Converting Chapter 7 to a Chapter 13??? Possible?

[Bloodflowers]

I didn't know if this question would be best in the Chapter 7 or 13 Forums.

I am wondering about converting my Chapter 7 to a 13. I am a no-asset case, already had my 341, and creditors have until 3/14/11 to object. Could converting be a possibility? I have a DMI of $75.

My debt is unsecured credit card/medical debt and student loan debt (both private and federal). My attorney didn't advise me about my student loans except to confirm they wouldn't be discharged (which I knew and anticipated). What I didn't anticipate was my filing for bankruptcy automatically put my private loans into default (I was in repayment on my student loans and had been paying, no problems). I now have a collection agency trying to collect the full balance of my loans. I am aware they can sue me and get a 25% wage garnishment, which we can't afford and would completely devastate us at this point in time.

But if I was in Chapter 13?? Wouldn't that stop collections and give us time to pay back the loans?

My attorney isn't available to talk to about this until later this week, and I am just wondering what I can do.

[olivies]

Did you list the student loans in your filing? They should NOT be calling you. That's a violation of the automatic stay. True, they aren't discharged but that doesn't mean they get to continue collection actions while your case is working.

[Bloodflowers]

Yes, I listed all my student loans, as they were. But my Citibank private loans were returned to the guarantor because of the Chapter 7 filing, and the guarantor uses the collection agency to recover the funds. I know they can't take any action right now, but the reality of what I'm facing is another thing. I don't want my wages garnished.

[olivies]

Not only can they take no action now, they should not be contacting you now. Period. I believe when you file bankruptcy it automatically throws your student loans into a special forbearance until you are discharged or dismissed. But as long as you have an open Ch 7, nobody should be mailing demands for payments or contacting you for payment. Have you spoken to your attorney about this?

Somebody- correct me if I'm wrong.

[Bloodflowers]

Yes, I sent a copy of the collections letter to my attorney, but he hasn't been able to get back to me yet.

I think my federal loans will be fine. But there's no turning back with my private loans and I have no defense against a wage garnishment. It might as well not even be considered a student loan anymore, because there is nothing student-loan about it. It's more like a credit card debt, but one you can't get rid of, due and payable immediately (as soon as my Chapter 7 discharge comes through). I hope a 13 could buy me time.