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Converting to Chapter 7 after wife loses job.

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    Converting to Chapter 7 after wife loses job.

    My wife and I are currently in a 13 that has not been confirmed yet. She is the bread winner in the family so we called the lawyer and it turns out that we would be eligible to convert, but we be on the hook for the value of our two cars minus our wildcard exemption. That puts us owing $14K minus the the money that we have already paid in to the 13 which is about $3300. They would take the lawyers fees out of that which would leave us with $1800. We were told that each trustee is different and that we are looking at having to pay all of it up front, spreading it out over 6 months or spreading it out over 12 months. I am thinking about pulling money out of her 401K to pay it off immediately so we can be done with it. I do have some questions though.

    1. If we convert, how long will my wife have to stay unemployed?

    2. Is it a wise choice to use the 401K to be done with it? Please be gentle with your responses

    3. Is it wrong of me to use my wife's current situation to our benefit like this?

    The last one is just me trying to get over the guilt that I felt originally anyways. I personally am to the point now where I am going to use the system like it is written.

    Thanks for the help.

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