Conversion from a Chapter 13 to a 7

[onepowerfullady]

Hi Everyone. I am new and this BK thing is all wild for me and my husband. We live in the state of Mississippi. We kind of need some help here. We filed a chapter 13 in April 05 with medical bills, a house, and two cars. We did this because I had surgery, got pregnant, had a baby, had another pregnancy which was tubal, then I had my gallbladder out. So of course, we got two months behind in my mortgage, 1 month behind on my husband's car, and almost 3 months in my car note. We made payments into our plan all the way up until November 30th. Somehow, the trustees ofc sent in a payment increase into my husband's job in which they interpreted that the BK payments shoud cease and desist. We thought that we were getting a "pay check break" between the change in payment. So we bothered not to call anyone. I got layed off my job and the payments were still not coming out of my husband's check. We have three little ones and our utilities and gas still had to be paid too. If you get my drift.

We called the lawyer and she was unreachable and it was a downfall from there. When we finally got in touch with her we had gotten a letter from the trustees ofc stating that they were going to dismiss our case. She then suggested that either we come up with half of the money and then allow them to modify the plan. There was no way we could come up with the money of about 4,500.00 so then she told us that we may want to consider converting to the 7. She went to court and told the trustee this and he gave us 10 days to convert and we did. We converted on May 9, 2006...this year.

She told us that we had to contact the car people and the mortgage asking that we reaffirm the debt. They both asked me why was I calling and not the lawyer. I told them that she told me so. So they told me that I may should have considered filing the 7 from the beginning and reaffirming my debts and we could have gotten better terms. I had to hire a mediation firm to help me with my mortgage. I tried to get a 722 redememption loan to help me my car, but they could not help me because they do not do business in the state of MS. They said because of our laws will not allow them to help the people here. My dilemma is are there any other lenders who are willing to help me get another car since my car has to go back? The car loan people asked for my stay to be lifted on my vehicle. Will I have give it back before the discharge? I still need a vehicle to go to work in since my husband works out of town all the time with his. Will multiple bK show up on my credit report because I converted. I have the same case number. HEEEEEEEEELP!

[SinkingFast]

I think both the 7 and the 13 will show on your Credit Reports. Someone will correct me if that's wrong.

You'll have to give the cars back when the Court grants the Motion to Lift the Stay. But not until then. And that will quite possibly be before your BK is discharged. The auto Lender(s) will apply for the Motion to Lift Stay almost immediately. And most probably, since the cars are going back, the Court will grant their motion.

I would suggest that you give up the vehicles voluntarily. Don't wait for them to be repo'd. Arrange in advance with the auto loan Lender(s) a designated place to turn in the cars. Many times that's at a dealership. When you turn over the cars, be sure to get a signed receipt from who ever you turn in the cars to. That's a CYA for you that you delivered the cars in good condition. The Lender(s) can't come back later and blame damages on you. No matter that you will discharge the debt in your Ch 7 BK. You just want a CYA and a paper trail of what you've done.

Your best bet would be to buy an old beater or 2 just to get you thru until you get your Ch 7 discharged. More than likely you won't find a Lender that will work with you during an open BK. All Lenders know that you can discharge your debt to them during the 90-120 day period after you file and the simply don't want that happening to them.

[onepowerfullady]

I think both the 7 and the 13 will show on your Credit Reports. Someone will correct me if that's wrong.

You'll have to give the cars back when the Court grants the Motion to Lift the Stay. But not until then. And that will quite possibly be before your BK is discharged. The auto Lender(s) will apply for the Motion to Lift Stay almost immediately. And most probably, since the cars are going back, the Court will grant their motion.

I would suggest that you give up the vehicles voluntarily. Don't wait for them to be repo'd. Arrange in advance with the auto loan Lender(s) a designated place to turn in the cars. Many times that's at a dealership. When you turn over the cars, be sure to get a signed receipt from who ever you turn in the cars to. That's a CYA for you that you delivered the cars in good condition. The Lender(s) can't come back later and blame damages on you. No matter that you will discharge the debt in your Ch 7 BK. You just want a CYA and a paper trail of what you've done.

Your best bet would be to buy an old beater or 2 just to get you thru until you get your Ch 7 discharged. More than likely you won't find a Lender that will work with you during an open BK. All Lenders know that you can discharge your debt to them during the 90-120 day period after you file and the simply don't want that happening to them.

