Ch. 7 Meeting of Creditors

[brtb]

So, I have officially converted my half of a joint Ch. 13 bk to a Chapter 7 asset case. My meeting of the creditors is in exactly a month.

What can I expect? The Ch. 13 meeting of the creditors was a breeze. Hope this one will be just as easy.

I'm surrendering my portion of a jointly owned house. Still now sure how it's all going to work out.

Thanks!

[justbroke]

The Chapter 7 case is a breeze also. If your Chapter 13 vested all property to you, the debtor, and you acquired no new property since the Chapter 13, then it's usually a very easy meeting. I was asked 3 questions.

[brtb]

Thanks Justbroke. Since filing Ch. 13 in 2011 my current credit score is in the upper 600s. What kind of credit hit can I expect to take now that I've converted to 7? When can I start rebuilding?

[justbroke]

You will have no credit hit. In fact, my credit score was pretty good after discharge (around 640). I was only in my Chapter 13 for just under 2 years.

[brtb]

Now, I'm wondering when the Ch. 13 trustee will notify my employer to stop garnishing my wages. Soon, I hope.

Also, mine is an asset case, so I have no idea what else to expect even after discharge. I've read asset cases can take a while.

[justbroke]

Ummm... in many cases, it is not the Trustee's responsibility but the Attorney's responsibility to file a Motion to Vacate Wage Order!

[brtb]

Ummm... in many cases, it is not the Trustee's responsibility but the Attorney's responsibility to file a Motion to Vacate Wage Order!

Thanks for letting me know! I'm going to email my attorney.

[justbroke]

It differs by District, so I just wanted to let you know. You should also be asked to do some certifications in order to receive your discharge. Again, these are District specific, but your attorney should guide you through the process.

[btaylor1184]

advice is to watch pacer for that order. Your payroll only needs to see that order.

[brtb]

My attorney sent me the "Order Upon Conversion", where it clear states that:

7. [If applicable] If the joint debtor has been making payments by payroll deduction, the employer as set forth in the order for payroll
assignment shall cease any payroll deductions for the benefit of the Chapter 13 Trustee.

He told me that Payroll needs to cease deductions so I took that to the payroll department and they said that the order wasn't sufficient. They need an actual release letter from the court. I emailed my atty to advise. This is ridiculous! Why would they need more. I could really use that extra money in my paycheck.

[justbroke]

As I wrote earlier, you may need an Order Vacating Wage Deduction Order. Almost every (smart) employer will only take an order from a Judge. A "Notice of Conversion" mentioning that an employer should stop wage deduction is not an order of the court.

If the Wage Deduction Order was originally a standalone order, your payroll and legal department may need it set forth similarly.

[brtb]

As I wrote earlier, you may need an Order Vacating Wage Deduction Order. Almost every (smart) employer will only take an order from a Judge. A "Notice of Conversion" mentioning that an employer should stop wage deduction is not an order of the court.

If the Wage Deduction Order was originally a standalone order, your payroll and legal department may need it set forth similarly.

Thanks for the clarification. Still waiting to hear back from my atty.... What will happen to the money that still gets sent to the trustee post conversion. He currently has $440 on hand.

[brtb]

Gets even better. The joint Chapter 13 plan is severed and guess what? I'm now funding my deadbeat husband's Ch. 13. Still haven't heard back from my atty or the Ch. 13 trustee on getting the payroll deduction stopped.

[brtb]

I had my 341 meeting today. I can't tell how it went. The trustee didn't even bring up the house. However, she was interested in the the trust that I have interest in. There is a "No Alienation" clause in the trust. She was on the fence on if she would pursue or not. She was hard to read. Then my income came up. I have steady employment and my income is a little on the higher side. I don't know what to make of it all.... If I don't get the discharge then I guess I will be back (in my own) Chapter 13 plan.