Filing chapter 13, can not repay then file a 7, Anyone else do this?

[Flowers]

sorry for the confusing name of the thread...

my income and equity in my home does not allow me to file 7.
However my income will not cover the payments for chapter 13.
Thus I will have to go through the "backdoor" and file chapter 13 and then it will convert to a 7

ANYONE ELSE HAVE A SIMILAR SITUATION?

[keepmine]

The code allows for a conversion but, you'll lose your house.
Unsecured creditors can't get less in a 13 than, they'd have gotten in a 7.

[Frogge]

This may be what we have to do, not sure yet. What has been explained to you about how this will work? Is your income way above median? We are above by about $13k

[lrprn]

my income and equity in my home does not allow me to file 7. However my income will not cover the payments for chapter 13.

If the equity in your home won't allow you to file Ch 7, then it probably won't allow you to file Ch 13 and not have to pay the excess equity to your trustee either. Both bk chapters use the same bankruptcy exemptions.

Have you discussed your financial situation with at least one bk lawyer in your area? Or are you figuring out which chapter you can and can't file on your own?

[justbroke]

Ahh... the good old Chapter 20 is back in fashion again! (That's where you do a Chapter 7 to stop collections and save the house... then do some re-arrangement of debt and things... then file a Chapter 13.)

[lrprn]

Ahh... the good old Chapter 20 is back in fashion again! (That's where you do a Chapter 7 to stop collections and save the house... then do some re-arrangement of debt and things... then file a Chapter 13.)

The OP is not filing a "Ch 20". They have already filed a 60-month Ch 13 then after 36 months their lawyer intends to amend the plan to end it after 36 months and still pay 0% to unsecured creditors.

[justbroke]

The OP is not filing a "Ch 20". They have already filed a 60-month Ch 13 then after 36 months their lawyer intends to amend the plan to end it after 36 months and still pay 0% to unsecured creditors.

Ahhh. I always wanted to see what a 20 was like.

I didn't see where the OP said they were in a plan and waiting the 36-month mark. Maybe that was a different thread.

In any event, yeah, the 36-months is the magic mark where you can petition to have the case deemed complete and seek a discharge. I know that on plans which do not pay the creditors back at least 70% (and the 70% had been paid), they won't let you do this.

However, on 0% payback plans... it will be interesting.

I sincerely hope the OP keeps us informed on the progress and ruling.

[Flowers]

I have an attorney and she explained that my means is too high, roughly $10k. And that the court will see that I will not have the means to repay.
Now I do have 20% equity in the home.

what is OP?

[Frogge]

OP = Original Poster

[keepmine]

I have an attorney and she explained that my means is too high, roughly $10k. And that the court will see that I will not have the means to repay.
Now I do have 20% equity in the home.

what is OP?

If, you don't qualify for a 13 and, have excess equity in your home then, don't file for bk of any chapter.
Sell your house and invest the proceeds in assets that are exempt from creditor seizure like, IRA's, some types of insurance annuites,etc. Talk with a few other lawyers. This one sounds like they're trying to generate a fee with no real protection for you. Has she explained what will happen to the house with the excess equity?
Break it down in $'s. How much equity do you have and, how much does your state exempt?

[Flowers]

This continues to be the round-about conversations with my Bk lawyer:

Her:
"You do not have the means to payback for a ch13".
"Your income is over the means by $10k".
"The court will throw out your BK13 petition because of inability to pay but you can not file a ch7".

Me:
"I have to file some sort of bankruptcy."
while I am thinking: :"can we stop talking about this and file already? I want to stop the collections calls, and I no longer want to discuss any of this." ugh.

[paintinrosesred]

Maybe you should ask the advice of another atty? How frustrating is that!!!