Converting to a Ch 7

[Nicollette]

Im presently in an active 13. I have an appt with my attorney this week to see if I can convert to a 7, due to change in income. I know this is a question for my attorney, but Im just curious to know if reaffirming my vehicle is something that I can decide to do, or if the judge makes that decision? My car Im referring to is being paid for outside of my plan, because I was given approval from the BK judge to incur this debt while being in my Ch 13.

[Pandora]

why convert? You only have 8 months to go if your sig line is correct. Any way you can adjust your order and get your payments lowered due to the decrease in income?

To go this far, and then convert... ouch.

[Nicollette]

why convert? You only have 8 months to go if your sig line is correct. Any way you can adjust your order and get your payments lowered due to the decrease in income?

To go this far, and then convert... ouch.

Everything is correct in my signature line, and I've thought about seeing if can payments can be lowered also since Im almost done. I guess all my options will be discussed when I meet with my atty on Thursday.

[lrprn]

Definitely ask your lawyer about a plan amendment to deal with the loss of income. If that's not feasible, then if Ch 7 turns out to be the only realistic option, hopefully your 13 plan was at a low payback % to unsecureds.

[Nicollette]

Definitely ask your lawyer about a plan amendment to deal with the loss of income. If that's not feasible, then if Ch 7 turns out to be the only realistic option, hopefully your 13 plan was at a low payback % to unsecureds.

Yes my plan is at a low payback to unsecureds. I just wish Thursday would hurry up and get here, so I can find out what my best options are gonna be

[justbroke]

I'm not saying that you have the option, but a hardship discharge for your Chapter 13 may be within reach. Think about it for a moment. You convince the court that with only 8 months left, why do you need to complete a Chapter 13 when you could convert to a Chapter 7 and be done in the next 3 months.

This could wrap up your case in the next 4 months and receive the Chapter 13 discharge. You would need to work with your attorney to determine what the affect of the hardship discharge is on "certain" types of debts. (Noting that the "superdischarge" isn't available in a hardship discharge.)

Just thinking out loud!

[Nicollette]

I'm not saying that you have the option, but a hardship discharge for your Chapter 13 may be within reach. Think about it for a moment. You convince the court that with only 8 months left, why do you need to complete a Chapter 13 when you could convert to a Chapter 7 and be done in the next 3 months.

This could wrap up your case in the next 4 months and receive the Chapter 13 discharge. You would need to work with your attorney to determine what the affect of the hardship discharge is on "certain" types of debts. (Noting that the "superdischarge" isn't available in a hardship discharge.)

Just thinking out loud!

Thanks JB! I'll mention this to my attorney if he doesn't mention it first.

[Pandora]

good luck Nicollette Fingers crossed you can get it amended or do as JB stated.

[freeseattle]

Nicolette, Jb, I just want to ask about attorney's fee t oconvert from 13 to 7. i am converting from 13 after 2 months of payments to trustee. do you pay filing fee again? my attorney sais np, but i've learn she corrects herself a lot .i was quoted $1200 on top of of $1500 i paid for ch 13??? Maybe there is a diiferent threat discussing this, i didn't see yet. thanks

[Nicollette]

Nicolette, Jb, I just want to ask about attorney's fee t oconvert from 13 to 7. i am converting from 13 after 2 months of payments to trustee. do you pay filing fee again? my attorney sais np, but i've learn she corrects herself a lot .i was quoted $1200 on top of of $1500 i paid for ch 13??? Maybe there is a diiferent threat discussing this, i didn't see yet. thanks

Im not sure what the cost is? I met with my attorney about my change in income, and he suggested we modify my plan since there is room for me to do it, instead of converting.

[justbroke]

Nicolette, Jb, I just want to ask about attorney's fee t oconvert from 13 to 7. i am converting from 13 after 2 months of payments to trustee. do you pay filing fee again? my attorney sais np, but i've learn she corrects herself a lot .i was quoted $1200 on top of of $1500 i paid for ch 13??? Maybe there is a diiferent threat discussing this, i didn't see yet.

This entirely depends on the Attorney! It also depends on how much work they did in the Chapter 13 and how much of their "earned" fees are "in" the plan. Some attorneys will do it for a LOT less than what they would normally charge, since the paperwork is really mostly done. There are some changes and a new Means Test.

If your attorney -- the one that filed your Chapter 13 -- is asking for $1,200 to convert, then this price should be "less" than what s/he normally charges for a Chapter 7. You have to realize that the attorney has some paperwork to do and there is a new 341 Meeting as well.

Since you listed that you only paid $1,500 for the Chapter 13, that would tell me that some of the fees were in the plan and the attorney hasn't recouped that which s/he earned. That $1,200 value me be a good deal. Why not just ask around to several other Chapter 7 attorneys and see what the going rate is for a NEW case.

[maddog2112]

My ch13 lawyer said I wouldn`t be able to convert, since my income was too high. I went to a 2nd attorney, and he charged 1200 to convert from my 13 to a 7 three years in. I would have been glad to stay in the 13 if the trustee payments would have been realistic, but they were`nt. When I had a significant drop in income it made it impossible. My first lawyer still said I couldn`t convert. Just goes to show, you can`t always take what your lawyer tells you as gospel. Hope this helps.