Should I convert 7 to 13

[kmiller]

I just finished my second 341 meeting with Trustee for Ch 7 in California. Most debt is business related. Everything seems okay except one thing. I own 33% of a home with my two brothers. The house was left to us when our parents passed. The house is worth $162,000, so my interest is $53,000. I can exempt $23,000, but trustee is asking for me to buy back the rest of my share for $26,000. He says if I don't, he can force my brothers to sell the house.

I was told that it might make sense to convert to ch 13. Does anyone have advice on this? Can he force my brothers to sell the house?

Thanks

[espo1357]

I just finished my second 341 meeting with Trustee for Ch 7 in California. Most debt is business related. Everything seems okay except one thing. I own 33% of a home with my two brothers. The house was left to us when our parents passed. The house is worth $162,000, so my interest is $53,000. I can exempt $23,000, but trustee is asking for me to buy back the rest of my share for $26,000. He says if I don't, he can force my brothers to sell the house.

I was told that it might make sense to convert to ch 13. Does anyone have advice on this? Can he force my brothers to sell the house?

Thanks

Not enough information here.

But, the rule of thumb is to do a 7 if you qualify for it, I am pretty sure of that.

Unless, you have tons of positive assets that you want to protect or have equity. Bottom line is that the 13 is a major pain in the ass.

[despritfreya]

Pay the Trustee and be done with it. If this house has no mortgage on it and with that kind of value, even with your bk, it should be easy for you to come up with the $$ by taking out one with the consent of and maybe even the cosigning of the loan by the co-owners. Paying back a mortgage (with the advantage of an interest deduction) is a darn sight better that trying to convert to a 13 and being stuck in a bk for 3 plus years. Work it out with the Trustee.

Des.

[AngelinaCatHub]

As always, I agree with Des. We had to pay back 5K for our own stuff, and then 5K additional for preferential payments. All unnecessary if we had guidance from a competent lawyer. It was worth it though in the long run. We got our discharge but it took near a year to close for the assets to be gathered and then distributed. I cannot see how the lawyer could force the other two people against their will to sell property when they are not claiming bk. I don't think that is right. But avoid that 13 and get it over with. 'Hub

[kmiller]

Thanks for all the feedback. Time to contact a lawyer.