Ch. 7 to be dismissed...Question regarding Amount of time to convert to 13?

[alorth]

OK....so we're resigned to the fact that the 7 will be dismissed. We are not even going to contest it anymore at this point.

We will be converting to 13.

My question now is, do we let the 7 dismiss, and take some time before filing the 13?

OR, do we move straight into the 13 right now?

The reason I ask is, it is looking like we need another vehicle. We own a 2005 Chrsler Pacifica we bought in 2008 and a 2009 Hyundai we purchased in 2010.

The Hyundai is fine, but the Pacifica is nearing 100,000 miles and has a bunch of problems that need to be fixed now, and Chrysler's aren't exactly known for their long term reliability, especially models from the early to mid 2000's.

Our payments on both are relatively cheap....$275/month for the Pacifica (with about 21 months left to pay), and $209/month for the Hyundai with about 48 months left (and a much higher interest rate, because we bought it when our credit was already going bad).

Obviously, the interest rates won't matter once the BK 13 kicks in, so I don't care if I have to go to one of those Dealers that specialize in Credit Trouble and charge exorbitant interest rates....or do I? Let me know if my thinking is wrong on that.

But should I even be considering buying a car?

Also, we need to know how much time we might have before creditors start calling again once the 7 is dismissed, IF we hold off on the 13.

I had a lawsuit filed on me by Discover before we filed for the 7, and the case was dismissed once we filed, but I'm pretty sure they'll file again, right?

Any idea how quickly that might happen?

We also want to stop paying on our house now, and use the money to get a rental home, and to move. We want to move "slowly", not be forced to leave all at once.

Does any of this make sense?

[alorth]

Ah....I see the car question I asked was actually answered in another thread on the 13 forum. But that's OK. I could get a car after the 7 dismissed, but then would have to wait like 3 months to file the 13, right?

And as far as the interest rate, it would remain the same no matter what in a 13, even if really high....but I'm not looking for some sweet ride....just a reliable car that will hopefully last the 5 years of the 13, with a payment not more than $100 over the $275 I'm already paying on the Pacifica....so about $375/month. That shouldn't be objectionable, should it?

[keepsmiling]

Many many folks here wind up getting a new car before filing a 13. It's often the only thing that makes sense.
Good luck, keep us posted.

[LadyInTheRed]

Alroth, if you are going to change attorneys, I suggest you run your car purchase question by your new attorney. It is very common to buy a new car before filing Chap 13 and what you propose sounds reasonable. But it should be done only under the advice of an attorney who is familiar with your situation. Keep in mind that many attorneys will not directly recommend that you incur new debt before filing BK. So, instead of asking if you can purchase a car, try asking what the consequences of purchasing one might be.

I would expect the phone to start ringing again pretty soon after your Chap 7 is dismissed. It's impossible to know how quickly creditors will file lawsuits. But, even if they file a lawsuit the day after your BK is dismissed, you should have time to file your 13 before they get a judgment. Even if they get a judgment, it's not the end of the world. The judgment can be vacated after the underlying debt is discharged.

If you know for sure that you want to surrender your house, you can stop making payments anytime. The lender is unlikely to foreclose on an underwater mortgage very quickly. But, I would still recommend you discuss it with your new attorney before you default.

I know you don't have much faith in your current attorney, but have you asked about the advantages of dismissing and refiling versus conversion? I can't help in that area, but make sure you understand the consequences of each option before you allow the 7 to be dismissed.