Chapter 7 to 13

[buckeye85]

My lawyer wasnt in the office today and I have been thinking about this all day. On the fence if a chapter 7 is going to be approved or if I am going to be forced to do a chapter 13. If a chapter 7 is denied can a chapter 13 be filed asap or is there a waiting period?

[despritfreya]

You can allow your case to get dismissed and then file a new case or you can convert to a Chapter 13. There are pros and cons for either choice and the decision needs to be made based upon your specific circumstances. This, of course, assumes you did not qualify for the 7.

[nfreeze]

despritfreya- what would make a person "not qualify" for chapter 7 if all the numbers are in line?

[buckeye85]

The reason I ask is, when I filed the lawyer said I had a 50/50 shot of the chapter 7 going through. And as I play the waiting game now waiting for my 341 meeting I am wondering if I made a mistake gambling with a chapter 7 and should of just done a chapter 13. So thats why I was asking if my chapter 7 gets denied if I can refile a chapter 13 right away. And i guess it doesnt look good switching from a 7 to 13? Im questioning myself wondering if gambling with a chapter 7 was a very good idea.

Edit: And the reason I am on the bubble whether or not the chapter 7 goes through is because one of my monthly expenses is a little high.

[despritfreya]

As I tell my clients who may not qualify for a 7 but want to try. . .

"It is not a matter of winning or losing. Just because you get booted out of 7, does not mean you can't do a bankruptcy. It just means you can't do a 7. You can still do an 11 or 13 - whether or not you want to is a whole other story."

My guess is that if only one of your expenses is high (and the expense is justified based upon your circumstances) you will not have a problem pursuading the powers that be to go away.

__________________________________________________ ___

In response to Nfreeze:

If all of the #'s are in line there is no "presumption of abuse", however the one can make an independant inquiry as to whether or not there is a substantial abuse under 707(b)(3).

[momofthree]

The reason I ask is, when I filed the lawyer said I had a 50/50 shot of the chapter 7 going through. And as I play the waiting game now waiting for my 341 meeting I am wondering if I made a mistake gambling with a chapter 7 and should of just done a chapter 13. So thats why I was asking if my chapter 7 gets denied if I can refile a chapter 13 right away. And i guess it doesnt look good switching from a 7 to 13? Im questioning myself wondering if gambling with a chapter 7 was a very good idea.

Edit: And the reason I am on the bubble whether or not the chapter 7 goes through is because one of my monthly expenses is a little high.

I'm curious as to why that would be? If you dismiss your 7 and then refile your 13, you have 2 bankruptcies on your credit report. If you just convert to a ch.13 you only have 1 bankruptcy on your credit. It seems to me that it "looks better" to just convert. However, I'm wondering if maybe I don't have all the info that you have regarding this issue.

[tobee43]

really...i would either change to an atty that can make certain about your 7...although, no one can assure you of anything...but it makes NO difference...so you file for 7 and it gets dismissed or...it turned into a 13...

if you go directly into 13....let's see...the only thing you have to lose is 3-5 years of monthly payments that will be going to the banks and line the atty's pockets.

i would go for the 7....your credit report forget it anyway for the next few years...whether it's a 7 or 13 or both.....the difference would be what???? 2 months ...when your waiting 10 years for something to be removed what's the difference really...i know they say a 13 comes off quicker...i know someone that was denied a mortgage for a 13 that was discharged 5 years prior to them applying for the loan...go figure.

if my atty told me i only had a 50/50 chance...i'd find another atty...which we did.

[screentest]

Buckeye,

I am in this exact situation right now. I had thought I preplanned our Chapter 7 well in advance, had the numbers checked and re-checked, met with 4 lawyers and all but one said Chapter 7 for sure and then finally submitted and filed our chapter 7 with a law firm I believed in.

Now, 5 months since the planning began we are facing a "presumption of abuse" from the US trustee and all our numbers were in line right down to the last dollar. (After corrections and re-submittal that is) I am now faced with either paying to challenge the abuse assumption, converting to a 13 I don't believe in or dismissing and fighting the creditors until I can file another 7 again in the future. Not great choices.

I may have done a chapter 13 in the first place except it made no sense to me because I have no assets to save. Our house in 350K underwater and reporting to a financial parole officer for 5 years is just not something I was interested in doing for the benefit of the bankers.

