Long time lurker new 13 convert to 7 today

[btaylor1184]

So today I paid to convert my 13 case to a 7 case. I lost some income and feel this is best. ? though is what happens to money on hand that the trustee has? Will it be paid out to the creditors?

Learned so much from this and Hope to never be in this spot again. This has tore my nerves up. I will be glad when its all over.

[AngelinaCat]

Hi btaylor1184, welcome to the Forum:

How long were you in the CH13? How much money have you paid in? Did you file with the help of an attorney, if so what does he/she say? A few more details such as these will help the membership formulate answers and suggestions for you.

My husband and I were an Asset CH7 case. Not all of our possessions listed in our filing papers were covered by Florida's meager Exemptions. So we had to pay $450.00 a month to the trustee for a year to purchase our non-exempt assets back from the BK Estate. That was at a discounted price that he offered us.

So depending on your situation, the money you have already paid in may be distributed to your creditors, as our payments were to ours. In our case, our major creditor was the IRS. Everyone else lost out. But we did not convert from a CH13 to a CH7 as you have done, so I cannot answer your question directly.

Look for posts and threads by Justbroke. He did convert a CH13 to a CH7, and he did all of this himself without the services of an attorney.

Good luck to you!

[justbroke]

So today I paid to convert my 13 case to a 7 case. I lost some income and feel this is best. ? though is what happens to money on hand that the trustee has? Will it be paid out to the creditors?

Learned so much from this and Hope to never be in this spot again. This has tore my nerves up. I will be glad when its all over.

The Trustee is allowed to disburse what was due based on what s/he had on hand at the time of your conversion. In some Districts, the Chapter 13 Trustee believes that s/he needs to turnover the funds to the Chapter 7 Trustee, but this is not really the thing to do. In other cases, the Chapter 13 Trustee turns over the funds to the debtor's attorney. Typically, when the Order of Conversion is entered, it will contain the amount of money in the Trustee's hands and list what amount is to be returned to the debtor.

[btaylor1184]

Thanks Justbroke.


I paid 15k into a 50k plan. We are surrendering everything. I thought the chapter 13 was ethically what I needed to do. But even after the attorney has talked to some of the creditors and even went back to court over calls and visits to my work they keep on. So I said forget it. I will walk away from it all. Get my sleep and sanity back and come out debt free!!! I have learned some very hard and valuable lessons from this! I will be the king of penny pinching. I now know why having cash and emergency funds are so important.

[AngelinaCat]

Thanks Justbroke. I thought the chapter 13 was ethically what I needed to do. But even after the attorney has talked to some of the creditors and even went back to court over calls and visits to my work they keep on. So I said forget it. I will walk away from it all. Get my sleep and sanity back and come out debt free!!! I have learned some very hard and valuable lessons from this! I will be the king of penny pinching. I now know why having cash and emergency funds are so important.

We also tried to do a CH13, because it was the moral thing to try to pay back at least some of the debt. But when I lost my FT job, and 'Hub lost his major consulting job, a CH13 became impossible.

We had no choice but to do the CH7. In retrospect, it was the best thing that happened to us, all around. I'll bet that when all of this is over and you have a few years behind you, you will feel the same.

[justbroke]

I was in a Chapter 13 as well, for 2 years and some $120K later... conversion to Chapter 7!