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    #1

    Conversion question

    Hi all,

    I am currently 24 months into a 36 month 13 plan. Things are going well; my job is good with annual raises and the payments are not an issue. At the time of the original 13 filing, my income would have allowed for a chapter 7 filing. The reason that I chose to file a 13 was simply a lien strip.

    Interestingly enough, a few months into the 13 plan our lien was forgiven by our servicer (we successfully completed a loan mod, and this was the second part of the mod at the lenders discrection). It is my guess that the lender knew a lien strip was coming and chose to forgive the note, collecting pennies on the dollar for it. So, here I am, I have a good job and no lien to strip, wondering if I would be better off converting to a chapter 7 just to simply be done.

    My question would be this; based on my original means testing (I qualified for a chapter 7 at the time), would a conversion still be a possibility? I simply am ready to get on with my life and not worry about the Trustee.

    Thanks for any opinions you all may have.

    Skipper
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    #2
    When they "forgave the note" did they release the lien? Or are they still on your title/deed? If you're unsure, call a title company's customer service dept. They can look it up for you.
    Filed Chapter 13 on 2-28-10. 341 completed 4/14/10. Confirmed 5/14/10. Lien strip granted 2/2/11
    0% payback to unsecured creditors, 56 payments down, 4 to go....

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      #3
      Originally posted by momofthree View Post
      When they "forgave the note" did they release the lien? Or are they still on your title/deed? If you're unsure, call a title company's customer service dept. They can look it up for you.
      Hi Mom, they did release the lien (I have the documents showing "paid in full").

      Comment

        #4
        I am pretty sure if you convert, you must update your information and use current financial status. You're probably better off to just finish out the next year of payments.
        ~Staci
        Not an attorney, and never played one on tv. My responses are based on my own experiences & personal opinions.)

        Comment

          #5
          Hi...

          Thanks for the reply. I probably will just finish with the plan. i reviewed my confirmation document, and all the Trustee requires from me is a copy of my Fed/State taxes. I plan file in mid-April of '13 and then send the copies mid-May. By the time my taxes get reviewed, my plan payments will basically be complete (end of June, '13). I spoke to the atty's office, and was told not to worry about the plan being completed. They see no issues getting to a discharge. I guess my worry about completing my 36 months without issue was for nothing!

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