Converting a 13 to a 7?

[aces67]

We filed a 13 2 years ago. Now due to the economy we can't pay our bills anymore. I spoke with our lawyer who says he should be able to convert it to a 7 at this point.

In the last six months dh has grossed only $26,000 where he used to gross $36,000. We seem to be below the median income now. We are in TX and from the info I can find it looks like we are below the median and our budget is now more than we make.

My question is we have 2 vehicles and if dh's job continues like it's going we can only afford 1 of them. If I let my vehicle go back that will save us $650 a month in payments and car insurance but it will also leave some money leftover in our budget. If I keep it and find 6 months from now that things aren't getting any better and I let it go back then I will owe the finance company anyway.

So do you think I have a chance at a 7? Can I also let my car go back or not? We are a family of 4 if that helps.

Thanks!

[jessegirl]

We filed a 13 2 years ago. Now due to the economy we can't pay our bills anymore. I spoke with our lawyer who says he should be able to convert it to a 7 at this point.

In the last six months dh has grossed only $26,000 where he used to gross $36,000. We seem to be below the median income now. We are in TX and from the info I can find it looks like we are below the median and our budget is now more than we make.

My question is we have 2 vehicles and if dh's job continues like it's going we can only afford 1 of them. If I let my vehicle go back that will save us $650 a month in payments and car insurance but it will also leave some money leftover in our budget. If I keep it and find 6 months from now that things aren't getting any better and I let it go back then I will owe the finance company anyway.

So do you think I have a chance at a 7? Can I also let my car go back or not? We are a family of 4 if that helps.

Thanks!

I think it sounds pretty good that you would qualify for a 7. We are doing a chapter 7 and we put our vehicle in the petition and I continue to pay on it. I did NOT sign a reaffirmation and wont. I just pay and if i want i can let it go at anytime, cause it was put on my petition as a creditor.

If you let the car go back what will you do for transportation, you have 2 children right? Are they involved in sports? Just wondering how you would do it with 1 vehicle.

I hope that helps.

[aces67]

Well dh isn't working as much anymore and my in laws live next door. They have 3 cars and only 1 of them can drive so they are willing to help.

So are you using I include my car but I keep paying for it and they won't take it back unless I can't pay anymore? If I get to a point where I can't pay anymore then I give it back and they can't sue me?

[jessegirl]

Well dh isn't working as much anymore and my in laws live next door. They have 3 cars and only 1 of them can drive so they are willing to help.

So are you using I include my car but I keep paying for it and they won't take it back unless I can't pay anymore? If I get to a point where I can't pay anymore then I give it back and they can't sue me?

Well, most of the time they do not take the car if you are continuing to pay for it. But, ya just never know. My attorney says that as long as the vehcile is on your petition as a creditor and you do NOT sign a reaffirmation, then the vechile will be included in the BK and we can give the car back at any point and not be sued or liable for anything else.

Thats great if your in-laws can help you out with a car. I would get rid of the other car and use one of there and use that money towards something else.
Goodluck.

[AngelinaCatHub]

Well dh isn't working as much anymore and my in laws live next door. They have 3 cars and only 1 of them can drive so they are willing to help.

So are you using I include my car but I keep paying for it and they won't take it back unless I can't pay anymore? If I get to a point where I can't pay anymore then I give it back and they can't sue me?

EERrrr if I understand the question: Yes. Don't reaffirm, it is called a 'pay through'. Then you can give it back. After all is done, maybe you could buy one of the inlaw's cars? 'Hub

[relief13035]

Don't reaffirm

[DebtStinks]

Keep the car at least long enough to help you qualify for the chapter 7. Then once your are on the other side of your Chapter 7 you can decide if you want to dump it for something with a lower payment or just go with one car for a bit to save money.