Chpt.13 or discharge

[tdcoach]

I just got off the phone with the paralegal at my attouneys office. I have been told that the trustee wants us to change our chpt. 7 to a chpt.13. This is due to having excessive expendable income (900) a month. of course the reason we have this much money left over is due to the fact we surrendered our vehicles and now have no payments , ins, etc..., one to the bank and the other was taken by the trustee. I am told I have 2 options chpt. 13 or dismissal. if I go chpt. 13 they will take all of my disposable income and leave me worst off than I was and now with no cars. Would I be better off dismissing and dealing with the creditors. And if I do select the dismissal , what about the truck they took and sold. The way I see it, if they dismiss my case and have taken my truck, they owe me my truck back, which I believe they sold already. My credit is already screwed but with dismissal I can pay the creditors what I can instead of what the Govt. tells me. any suggestions

[aa06a47]

Can you tell me why you surrendered two vehicals? Do you have one now to drive?

[Minnymouth]

Did your attorney not question why you would surrender both vehicles?????
Did you own one of them ourtright (paid for) and that is the one the Trustee took to sell.
In bankruptcy you are allowed to keep you vehicles within reason. Most people just continue paying for them.

Yes you NOW have disposable income to give the creditors!!!

How did this happen??? You didn't need your vehicles??? Or at least one of them???

[tdcoach]

We surrendered one vehicle to the trustee because we owned it, sort of. We took out an unsecured loan to pay off the vehicle. So we have the title but still had the debt. The other vehicle was voluntarily repossesed. If the trustee attempts to convert us to a chpt. 13. What happens to the money they got from the truck? The trustee also wants part of my income tax return. If I give him the money and they convert meto chpt. 13 or I elect dismissal, Do I get that money back? I am current on my mortgage, so if they attempt to convert me to a chpt. 13 at 100% I think I will go for dismissal.

[Minnymouth]

Getting our of bankruptcty is not as easy as you might want it too be.
The "I don't want to do this anymore" won't work.....
You cannot do a Chapter 7 if the Court deems you have substantial disposable income to pay the creditors. Then you will be forced into a Chapter 13.

If you deliberately do not pay a Chapter 13 and cause it to get dismissed, then there is a new time span under the new laws before you can EVER file a Chapter 7 or 13 again.

Plus all balances you owed the creditors (all creditors) become full and active again at originally what you owe them 100%.

Also this leaves the door wide open for all creditors to sue you, take liens, and garnish wages.

Getting a refinance after filing bankruptcy is extremely hard for up to 2 years (and thats with good credit)...
Getting a bankruptcy dismissed is really going to damage your chances of getting a loan of any kind. Unless it a equity loan in you home...... and that is a risk with a high interest rate...