I called the auto lender and I told them that I wanted to arrange me bringing back their car to them. They told me that they are going to hire a repo contractor and have them to call me to meet them at a place so that they can get the car back. I asked her why can't I just take the car back to the dealership, she told me that dealerships normally do not like to be held responsible for the car in that situation. My court case is not until June 20th of this month. Do you think that I should ask the trustee during the hearing if I can go ahead and get permission from them to drop the car off at the dealership. My lawyer ain't hitting on a hill of beans. It seems as if we are doing a lot of the work here. Why is she making us do all of the calling to everyone?

[Minnymouth]

1. Let the lender send his "repo man" to YOU - you are not having the auto repo'd - you are surrendering it..............
2. Get signed receipts for turning the car back from whoever picks it up...... don't let them tell you that we'll send you a receipt......... demand one.... or don't let them take the auto....
3. Bankruptcy filers are NOW responsible for reaffirming their own repayment plans with lenders regarding homes (mortgages) and auto loans.... or anything else you reaffirm on..... NEW LAWS!!! Your attorney is only protecting himself (if he's involved with the reaffirm - he's guaranteeing that you will pay the debt - if you don't he's held responsible for it).... so believe me, they will now make you do your own reaffirming leg work......

No bankruptcy is a simple procedure these days..... many have little problems that pop up and some have "major" problems that come out of the woodwork.....

Take each day as it comes, try to solve the problem, contact your attorney when needed (if he doesn't answer calls - let him know that you need an answer in 48 hours - if you don't get any response - then file a complaint against him with the attorney general of your state and the liscencing board.
Your attorney was hired to represent you - not avoid you.......

Yes, find you a cheap auto to get back and forth to work until the bankruptcy process is finished and closed. Then you will be able to get another auto fairly quickly after bankruptcy. Extremely hard to buy one during the bankruptcy process.

Patience, and breathing deeply, help make the days go better......

[onepowerfullady]

Minny...I have a found a 722 redemption company that is licensed in Mississippi! Yipee. They called me today and asked me a couple of question about my application that I submitted online. They told me that they will be giving me a call back on tomorrow late afternoon with an answer. I wonder if that looks good or not. I am sure that if they could not help me that they would have told me up front that they could not help me, huh? I feel pretty good about this....

[Minnymouth]

Yep - the 722. redemption just might work for you if you want to keep the vehicle................ only problem I see is your behind on the payments...... maybe they will work something out with you.....

Good luck, keep us posted.

[onepowerfullady]

So its normal for them not to help people when they are behind on payments on the car. That's the whole reason for helping someone out so that their car will not be repossed right?

[Minnymouth]

The whole idea of the 722 is to help you get a car that you can afford if your surrendering one back to the bankrutpcy court......
If you are behind on auto payments NO ONE will help you except the auto company (and that's unlikely) or doing a Chapter 13 and having the arrears on the auto payments put into the 13 plan.....

Thats one reason we STRESS keep your mortgage/auto/utilities payments current during your BK process............

Contact the auto company and see if they will work with you, maybe sign a reaffirm and attach the past due payments at the end of the payment schedulel

Keep us posted

[onepowerfullady]

Well...the 722 people would not help because of the debt to income ratio and the repo man wants my car before my stay was lifted from the vehicle. My hearing is not supposed to happen until June 20th. Can they get the car back before then? He called today so that he could get my car. I guess I am going to let him get my car on tomorrow because I don't know what else to do. I have no extra cash to even get a beater to even drive around in so that I can go to work everyday. I am going to cry because this whole situation is crazy!

[meme]

It will get better. And if you have to cry go ahead. I'll be crying with you tonite. I feel so backed in a corner. My appt to convert isn't until friday. That means i won't get any money for at least another 3 weeks. And if they are trying to get your car, i know they will be out to get mine. So there is one more issue for me to stress about.

[onepowerfullady]

I guess we will have to cry together. I just filled up my tank on yesterday and took 40.00 to fill it up and I am waiting on 8:00 to get here so that I can call the bank and the lawyer to see what's going on....

[meme]

i don't think they can take your car before the creditors meeting

[onepowerfullady]

Well they have my car. I surrendered it. I met the repo guy at Walmart got him to sign off on a report saying that I gave the car back in good condition free of any signs of wreck and damages. I handed him my keys and that was the end of it. We had to fork up some change to get me a rental until I can find an old beater to drive around in until after we are discharged. My 341 meeting is on Wednesday. Is the meeting going to be the same for a 7 as it is for a 13? I wonder if they are going to make my husband surrender our taxes for next year?