Im in chapter 13 converting to a chp 7 this month but defaulted on a payday loan?

[doc20002001]

Im in Chp 13 that went into effect in june 2013 last year and last august 2013 took out a loan with check and go and ended up defaulting on it, it ended up going to collections and im currently paying $50 per month to them, my lawyer is asking me for all my new bills so we can convert to chp 7 BK as my income dropped and im now eligible, my question is since i took the checkngo loan out without telling the trustee last year will i get in trouble and since im converting to a chp 7 will it even matter or will the trustee discharge my 13 and not let us do the chp 7. I havent said anything to my lawyer yet about the checkngo loan, i pulled my credit reports from all 3 credit places and it doesnt show up, also our lawyer told us to buy a new car right before we were going to file so we will turn the car over when we get the bk approved how long will it take from the time the lawyer files till we have to give the car back. BTW i live in illinois

[justbroke]

Yes, you should, can, and must include this debt in the Chapter 7 conversion! Your attorney will file new schedules A-F (as necessary), a new Statement of Intentions and maybe a new Means Test if required by your District.

Tell your attorney! There should be nothing that your attorney does not know about your finances.

[TXskyblue]

+1 on not hiding anything from your lawyer. Your lawyer is the one person you should always tell the truth to. Your lawyer cannot help you unless he or she knows the complete, unspun truth.

Yes, taking out the payday loan against the order of the court was wrong, but complicating it by withholding it from the one person genuinely trying to help you isn't productive.

I sincerely doubt you're the first person who has ever done this so your lawyer should be able to tell you what this means for you. My opinion is that since you are converting to a chapter 7, it is irrelevant other than that you must list it on your schedules. I have no direct experience with this though.

[LadyInTheRed]

Good things come in threes, including good advice. Don't hide anything from your attorney, especially when you think you did something you weren't supposed to do.