Chap 7 Bankruptcy

[Life?]

Hello

Question Can any one tell me about going from a chap 13 to a chap 7. Also how fast can i get approve for things to rebuild my credit after a chap 7?

[Minnymouth]

If you are in a Chapter 13 plan, you cannot just change your mind and do a Chapter 7........ It will have to be approved by the Trustee.....

You are usually in a 13 to keep your assets and protect your equity in your home..... as Chapter 7 is complete liquidation of your assets...

Building credit after both Chapter 7 and 13 takes times...... you can start with a low balance credit card such as Orchard, Hooters, etc..... Normally you can buy a home in 2-3 years depending on credit score and history.

[JeepMom]

Rebuilding depnds on where you stand prior to chap 7. We filed 6 months and we are getting a mortgage now.

[Life?]

well i been in a 13 for 2years but that comes out of my husband check I am a nursing student with 3 kids and no full time job I have talk to my lawyers and the companys that our vehicles are with. I am just tring to understand a little more about a chap 7 before i decide

[Life?]

Jeepmom did you file a chap 7? and in what state?

[onepowerfullady]

If you are current on your property, such as your cars then you should be fine with keeping your property. You will have to reaffirm your debts if you wish. You are going to have to get in touch with your creditors to let them know that you want to reaffirm those car debts. Your atty will receive the paperwork from your creditors and then you and the atty with sign off on it. I think you have like 30 days to resend the reaffirmation if you decide that you do not want the property. If you are not current then as soon as they get notice that you have converted to a 7, believe me they are going to ask the automatic stay be lifted so that they can make arrangements to get their property back and sell it.

As for the unsecured debts they will be wiped out completely. My advice to you...if you are allowed the opportunity to convert to a 7 and get your papers from your BK saying that you are now converted to a 7...go ahead and start cleaning up your credit report so that when you are discharged you will have a good portion of your stuff already cleaned up. Good luck and I pray that things will work out for you and your family!!!

[Life?]

onepowerfullady I talk to ford they told me that I would have to back pay them for my car. Which i don't understand b/c id their being bad thru my chap 13 now why would i have to back pay them?

[Minnymouth]

If you were behind on payments when you filed your 13, then those payments were added to your Chapter 13.......

Until those payments are caught up or paid off you are still not current on the auto payments..... and you must be current to reaffirm in a Chapter 7.....

See how much you back owe and see if you can come up with it.....

[Life?]

That is just It I am current i made my last car note payment 2 years ago a month later my chap 13 started coming out of my husband check so there never was a payment missed

[onepowerfullady]

When you were in your Chapter 13 you did not pay interest on your note. Everything you pd was going towards the principal. So Ford may want their interest on the vehicle. Find out how much you owe them. I hope that its not an arm and a leg.

[JeepMom]

Jeepmom did you file a chap 7? and in what state?

I filed joint 7 with hubby in IL.