Anyone forced into a 13 from a 7 at the 341?

[ccmisery]

I am in a odd situation, well maybe not odd but like I said I lost my job and was going to file a 13, but my lawyer is proceeding with a 7. I was told that if I have a job at the time of the 341 making a salary that is equal or close to my last, that it will be up to the Trustee to request I convert to a 13.

Has anyone experienced a similar situation? How was your outcome?

[LadyInTheRed]

You can't be forced into a 13. If the trustee does not think you are eligible for a Chap 7 discharge, he/she will file a motion to dismiss the 7. At that point, you can either fight the motion, convert to a 13 or let the 7 be dismissed.

If your trustee tries to get your Chap 7 dismissed because you get a job after you file your petition, your attorney should fight the trustee's motion. Your eligibility for a Chap 7 is determined by the facts as they existed on the date you file your petition. If you pass the means test on the date you file Chap 7, and your attorney says that getting a job after filing would be the basis for dismissal of your Chap 7, I'd find another attorney.

[AngelinaCat]

We, too were going to file a Ch13, but after I lost my FT job, we had no choice but to file a Ch7. At no time did the trustee try to suggest that we ought to be a Ch13. However, we were an Asset case and had to make monthly payments to buy our non-exempt stuff back from the BK estate. The trustee mentioned that he expected that the funding for that monthly payment would come from "when Mrs. Cat secures FT employment."

That was back in 2008. I have YET to find FT employment. I am now 60 years old, and I know my age is a factor in having been passed over for five good FT jobs that I have applied for. Meanwhile, I am very thankful to have a good PT job.

For the record, we were able to make the payments to buy our non-exempt stuff back.

[ccmisery]

I was told that the Trustee can do exactly what you said.

I am also planning on losing some non-exempt assets but I figure if I even could file a 13, that the repayment plan and 5 years at that would be difficult and I would end up paying back the equal amount in what my assets are worth by rough estimation. That is what concerns me, I really do not want to end up in a repayment plan for 5 years.

I know a lot of people in the age group of 40-60+ who want to work and can't get hired, its' really a shame that things are like this. I am also worried about bankruptcy discrimination due to this. I have had 2 job losses in the past year, my wife was out of work for 6 years, after years of interviews and job applications, she got a job doing something out of her scope and pays poorly but it's a job and she is happy for that.

[AngelinaCat]

If it helps make you and your wife feel a little better, we ended up feeling like we fared far better going with the Ch7 instead of a Ch13. In spite of the fact that thanks to little and no guidance from our incompetent attorney--we made several horrendous and costly mistakes during our BK. When it was finally over with, we were very thankful and relieved that we weren't saddled with five years of payments.

We didn't find this forum until all those mistakes had been made....

[LadyInTheRed]

I was told that the Trustee can do exactly what you said.

He can "suggest" you convert. But, the only thing he can do officially is to request your case be dismissed.

That is what concerns me, I really do not want to end up in a repayment plan for 5 years.

If you would really rather stay in debt, nobody can force you into converting. People can be forced into involuntary Chap 7 and 11, but there is no such thing as an involuntary Chap 13.

[AngelinaCat]

If I gave the impression that we were 'forced' by the trustee into a Ch7, I apologize. That was not the case. When we went for our pre-filing credit counseling/course, we were told then by the counselor--we met face to face--that we were more suited to a CH7, rather than a 13, even with my FT job. The income to outgo ratio just wasn't there. But we were going to try to do the 'honorable thing' and try to pay back at least a little to our creditors. But when I was laid off a couple of months later, that was the clincher.

Then we were an Asset case, because we had too many personal items that were not covered by exemptions. These are family heirlooms that really have no monetary value for anyone else, but we had to buy them back from the BK estate. Florida's exemptions are not the greatest.

[ccmisery]

I am in Florida too, but I did not exempt any land as a homestead so this raises our exemptions.

I was told $5K each since husband and wife can double claim.

We have no antiques or heirlooms.

I still feel I have a chance of being requested to go 13, if I land a job prior to my 341 which might be a possibility.