Hello all! I have been searching and reading posts for days about converting 13 to 7. I have an less-than-trustworthy lazy who very rarely returns my calls. The longer we are in this bankruptcy, the more I realize she has steered us wrong.
She told us to go behind on our first to increase the debt on our home, and then we filed a 13 to attempt a lien strip. Her brother was opposing counsel, which I was never comfortable with, and we ended up with an AP settling on a reduced interest agreement/modification that reduced our payments but not the loan balance. We were paying our 1st mortgage arrears into our plan, a $700 past due state tax bill, a $1500 past due local tax bill, and of course the cc debt at a very small %.
I was able to secure a loan mod on the 1st (which incorporates all the arrears), which was approved by the court and new loan paperwork is due to us on the 1st. I am thinking we might want to consider converting to a 7 now since we never got the lien strip. The lien strip and our self-induced Wells Fargo arrears were the primary reasons we were in a 13.
My first question is does our ch 7 qualification go by our original B22C at the time of filing? Or do we need to qualify again on an updated CMI form? A side note...we were/are over median but show negative CMI on the 22C. Also, I just caught a huge mistake--our atty filed the 22C with an apparent error. She put a different number on line 56 (total allowed deductions--it is $437 less than what is listed on line 52).
My second question is do we need to file updated schedules I and J? Our current income (6 months back) is higher but I just had to put the kids into daycare as I work from home, my husband works out of town on a job all week, and my two family members who used to babysit for free both took jobs.
My last question is does the agreement on the 2nd (the AP) still stand or is that affected by the conversion?
Sorry it is such a long post...thanks for any input!
She told us to go behind on our first to increase the debt on our home, and then we filed a 13 to attempt a lien strip. Her brother was opposing counsel, which I was never comfortable with, and we ended up with an AP settling on a reduced interest agreement/modification that reduced our payments but not the loan balance. We were paying our 1st mortgage arrears into our plan, a $700 past due state tax bill, a $1500 past due local tax bill, and of course the cc debt at a very small %.
I was able to secure a loan mod on the 1st (which incorporates all the arrears), which was approved by the court and new loan paperwork is due to us on the 1st. I am thinking we might want to consider converting to a 7 now since we never got the lien strip. The lien strip and our self-induced Wells Fargo arrears were the primary reasons we were in a 13.
My first question is does our ch 7 qualification go by our original B22C at the time of filing? Or do we need to qualify again on an updated CMI form? A side note...we were/are over median but show negative CMI on the 22C. Also, I just caught a huge mistake--our atty filed the 22C with an apparent error. She put a different number on line 56 (total allowed deductions--it is $437 less than what is listed on line 52).
My second question is do we need to file updated schedules I and J? Our current income (6 months back) is higher but I just had to put the kids into daycare as I work from home, my husband works out of town on a job all week, and my two family members who used to babysit for free both took jobs.
My last question is does the agreement on the 2nd (the AP) still stand or is that affected by the conversion?
Sorry it is such a long post...thanks for any input!
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