debt/inc. ratio they use on loan modification will increase my monthly payment therefor we will not qualify.

We were going to request a dismissal of the Ch. 13 then refile once we caught up on our mortgage payment. But i realized that if i can get the loan modify and convert to 7 at the same time, that will be nice. it comes down to this if we stay in ch.13 we will not be able to survive. so we decided that my Wife will go back to work part time wich will make us elligible for the loan modification. our income will still be $15k above the median for my state (massachusetts) for a family of 3 but we will be under the $98k for a family of 3 with two only 2 earners.

Questions:
1. how come the trustee is not letting me convert to 7 if the bank itself said that i'm not too far behind so i would not be foreclose on?
2. should i request to dismiss the ch. 13 anyway and cath up on my payments and then refile for 7?
3. should i have my attorney request a stop on the monthly payments until the loan mod comes through?
4. Do you think converting to ch. 7 is possible being our income will still be over the median?

any inputs will be great, thanks.