Convert from 7 to 13

[CATCHMEIFYOUCAN]

I don't think it would be, you need a car (van) especially for a family of FIVE ! I'm no lawyer though. It's LESS DISPOSABLE INCOME the Trustee can take. I was paying for my Honda through my 401k plan (deductions from my salary). So in a way, I didn't have a car payment. When I bought a new car it was an additional expense and again less disposable income (and I still had money coming out of my salary through my 401kplan to boot). Hope you fine a nice ride !

Catchmeifyoucan

[FreshLikeADaisy]

Sean, if you file Chapter 7, what you want to do is go ahead and buy a reasonable vehicle BEFORE you file (new or used, doesn't matter, just make sure it's pmts you can afford after bk) and then when you file, declare your intent to keep the car. You may have to sign a reaffirmation agreement (your atty can tell you more about this) or you might be able to do a ride-through (make your pmts and keep the car) but you won't have to try to finance a vehicle during or after bk this way. I would think it's the same for a 13: go ahead and finance your replacement vehicle now, and include it in your plan; you don't want to have to go through all that trouble of creating a plan and having it confirmed only to turn around and request it be changed so you can add a car to it. No, better to get the car before bk, 7 or 13.

Personally, if your debts are so monumental I don't see what problem you'd have with a Chapter 7, especially if you have little to nothing in the way of assets. You may wish to consult with another atty (most consults are free; consider seeing an attorney that is also a trustee) and see what they have to say. Don't forget that a 13 is more profitable for an atty, and while many are honest there are some who do everything they can to steer you into a 13 even if you qualify for a 7, so it would be well worth your time and effort to get real familiar with the requirements for both. Being over the means test does NOT disqualify you for a Chapter 7, it just means you have to jump through a few more hoops to get it. Many here have done so. You just need an attorney who can navigate you successfully through that process. I also recommend that whatever chapter you go for, to learn as much as you can about it. See my sig for the link to the Nolo Press book on Chapter 7; that's my favorite but there are others out there as well; you would do well to get educated on the basics.

I have to agree with the other posters, I would not take a loan from a relative right now just to keep my head barely above water; with that much debt it wouldn't take much to bankrupt you anyway. Go ahead and do a 7 or a 13, but get that debt off your backs once and for all, and save that relative's bailout for later.

These are just my thoughts, feel free to disagree. Good luck to you!!!