Converted from 7 to 13...just so I have this straight?

[AKA]

So, I didn't pass the means test for my 7 because after almost 2 years of making next to nothing I suddenly started making good money just before filing. NOTE: File when the last 6 months have been financially miserable as well as the next 6 months.

So now, for the 13, I have another 341 meeting scheduled in March and a confirmation hearing in April. My lawyer said he would not charge me the additional fee of $1600 to file the 13 and submitted a 13 motion for $169 monthly for 60 months at 100% repayment. I will be surrendering the house.

My question is what will the trustee be looking at in the 341 and moving forward? The 6 months prior to me filing the 13 or the 7? Will they ask for updated financial documentation, another means test, etc.? My concern is that my income is becoming steadily better and that the trustee may dismiss or file another POA. How concerned should I be and what can I expect?

This place is great! Thank you.

[mike258]

I converted from a 7 to a 13. The 6 month look back period for the 13 was as of the date of the conversion, not the date of the original 7.

Basically, I had to resubmit everything based on the date of the conversion.

[AKA]

I converted from a 7 to a 13. The 6 month look back period for the 13 was as of the date of the conversion, not the date of the original 7.

Basically, I had to resubmit everything based on the date of the conversion.

As a commission only employee, I guess I'd better stop working so hard...lol!

[dontburnthep]

So they restart the look back clock even though it's a conversion? Wow, it would almost make more since to allow it to be dismissed and then refile later once you've had time to regroup.

[HHM]

Since your future income is an ongoing asset of the Bankruptcy, they often request updated financial info at the 341 meeting. So be prepared, and if there are substantial differences, the trustee may object and require your attorney to amend the petition and/or modify the plan. Granted, your attorney should fight the trustee and try to negotiate it.

[AKA]

Since your future income is an ongoing asset of the Bankruptcy, they often request updated financial info at the 341 meeting. So be prepared, and if there are substantial differences, the trustee may object and require your attorney to amend the petition and/or modify the plan. Granted, your attorney should fight the trustee and try to negotiate it.

Well that just sucks! Only reason why my 7 didn't go through is because I did the right thing by finding a good paying job again and now I'm being crucified for it as the previous 2 years of little to no income aren't even considered...as if I had been making this amount of money the whole time. Well guess what, this won't give me a lot of incentive to work hard at my commission only job. What a quandary.

[dontburnthep]

AKA, have you filed your 2010 taxes yet? We are also converting, have not filed taxes, and don't know whether we should.

[justbroke]

So they restart the look back clock even though it's a conversion? Wow, it would almost make more since to allow it to be dismissed and then refile later once you've had time to regroup.

A Chapter 13 is always based on surrendering your disposable monthly income (DMI) to the custody and control of the Trustee, regardless of when it occurred. In practice, they set this upon the case starting. However, in this particular case, the Chapter 7 was denied for "totality of circumstances" because a new job occurred. It is perfectly reasonable and expected that the Chapter 13 Trustee would want to recalculate the DMI.

Also, since AKA mentioned commissions, this is going to be interesting with the Trustee, but it may go over okay. If you're in a 100% plan (at $160/month), that means that there isn't really anything to argue about on the commissions. But, it has me thinking. You filed for only $9,600 worth of unsecured debt? A bankruptcy is a big gun to use on such a small amount. Don't mind me though, I'm just thinking aloud.

As a commissioned employee, AKA was best to have not started working right around filing. A good attorney would have let you know this and would have explained to you what the "totality of circumstances" complaint is all about.

[momofthree]

In a 100% plan, even if they want more money out of you monthly, that just means you'll be paid off and your bk discharged that much sooner.

[AKA]

A Chapter 13 is always based on surrendering your disposable monthly income (DMI) to the custody and control of the Trustee, regardless of when it occurred. In practice, they set this upon the case starting. However, in this particular case, the Chapter 7 was denied for "totality of circumstances" because a new job occurred. It is perfectly reasonable and expected that the Chapter 13 Trustee would want to recalculate the DMI.

Also, since AKA mentioned commissions, this is going to be interesting with the Trustee, but it may go over okay. If you're in a 100% plan (at $160/month), that means that there isn't really anything to argue about on the commissions. But, it has me thinking. You filed for only $9,600 worth of unsecured debt? A bankruptcy is a big gun to use on such a small amount. Don't mind me though, I'm just thinking aloud.

As a commissioned employee, AKA was best to have not started working right around filing. A good attorney would have let you know this and would have explained to you what the "totality of circumstances" complaint is all about.

I have a house in foreclosure w/ 1st and 2nd plus 3 years of real estate taxes, plus CC debt of about $7k. The house payment was originally based on two peoples income (divorced) and once it became just me trying to keep the house afloat with a deteriorating income was impossible. Tried to modify twice, approved then magically disapproved then tried again when started a new job but declined. At that point I said if you won't come to an agreement to take my money the house is yours. So I was in reality looking at a grand total of $250,000 in debt (secured/unsecured/taxes). If I can come away with a $169 mo for 60 month 100% plan, I will be happy.

[AKA]

In a 100% plan, even if they want more money out of you monthly, that just means you'll be paid off and your bk discharged that much sooner.

My plan has yet to be accepted. I sent my lawyer the signed documents for $169 mo x 60 at 100% the other day, but still have the 341 and Confirmation hearings. He told me do not advance pay, even at 100%. Just fly under the radar and be happy.

[justbroke]

If I can come away with a $169 mo for 60 month 100% plan, I will be happy.

I would be happy too! If that's your final confirmed payment, that is not too shabby!

[AKA]

I would be happy too! If that's your final confirmed payment, that is not too shabby!

Well, I hope my explanation made better sense of your "big gun overkill" theory...lol. Ninety some odd % of my debt is secured (basically the house and associated taxes) which I am surrendering because I don't want to have to worry about the lender coming after me moving forward. Most of the unsecured debt I will be repaying is CC debt which is pretty much the $169 x 60. The car I drive btw is my girlfriends (she has 2 cars) and is in her name. I paid off my Infiniti lease shortly before filing.

[newbie2]

Well that just sucks! Only reason why my 7 didn't go through is because I did the right thing by finding a good paying job again and now I'm being crucified for it as the previous 2 years of little to no income aren't even considered...as if I had been making this amount of money the whole time. Well guess what, this won't give me a lot of incentive to work hard at my commission only job. What a quandary.

Bankruptcy is a voluntary petition. You're not being crucified, your circumstances changed and now you can repay part of your debt. If you had filed before you started working again then you wouldn't be in a Chapter 13. We all make decisions, and sometimes they work out well, other times not so well..

Also, Chapter 13 is voluntary. You cannot be forced to convert to a 13.

[AKA]

UPDATE: 341 meeting went well. This trustee was much easier to communicate with. I've made 2 payments and now I have the Confirmation Hearing in a couple weeks. Although I am in a 100% repayment plan I just grossed $11,000 in commissions last month (commission only employee)...most I ever made in one month in my life. Should I be worried about the Confirmation Hearing?