Just wanted to share this! So, we've been in our Chapter 13 plan paying $405/month with no problem for a year and a half until this month. Let me just say, June has been a spectacularly sucky month until today! June 1st my husband called and told me that he had been demoted and transferred to a different store. 
We did the math and we figured out we were losing about $1,200 a month in income. Now, the reason we were in a Chapter 13 in the first place is because *I* made too much money (and I'm only part-time up to 36 hours a week) and it pushed us JUST OVER the median income guidelines (I think, if I got that right) to qualify for a Chapter 7 in the first place. So, now we had gone in the opposite direction, making less than we were before we filed for our bankruptcy in January of last year.
We called our lawyer in a panic and we saw him this morning. He told us to BREATHE and that he foresaw no problem in converting to a Chapter 7 since we don't have a mortgage or a car tied into it. He wants 4 weeks of paystubs for hubby, my paystubs since Jan (got a raise, but yay for having to buy my own health insurance, parking fee, etc so it's probably LESS than what it was before in take home pay, lol) and our tax return for 2011, just in case (small refund from Federal, but we owe to State). He told us to not bother with the payment for this month or next as it takes two months of not paying our payment to the Trustee in this state before a motion for dismissal is filed by the Trustee. He said he would file the conversion well before then, so it wouldn't matter, but even so the Trustee would inquire as to why no payment first. I was panicking about the payment for this month because the sudden change in income would only allow me to make a half payment and I was freaking out about how to pay for my daycare, groceries, my utilities...
I totally blanked on asking him how long it takes to convert from a Chapter 13 to a Chapter 7, so if anyone has an idea I'd like to know.
For the first time since June 1st, I think my hubby and I are actually GRATEFUL for the demotion, because it will allow a conversion and discharge of our bankruptcy (just to be clear, we were fine with the Chapter 13 plan). Our lawyer was also able to tell us that court had paid our tax debt that was included AND our car payment in arrears. He said that it was interesting how the universe favored us as it usually takes the court all of the five years to pay the leasing company (Carmax) when an arrears car payment is included.
I've called Carmax and the woman was delighted to tell me that yes, in fact, the court paid them last month and would I like my title now?
I could seriously cry happy tears right now!
We did the math and we figured out we were losing about $1,200 a month in income. Now, the reason we were in a Chapter 13 in the first place is because *I* made too much money (and I'm only part-time up to 36 hours a week) and it pushed us JUST OVER the median income guidelines (I think, if I got that right) to qualify for a Chapter 7 in the first place. So, now we had gone in the opposite direction, making less than we were before we filed for our bankruptcy in January of last year. We called our lawyer in a panic and we saw him this morning. He told us to BREATHE and that he foresaw no problem in converting to a Chapter 7 since we don't have a mortgage or a car tied into it. He wants 4 weeks of paystubs for hubby, my paystubs since Jan (got a raise, but yay for having to buy my own health insurance, parking fee, etc so it's probably LESS than what it was before in take home pay, lol) and our tax return for 2011, just in case (small refund from Federal, but we owe to State). He told us to not bother with the payment for this month or next as it takes two months of not paying our payment to the Trustee in this state before a motion for dismissal is filed by the Trustee. He said he would file the conversion well before then, so it wouldn't matter, but even so the Trustee would inquire as to why no payment first. I was panicking about the payment for this month because the sudden change in income would only allow me to make a half payment and I was freaking out about how to pay for my daycare, groceries, my utilities...
I totally blanked on asking him how long it takes to convert from a Chapter 13 to a Chapter 7, so if anyone has an idea I'd like to know.
For the first time since June 1st, I think my hubby and I are actually GRATEFUL for the demotion, because it will allow a conversion and discharge of our bankruptcy (just to be clear, we were fine with the Chapter 13 plan). Our lawyer was also able to tell us that court had paid our tax debt that was included AND our car payment in arrears. He said that it was interesting how the universe favored us as it usually takes the court all of the five years to pay the leasing company (Carmax) when an arrears car payment is included.
I've called Carmax and the woman was delighted to tell me that yes, in fact, the court paid them last month and would I like my title now?
I could seriously cry happy tears right now!
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