Converting CH 13 to Ch 7

[Michigan42]

Hi all,

I filed Ch 13 this time last year & was repaying, & all was fine. Well, got let go from my long time job back in December & I'm collecting unemployment & looking to get retrained for a new career (far away for anything automotive) under the NWLB program here in MI.
My dilemma is that the schooling will take 2 years once they fund it (could be months from know) & the UI benefits will run out before I'm finished with school. Right now were having a hard time making the payment to the trustee & all of the other living expenses. Also, like many of you, my home is worth less than half of what I bought it for. The neighborhood is declining & crime is on the rise. So, would it be better to convert to a Ch7 now in lieu of maybe defaulting on the trustee payment in the near future? Even if we somehow could hang on & pay out the remainder of the CH 13 (4 more years), I'm thinking I'll have a short sale at best for my home & maybe owe 35k at closing?

If converting to CH 7 is an option, what are the consequences/pitfalls? I know our home will be lost, but what about our vehicle (2001 van), computers, camera, furniture, etc?

Thanks,

M42

[newbie2]

Hi all,

I filed Ch 13 this time last year & was repaying, & all was fine. Well, got let go from my long time job back in December & I'm collecting unemployment & looking to get retrained for a new career (far away for anything automotive) under the NWLB program here in MI.
My dilemma is that the schooling will take 2 years once they fund it (could be months from know) & the UI benefits will run out before I'm finished with school. Right now were having a hard time making the payment to the trustee & all of the other living expenses. Also, like many of you, my home is worth less than half of what I bought it for. The neighborhood is declining & crime is on the rise. So, would it be better to convert to a Ch7 now in lieu of maybe defaulting on the trustee payment in the near future? Even if we somehow could hang on & pay out the remainder of the CH 13 (4 more years), I'm thinking I'll have a short sale at best for my home & maybe owe 35k at closing?

If converting to CH 7 is an option, what are the consequences/pitfalls? I know our home will be lost, but what about our vehicle (2001 van), computers, camera, furniture, etc?

Thanks,

M42

If you want to get out of the house payment (and declining value) now would be a good time. Call and make an appointment to see your attorney for another consulation. Bring him/her updated info on your income and go from there to determine if you qualify for a Chapter 7.

I don't know what your property is worth, so I can't comment on whether they fall in to the exemptions or not. Your attorney can tell you that at your meeting.

Good luck to you.