Another hardship question

[Lacy]

Thought I give everyone a update on how my appointment went today... First off the attorney wasn't even there. Instead talk to a paralegal there which faxed my info I brought in to another attorney that is in a another town. I asked the paralegal a few questions and she couldn't answer any of them. She said she had worked there for 2 years and never seen a hardship case come through their office. She is suppose to call me tomorrow and tell me what the attorney says she faxed my info to... So in other words I know nothing more than I did yesterday.



I am really concerned about this attorney office I am dealing with being they cant seem to give me any answers. And plus being I was suppose to see the attorney and he wasn't even there. Every time I have phoned he is never there either. They are the ones who filed my BK13 so that's why I went to them. I am just afraid that they may not be able to give me proper council....... Now do you all think I need to be a little concern here with this attorney's office ?

[CindyLou]

Lacy,
Hi. I haven't been around much lately, but read you post and wanted to first, say I am sorry about your husband's passing. Then I wanted to ask if you had checked to see if he had credit life on his loan? Just a thought.

[Bandit]

Now do you all think I need to be a little concern here with this attorney's office ?

Kind of yes. The guy does not even keep appointments.

I know the first one I called only did ch7 no asset cases & nothing more. Well, I was not comfortable with that or his smug attitude.

I feel what happens is, not all attorneys are experienced in every chapter and every possibility in a BK. Seems like a big wasted appointment, I know. I would go down through the yellow pages and see if there are any listed with hardship experience.

IN the least just take a day to write out all your concerns on paper, then get on the phone and start calling attorneys (all of them if you have to) until you get one who can answer all the questions you have now. Hardships have to be proven to the court so it is not a real easy yes or no answer, but an experienced attorney will be able to know where you stand. Maybe look for someone with over 30 years of BK for starters.(?)

I am not telling you what to do, just explaining what I would do after that visit. No sense in driving around driving yourself crazy getting nowhere when you can still get a good feel for them over the phone and get the same thing accomplished.

[Bandit]

Of course I do not know the entire situation but I was wondering, Lacy

Have you thought about going straight to the Trustee and explaining how so much has changed since the original payment plan? (I am not saying to do that, just wondering what you think).

I can't help but wonder if the payment itself would be brought down a considerable amount or if it could be converted to a 7.

Or do you prefer it to stay 13?, since it is so close to being over.

Now that the house is taken care of, this is real hard to figure out what is the best thing. I am starting to see some options and how complicated this really is to take the best course of action.

*shaking head*

[Lacy]

Lacy,
Hi. I haven't been around much lately, but read you post and wanted to first, say I am sorry about your husband's passing. Then I wanted to ask if you had checked to see if he had credit life on his loan? Just a thought.

Yes we did have credit life on his vehicle loan. But unfortunately it expired about a year ago. So I take it if we hadn't filed BK it would of already been paid off last year.

[Lacy]

Of course I do not know the entire situation but I was wondering, Lacy

Have you thought about going straight to the Trustee and explaining how so much has changed since the original payment plan? (I am not saying to do that, just wondering what you think).

I can't help but wonder if the payment itself would be brought down a considerable amount or if it could be converted to a 7.

Or do you prefer it to stay 13?, since it is so close to being over.

Now that the house is taken care of, this is real hard to figure out what is the best thing. I am starting to see some options and how complicated this really is to take the best course of action.

*shaking head*

Yes I did contact the Trustee and told them and they told me to contact my attorney... The paralegal yesterday did mention something about maybe having my BK now dismissed and refiling. I really dont want to have to do that. But may not have any other choice but to. I have my car loan too that I am having to pay and I really cant afford it.

I just feel so frustrated and just dont know what to do. I feel like I cant get any answers on what is the best thing for me to do. Because I dont know anything really about BK and I'm having to rely on them to tell me what is best. And not so sure I trust them to tell me what is best for me.






( And so far today they have not called me back to tell me what the out of town attorney said. )

[finvik]

Get a decent attorney who can actually help you in proving Hardship, that can help you in getting out of this. let me study a little more and i will get back to you
Vik

[Lacy]

Get a decent attorney who can actually help you in proving Hardship, that can help you in getting out of this. let me study a little more and i will get back to you
Vik

Thank you for offering to look into it for me. Because I am clueless on what to do and not very smart when it comes to the law. And also in understanding what a lot of it even means. I am not the smartest here... in fact probably the dumbest to ever hit this forum .... So any type of help or advice would be GREATLY appreciated.





