Possible conversion to Non-Consumer BK7

[AZNoName]

I contacted my atty and a conversion from CH13 to Non-Consumer 7 might be possible (he has to review my petition first).

What happens to my non exempt assets? I assume we'll lose the camper (no big deal), but my DH truck is worth about 5K over the exempt amount. If the court takes his truck, how will he be able to get around? Could we buy back the non-exempt amount?

We also had an old 1955 project vehicle (non titled) which was worth a few thousand, which were in the process of selling (getting ready to move). will the Ch7 trustee want that money?

So confused!

[HHM]

Yes, non-exempt assets would be at risk.

For the truck, yes, you could buy it back assuming you had the resources to do it or could get a redemption loan.

[justbroke]

Conversions are so special. First, you'll need to revisit all the non-exempt assets that you were planning to "keep" in the Chapter 13. If something was actually exempted for the Chapter 13, it is exempted for the Chapter 7. However, if you had an asset at the time of filing that was not exempt and not completely exempted on the schedules, you will need to deal with that fact.

I hope that you're able to work something out with the truck. Are you still paying it off or do you own it outright?

[AZNoName]

I hope that you're able to work something out with the truck. Are you still paying it off or do you own it outright?

We own it outright. It's worth about 15K (exemption amount is 10K, so 5K is non-exempt) We do have the resources to cover the 5K if needed. I'm sure to keep you updated on how it goes!

[nohoneymoney]

I contacted my atty and a conversion from CH13 to Non-Consumer 7 might be possible (he has to review my petition first).

What happens to my non exempt assets? I assume we'll lose the camper (no big deal), but my DH truck is worth about 5K over the exempt amount. If the court takes his truck, how will he be able to get around? Could we buy back the non-exempt amount?

We also had an old 1955 project vehicle (non titled) which was worth a few thousand, which were in the process of selling (getting ready to move). will the Ch7 trustee want that money?

So confused!

It is a shame your attorney didn't inform you about non-consumer BK7. I'm guessing your filing was tailored to maximize your benefits under Bk13 which might not be optimized for BK7. A good example will be that project car. It will in all likelihood be viewed as a asset by the trustee and there is not time to sell it and use the money to fill the pantry, etc. However, it is probably not worth as much as you think it is. Look up forum threads on pricing assets.

You haven't mentioned a house. Do you own a house or are you renting?

If you can swing it, I recommend a non-consumer BK7 since it does not involve assumption of abuse, means test, DMI, income or expenses.

[AZNoName]

I don't have any assets worth having a 1K/month (5 year) trustee payment! We're surrendering our house (120K underwater), and have a camper (worth 5K), truck worth 15K (5K is non exempt), project truck worth maybe a thousand, which were actually selling this weekend.

I was a bit put out that the attorney didn't tell me about this option. We were strictly Ch13 because of the income above median.

I presume this will mean we're an asset case. Not sure how difficult it will be to get through this...

Anyways, no point in speculating until I hear back from an attorney and find out how this will all play out!

[jst4f]

It could be there are details about your case that drove your attorney to advise a BK13. I recommend that you get your facts lined up and questions ready for that meeting with your attorney. Use this forum to get background information and there are several books recommended by forum members for you to read. Be an informed consumer for your non-consumer BK discussion.