Converting 7 to 13?

[pigpen75]

Those of you who don't know my story, my dad had a life insurance policy that left me $26k after $8k of funeral expenses. We'll I owe a little over $30k in debt. I've currently filed ch. 7 and my lawyer tells me the trustee will probably go after the $8k in funeral expenses. I'm wondering if the court will let me convert to a ch. 13 so the funeral doesn't loose their money and the creditors can get the rest of the $26k and I can make payments of the rest. Any suggestions.

[JJL]

If they really end up trying to take the 8K back from the funeral home. Why not just let them. Don't saddle yourself with debt if you don't have to.

[justbroke]

I would fight -- and worry about fighting -- the $8K in funeral expenses from the death benefits.

First, if it was paid directly, I would argue that the death benefit never reached your hands and that it is not property of YOUR bankruptcy estate. You may win on that argument alone! You may argue that regardless of whether the decedent was intestate or had a will, you were obligated to pay funeral expenses from the insurance proceeds. At least that would be my argument.

The amount seems customary and reasonable so if I were the Trustee, I'd back off.

Don't worry about a Chapter 13 right now.