Negotiating while in chapter 7

[rockobuster]

I was wondering if the trustee thinks your disposable income is too high and refers this to the US Trustee, if there can be any kind of negotiating with the US Trustee and my lawyer to keep in a chapter 7, and not be converted to a chapter 13?

Also, does anyone know if you bought exercise equipment at Sears for $1200 and paid $400 on it, is this a secured or non-secured debt?

[HRx]

My guess is Sears credit cards are secured...........becuase they sell different types of appliciances. I'm willing to bet that the majority of consumer use thier sears cards to purchase appliances, because they can't afford to buy them cash. If you call the customer service number on the back of the card, they'll be able to tell you if the card is secured or unsecured.

Your petition can be converted to a 13 if you didn't demonstrate insolvency on your petition. If you used an attorney to prepare your Chp7 petition, he/she should've ensured that your petition reflects insolvency. And communicated to you from the get-go if you can't.

Good Luck!

[HHM]

If you acquired Sears card as part of the purchase of a major appliance or other high ticket item, odds are its a secured debt. If you have had a Sears Card for many years, and merely purchased a high ticket item using it, then it MAY be unsecured. However, if I were betting, I would bet that the debt is secured.

If the trustee thinks you have disposable income, its would be difficult to negotiate with him/her to say that you don't have any unless you can prove that you don't have any. Typically what you can negotiate is the amount of disposable income available when you enter a chapter 13.

Hopefully it works out one way or the other.

[rockobuster]

We have had a sears charge card for 20+ years and did not owe anything on our account when we made a purchase of exercise equipment ($1200). We bought the equipment on a no down, no interest for 6 months. When we filed on the 4th of April I went ahead and made a $200 payment on the 1st, (that was when the first payment was due) and another payment of $200 on May 1st. I told my attorney that we were only going to stop making payments on the credit cards, and when we did not receive a statement for June I called Sears. They told me since this was in bankruptcy they do not send out an invoice and to call my attorney. When I called our attorney he said since this was put into the non-secured bills that I should not pay anything toward Sears anymore.

I would think that if we have to convert to a chapter 13 that the amount the courts would pay them would be $800 and not $1200 since I sent them $400?