Surprise from attorney...may need to convert to Ch13...WHAT?!?

[brokeinmichigan]

At a hearing with our mortgage company (which was dismissed), my attorney said something to me that was a bit of a surprise. He said that our income "is a little on the high-ish side" and we "may be looking at a 13". WHAT?!? We/he filed a Chapter 7, and actually even delayed the filing by a little bit of time because we were "close" to the median, but NOT over. He "found a loophole" of some sort, etc....who knows...but NEVER had he mentioned the possibility of needing to convert to a 13! I was SHOCKED, to say the least.

So, now I'm a tiny bit nervous, although he said not to be. He says our trustee "is the one we want". He felt we had about a 20% chance of the trustee recommending a 13, and that he wins about 50% of those. So if my math is correct, we have about a 10% chance of having to pay on a 13 for the next 5 years. How we would ever manage that would be anyone's guess, as we are "breaking even" just now, without the cc payments.

Anyone have any thoughts on this? Has anyone else had to convert from a Ch7 to a Ch 13? Should I be suspicious of our atty? After reading another post today about an atty pushing clients to a 13, I started thinking...hmmm.

Input?

Hoping for brighter skies ahead...

[CATCHMEIFYOUCAN]

If your schedules I and J show you have disposable income of $100 or more you are mostly going for a Ch13. Paying 0-100% back to secured creditors first than unsecured. The Means Test showed I was negative $60 but schedules I and J proved I had $800 disposable income ONLY because THAN I had 2 full time Jobs which put me over the Median for my area being a single person. When I decided to quit one of my jobs I imediately fell below the Median and was able to come out of a Ch13 into a 7. THANK GOODNESS.

BEST OF LUCK, CMIYC

Any amount more you might owe the Lawyer can be paid back within the Ch13 if that is where you are headed. The Trustee is always on the side of the creditors and any money that he could possibly get to help pay back your debt, he will do his best to try!

[petrified]

Your attorney is just "preparing" you for the worst. Mine did the same - I stayed as a 7. With the new rules, it is still difficult for the attorney to correctly determine which way to go - especially if you are on the cusp. In my case, US Trustee got involved as soon as my case was filed (gulp!!!) and told me just before my 341 that she thinks I have to go 13......I argued with her right then and there and told her she was wrong and I could prove it. after 341 - I sent my attorney proof that I was right - and I was

Hang in there! It more than likely will all turn out okay.

P

[BKTango]

As long as you are under the median income you qualify for a chapter 7. However, as Catchme stated if you show a certian amount of disposable income on your schedules, that could send you into a 13. Also, if you are in arrears on any of your secured loans that would put you in a 13 if you were planning to keep them. Make sure you have included any and all expenses on your schedules, go back over them. Haircuts, check reorders, stamps, etc. add those into a category, Take into effect any home/car repairs that are needed and add that expense in, same with medical. Think of everything. If you are barely making it start gathering receipts as much as you can to help show you have no disposable income.

FYI...some lawyers, not all but some, will recomend a 13 to those that are on the line because they make more money off of a 13....then in a year or so when you can no longer make your plan payment you go back to that lawyer to convert to a 7 and guess what? You get to pay them all over again. More money in their pocket.

[brokeinmichigan]

I sent my attorney proof that I was right - and I was P

Out of curiosity, what was your proof that you were right? I'm getting nervous...

Hoping for brighter skies ahead...