Now Chapter 7

[justbroke]

Just in case anyone is watching my signature line. I have motioned the court to convert my case to a Chapter 7 case. That was granted today so I'm busy doing first day motions (motion to redeem, statement of intentions, statement of executory contracts, statement of new debts, etc, etc).

In any event, I've been busy, as you can now see, and I just finished serving the world, it seems. Hopefully I'm successful, but the deck is stacked against me being over-the-median (almost 3 times), over $100K in unsecured debt, housing that costs 40% of my gross income (but some is due to escrow shortage so it's really 35%), and coming off a Chapter 13.

I have some things worked out (redemption on one car, reaffirmation on the other), but still working my modification with the mortgage company, so that's the nail-biter. I'm also ready to fight the UST's sure-to-be-filed 707(b)(3) motion... so...

Wish me luck.

[kornellred]

Holy cow! If anyone can pull this off, it has got to be you. This is really going to be interesting - keep the forum informed. Will failure to have your case converted lead to the dismissal of the Chapter 13? Probably not, or you would be ill-advised to make the attempt....

[AngelinaCatHub]

Just in case anyone is watching my signature line. I have motioned the court to convert my case to a Chapter 7 case. That was granted today so I'm busy doing first day motions (motion to redeem, statement of intentions, statement of executory contracts, statement of new debts, etc, etc).

In any event, I've been busy, as you can now see, and I just finished serving the world, it seems. Hopefully I'm successful, but the deck is stacked against me being over-the-median (almost 3 times), over $100K in unsecured debt, housing that costs 40% of my gross income (but some is due to escrow shortage so it's really 35%), and coming off a Chapter 13.

I have some things worked out (redemption on one car, reaffirmation on the other), but still working my modification with the mortgage company, so that's the nail-biter. I'm also ready to fight the UST's sure-to-be-filed 707(b)(3) motion... so...

Wish me luck.

Hey Bro, Grats. Now if you need any advice at all, any at all, please don't hesitate to call upon us. Yes us, we are pros in making any mistake possible in bk and getting by. Hey, this is great and I wish you well. 'Hub and Mrs.

[HakunaMatata]

Wow! Go get 'em JustBroke!

(Hey, will your name change when you're successfully discharged from Chapter 7?!)

Wishing you the best!

[justbroke]

Holy cow! If anyone can pull this off, it has got to be you. This is really going to be interesting - keep the forum informed. Will failure to have your case converted lead to the dismissal of the Chapter 13? Probably not, or you would be ill-advised to make the attempt....

My case is converted. The order has already been made, and PACER shows it as a Chapter 7 case. Now, if the UST is successful in their attempts to dismiss the case, I could convert it back to a Chapter 13 or allow it to dismiss.

We'll just have to see how it plays out!

[justbroke]

Hey Bro, Grats. Now if you need any advice at all, any at all, please don't hesitate to call upon us. Yes us, we are pros in making any mistake possible in bk and getting by. Hey, this is great and I wish you well.

I'm certain I will have questions as this progresses. Particular around the obvious UST attack that is coming. My 341 Meeting is next month (already scheduled)! I am sure I'll meet the USTs attorney at the 341 Meeting. I just want my 341 Meeting to go smoothly and not be continued. That would just blow my mind.

I just finally realized, especially with the payment increase, that I need to just put my cards on the table. I qualified for a Chapter 7 in the beginning, but I was trying to save my rental property. I never was trying to save my homestead. So, after 19 months, I've decided that I'm in a Chapter 13 that was never intended for what I ended up doing. I'm basically in a Back Door Chapter 7, but the Trustee doesn't communicate with me and I've had issues with my Trustee payment. So, I'm just going to liquidate and be done.

Thanks for the support!

[justbroke]

(Hey, will your name change when you're successfully discharged from Chapter 7?!)

Actually, if I reaffirm or otherwise get to modify my homestead, I still won't have a bunch of money sitting around. At least I won't be paying the Trustee over $600/month when I'm more than $450 in negative DMI!!!

I mean, the Chapter 7 discharge isn't going to substantially improve my life due to reduction of income, loss of bonuses, and no pay increases in the foreseeable future (I'm overpaid, apparently).

[frogger]

I qualified for a Chapter 7 in the beginning, but I was trying to save my rental property.

First of all, let me state that I have the utmost respect for you and your postings and opinions. With that being said however, trying to save your rental property was probably not the thing to do.

I think that you've figured it out now. I know for sure that I figured it out......

Hopefully, all of the current landlords that are considering trying to save their rentals will really take a hard look at what they are trying to save.

The rental business can be rewarding, however with the economy the way it is, and people the way they are, it is not rewarding in my area anymore. Between the meth/crack heads, the vandals, the gang-bangers, and the general hoodlums, vacant properties (rental and otherwise) are being stripped and destroyed within a week or two of going vacant. Personally, I had five houses destroyed in 2009. That was the final straw for me.

I wish you the best. You're on top of things and I'm sure that you can make some very good arguments to support your cause. Keep us posted on how it is going.

Good luck!

[justbroke]

With that being said however, trying to save your rental property was probably not the thing to do.

Absolutely not, and I have been and will continue to question posters who want to save them! They are nothing but a pain in the neck in a Chapter 13. Especially when they are empty, and the Trustee wants the money, as does the lienholder! Add to that, being about 400 miles away from the property, and you have the perfect storm!

Of course I made up excuses, even to the Trustee, that I eventually wanted to move into the property as my homestead. LOL! I mean, I bought the place for investment and as a rental, but I'd actually never live where it is located. I just don't like the area.

[lrprn]

Glad to hear that things are going your way, JB! And as far as making a misjudgment trying to keep your rental property, well, hey.....we all learn lessons the hard way sometimes. The silver lining is that those hard-earned lessons stick the best.

I have a feeling you'll be discharged in no time once all this swirl with the UST runs its course. We're rooting for you 100%!

[ryan]

JustBroke, I have stayed up late at night and read as many of your posts as I can (admittedly you have alot) :-)...

.....and I'd bet hands down you will be able to ''thread the needle' on this and come out pretty good. You have so much knowledge about the whole topic it's unreal.

I know going thru this process myself, i'd love to have YOU in my corner.

[justbroke]

Thanks guys. I know that I have you all and your collective experience in my corner. I'm in un-chartered territory and have never been up against the United States Trustee himself. Should be fun... I'll get to wear a suit to court again.

[LimpDisc]

Good luck!

I haven't been on the forum that much the last few days and was puzzled when I noticed your signature.

[tmoschetto]

Best of luck JB! If anyone can do this, it's you. I'll be watching for updates!

[justbroke]

Well, I tell everyone not to worry and to sleep, but I didn't get to sleep until about 5AM this morning. I've been doing a ton of research and caselaw study on a variety of topics that I was already versed in, but wanted something more specific and relevant within my District and Circuit Court of Appeals.

So, do as I say... not as I do!