Converting to a Ch. 7

[Forza42]

Hello! We have been in a Ch. 13 for over a year now, we live in AZ. The only reason we chose Ch. 13 was to get rid of the line of credit on the house. We were told that once we were in the Ch. 13 for a year and after the lien strip, we could convert to a Ch. 7. We are still waiting on the lien strip, but I inquired about converting to a Ch. 7 and this time I was told if we converted to a Ch. 7, the lien strip would be null and void. Does that sound correct?

[despritfreya]

We were told that once we were in the Ch. 13 for a year and after the lien strip, we could convert to a Ch. 7. We are still waiting on the lien strip, but I inquired about converting to a Ch. 7 and this time I was told if we converted to a Ch. 7, the lien strip would be null and void.

Wonder who told you a lien strip would be effective if you convert to a 7 after being in a 13 for a year. I sure hope it was not an attny in Arizona.

The lien strip, once done, will not be effective unless and until you obtain the Chapter 13 discharge. This is what all bk judges in Arizona follow.

Des.

[justbroke]

The only place that I know that allows a lien strip in a Chapter 7, is "some" parts of Florida. Otherwise every single District in the other States do not allow it. Our lien strip ability is based on what the 11th Circuit Court of Appeals did "not" say in In re Tanner, 217 F.3d 1357 (11th Cir.2000) (referencing Dewsnup v. Timm, 502 U.S. 410 (1992)).

[Forza42]

Hmm, maybe that's why our attorney does not work there anymore. Totally bummed now , but thanks for the response!

[AngelinaCat]

Hmm, maybe that's why our attorney does not work there anymore. Totally bummed now , but thanks for the response!

I wonder if the attorney even WORKS as an attorney anymore? That might be worth an inquiry to the State Bar...

[dmc-2008]

You got bad info as far a s I know too. You have to have a successful discharge for lien strip AND the interest clock is still ticking on it, so if you have to pay it off now for any reason, that gets tacked on there. That is what I was told. Making the discharge that much more important and necessary. Good luck!