A little history: I filed a joint bankruptcy with my ex (then husband) in Dec. 2009. We qualified for a chapter 7 at the time, but I really needed to keep the car and the lawyer was pushing for us to do a 13. At the time, we knew we were getting divorced and the attorney recommended that we file first. My ex and I physically separated in summer 2010 but our divorce wasn't finalized until Nov. 2011.
The problems: We both agreed to keep paying 1/2 of the monthly payment. Lately he hasn't been keeping up his end and our case is over 2 months behind. According to our attorney, the trustee will probably file a motion to dismiss any day now. My payments come out of my paycheck each month, so they have always been there. However, I didn't send in the tax refunds for 2009 or 2010. I had to use them on various expenses, since my cost went up greatly with the separation and divorce. The majority of it was spent on deposit for new apartment, first months rent, divorce lawyer fees, maintaining household etc. He didn't have any additional tax refunds, because in 2009 we filed together and in 2010 we filed separate, but he owed money. In 2011 we filed single (I filed head of household). He also owed in 2011.
We would like to convert to a chapter 7. I realized that I might have to give back the car if I can't work something out with the loan company. I don't make much money, so can't really afford to work out payments with the loan company. The only thing that would work is if the loan company was willing to accept what I'm currently paying for my 1/2 of the chapter 13 (about $140 month). since I wouldn't be making those payments with the chapter 7.
My questions: Will not returning the 2 tax refunds affect the conversion? I just filed my refund for 2011 yesterday. I should be receiving a fairly large tax refund (around $6,000) because of EIC (earned income credit). It was so large because I get to claim both children and only made ~$20,000 last year. My income hasn't changed in 3 1/2 years and won't change any time soon. Ideally I would like to dismiss this chapter 13, and use the tax refund to hire a new lawyer (not happy with current one) to file a chapter 7 under just my name and also to purchase a used car (and giving the old car back). As a single mom, I can't afford to not have a car. I am really desperate, any advice would be appreciated!
ETA: I know each state is different, so just thought I'd also mention that the requirements for tax refunds. We are allowed to keep 2 months payments or $600 (whichever is less). In our case it's $550 that we can keep since we pay $275/month
The problems: We both agreed to keep paying 1/2 of the monthly payment. Lately he hasn't been keeping up his end and our case is over 2 months behind. According to our attorney, the trustee will probably file a motion to dismiss any day now. My payments come out of my paycheck each month, so they have always been there. However, I didn't send in the tax refunds for 2009 or 2010. I had to use them on various expenses, since my cost went up greatly with the separation and divorce. The majority of it was spent on deposit for new apartment, first months rent, divorce lawyer fees, maintaining household etc. He didn't have any additional tax refunds, because in 2009 we filed together and in 2010 we filed separate, but he owed money. In 2011 we filed single (I filed head of household). He also owed in 2011.
We would like to convert to a chapter 7. I realized that I might have to give back the car if I can't work something out with the loan company. I don't make much money, so can't really afford to work out payments with the loan company. The only thing that would work is if the loan company was willing to accept what I'm currently paying for my 1/2 of the chapter 13 (about $140 month). since I wouldn't be making those payments with the chapter 7.
My questions: Will not returning the 2 tax refunds affect the conversion? I just filed my refund for 2011 yesterday. I should be receiving a fairly large tax refund (around $6,000) because of EIC (earned income credit). It was so large because I get to claim both children and only made ~$20,000 last year. My income hasn't changed in 3 1/2 years and won't change any time soon. Ideally I would like to dismiss this chapter 13, and use the tax refund to hire a new lawyer (not happy with current one) to file a chapter 7 under just my name and also to purchase a used car (and giving the old car back). As a single mom, I can't afford to not have a car. I am really desperate, any advice would be appreciated!
ETA: I know each state is different, so just thought I'd also mention that the requirements for tax refunds. We are allowed to keep 2 months payments or $600 (whichever is less). In our case it's $550 that we can keep since we pay $275/month
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