*update*
They never called me so ended up calling them. Paralegal said she hadn't heard back from the attorney. Said she call me tomorrow.

[Bandit]

Here is a good read for hardship & those in a 13. I was trying to locate more info for your area & hardship cases but felt like an 8 ball all over the pool table never making a pocket.


http://www.************************/...hip-discharge/



I am pretty sure concerning the homestead exemption in the Lone Star, you will be safe no matter what you do. It sounds like the vehicle is the biggest concern with getting a 13 dismissed & refiling for a 7... (I dont blame you there).

I am not the smartest here... in fact probably the dumbest to ever hit this forum

Not hardly. You are not dumb, just learning & keeping up with the law like the rest of us.

[Lacy]

Bandit thank you very much for sharing that with me.

From what I just read in that article you would think I would qualify for a hardship discharge.



Third, your general unsecured creditors had to receive at least as much in Chapter 13 distributions as they would have received in a Chapter 7 liquidation. .... I really dont understand that part though.

[keepmine]

With only 8 payments left, noway should you try and dismiss and then refile a 7.
Just stay patient yet, persisent in getting some help from your lawyer. I'd suspect that the auto loan is likely paid off and with the trustees permission, prehaps sell/surrender the vechicle and payoff the balance of the unsecured.

[AngelinaCat]

Ms. Lacy, please hang in there. It's a little late for me here, but I will do some research on your question tomorrow.

Generally, rule of thumb in payments to creditors:

1. IRS, and state income tax. You are in Texas, so you don't have that.
2. Child support--those type of things.
3. Secured loans--your husband's vehicle
4. Unsecured debt--CCs, and the difference from repo'd and sold at auction items.

I also am very sorry to read of your loss. Love and *HUGGS* to you!

[FreshLikeADaisy]

Lacy, no, you're NOT stupid. Most of us here had to learn this stuff from scratch, just like you, so don't feel bad.

Agreed with Keepmine and others -- do NOT dismiss! You should be aware that you can ***CONVERT*** a 13 to a 7 if you circumstances change during the course of a 13 so that you become eligible for a 7. If for whatever reason you do not qualify for (or receive) a hardship discharge, you could convert it to a 7 without a whole lot of hassle, provided you now qualify.

I am really sorry about your atty not being there for you. It's a harsh situation because your life is in his hands, in a way. But you're doing the right thing by looking into it yourself and learning all you can, even if it doesn't seem like much: every little bit helps to make the right decisions.

I wish you every success!!! Good luck!!!

[AngelinaCatHub]

Lacy, no, you're NOT stupid. Most of us here had to learn this stuff from scratch, just like you, so don't feel bad.

Agreed with Keepmine and others -- do NOT dismiss! You should be aware that you can ***CONVERT*** a 13 to a 7 if you circumstances change during the course of a 13 so that you become eligible for a 7. If for whatever reason you do not qualify for (or receive) a hardship discharge, you could convert it to a 7 without a whole lot of hassle, provided you now qualify.

I am really sorry about your atty not being there for you. It's a harsh situation because your life is in his hands, in a way. But you're doing the right thing by looking into it yourself and learning all you can, even if it doesn't seem like much: every little bit helps to make the right decisions.

I wish you every success!!! Good luck!!!

[Bandit]

Bandit thank you very much for sharing that with me.

From what I just read in that article you would think I would qualify for a hardship discharge.



Third, your general unsecured creditors had to receive at least as much in Chapter 13 distributions as they would have received in a Chapter 7 liquidation. .... I really dont understand that part though.

I think this is better understood by a metaphoric example.

In a 13 you pay back some of the debt by wages & you get to keep the assets. Right?
In a 7 you pay back some of the debt by giving the assets to the court, they sell the assets & give money to the creditors. Yes?

Picture a scale and balance beam.
On the left side, Put all the money you have paid in your ch13 plan with wages.

On the right side, Put what your worth of the assets are if you had given them back & paid that way in a 7.

a)If they balance you are good to qualify.
b)If what you paid in the 13 weighs more than the 7 liquidation, you qualify.
c)If the value of the assets through a Ch7 is worth more than what you paid in your 13, then you wont qualify.