The BK process has been very stressful and expensive for me. Not only am I BK I am now broke as well. Hindsight being what it is...right now I regret my decision to file and maybe should have waited another year or so and tried working a settlement with creditors. I don't know.

Either way it is a personal decision you have to make. A decision that stays with you for 10 years no matter what the outcome.

Good Luck

ST

[tcreegan]

Credit reports

Hi all,

Hi momofthree,

No need to worry about the credit report, you can get them to remove the Ch 7 if it is dismissed or converted. You will only have 1 BK on your credit report.

At least one thing not to worry about...

Tom in Colo

[momofthree]

Hi all,

Hi momofthree,

No need to worry about the credit report, you can get them to remove the Ch 7 if it is dismissed or converted. You will only have 1 BK on your credit report.

At least one thing not to worry about...

Tom in Colo

I realize that it only shows one bk when the case is converted, but if you can remove a dismissed bk, then why are people always recommended to follow thru on a bk because "your record will always show that you filed regardless of whether or not you complete the bk"?

I'm not being snarky, it's an honest question. If you can just remove it, then why are people constantly advised otherwise?

[backtoschool]

I realize that it only shows one bk when the case is converted, but if you can remove a dismissed bk, then why are people always recommended to follow thru on a bk because "your record will always show that you filed regardless of whether or not you complete the bk"?

I'm not being snarky, it's an honest question. If you can just remove it, then why are people constantly advised otherwise?

Tom is incorrect. You cannot remove a dismissed bk from your credit reports. Once you file, the bk is on your reports for the full time whether it is dismissed or not.

[tcreegan]

credit reports

Hi all,

The big 3 credit reporting agencies are a lot more pliable than you might think. My experience with them is to write letters, and keep bugging them. I have removed judgements w/o having them vacated, taken accounts off, had accounts included in a BK changed to 'closed by consumer' etc. The trick seems to be using written correspondence and being persistent. All three said "No" when I first contacted them, but after a year of letters back and forth they all had done what I requested. It sounds like a lot, but it is really just a letter every week or two. If you really need your credit score back it is worth the try.

Just my experience,

Tom in Colo

[backtoschool]

Hi all,

The big 3 credit reporting agencies are a lot more pliable than you might think. My experience with them is to write letters, and keep bugging them. I have removed judgements w/o having them vacated, taken accounts off, had accounts included in a BK changed to 'closed by consumer' etc. The trick seems to be using written correspondence and being persistent. All three said "No" when I first contacted them, but after a year of letters back and forth they all had done what I requested. It sounds like a lot, but it is really just a letter every week or two. If you really need your credit score back it is worth the try.

Just my experience,

Tom in Colo

It is very difficult to get a bankruptcy removed from your credit report. The way your earlier post read, you made it sound like it is a matter of course to get the bankruptcy automatically removed upon dismissal. The fact is, once you file, you have a bankruptcy on your record for ten years.

[tobee43]

Hi all,

The big 3 credit reporting agencies are a lot more pliable than you might think. My experience with them is to write letters, and keep bugging them. I have removed judgements w/o having them vacated, taken accounts off, had accounts included in a BK changed to 'closed by consumer' etc. The trick seems to be using written correspondence and being persistent. All three said "No" when I first contacted them, but after a year of letters back and forth they all had done what I requested. It sounds like a lot, but it is really just a letter every week or two. If you really need your credit score back it is worth the try.

Just my experience,

Tom in Colo

i agree with tom to some degree.....because of the Fair Credit Reporting Act, if you challenge anything the big 3 have 30 days to fix it or remove it.... it's a ton of work...that includes a BK or judgement if you fight them. normally, the BK's are not removed because they prove within 30 they are valid. if they fail, they MUST remove valid or not.

due to my MOST recent discharge i will waiting for at least 3 months and go at them like a hammer on a nail that can't be driven in.

[backtoschool]

i agree with tom to some degree.....because of the Fair Credit Reporting Act, if you challenge anything the big 3 have 30 days to fix it or remove it.... it's a ton of work...that includes a BK or judgement if you fight them. normally, the BK's are not removed because they prove within 30 they are valid. if they fail, they MUST remove valid or not.

due to my MOST recent discharge i will waiting for at least 3 months and go at them like a hammer on a nail that can't be driven in.

The courts now have the ability to verify electronically and it is very difficult to get a bankruptcy removed because of this.