Stuck between a Ch 7 & Ch 13?

[laurannm]

Is it possible to have your Ch 7 dismissed (due to failing the means test or totality of circumstance, not fraud or anything serious like that) , but yet still not have available income to fund a Ch 13?

In other words, even if you are negative on your schedules, I always assumed that if the UST dismissed your case because they felt you had x amount of $ in disposable income, you could then adjust your expenses so that you could at least fund a plan that was equivalent to whatever # the UST came up with.

Am I thinking correctly?


Thanks

[Phillymanhere]

You might have to rephrase this. I get lost in the second paragraph. But I'll take a swing at it.

My understanding (I'm a newbie) is that the U.S. Trustee has a great incentive to come up with a reasonable monthly payment amount for a chapter 13 (reasonable as in not ridiculously high) so that you can indeed make the payments.

As I understand it, when people are pushed into a 13, it is not because of fraud.

Still I'm not sure I'm getting the question. But just because the trustee objects to a chapter 7 doesn't mean he's accusing you of fraud.

[Cali]

I thought I read somewhere you could have a C13, and the only people paid are trustee/attorney.

[Help!]

I'll know the answer to that soon.

[kornellred]

You cannot file for Chapter 7 unless the means test proves that you can. That was the whole idea behind the October 2005 reformation of BK law.
A Chapter 13 filing will not be confirmed unless the proceeds are equal to what the creditors would receive in a Chapter 7 after all is said and done.

How borderline cases are dealt with is complex and is best handled by experienced attorneys.

[keepmine]

The means test is just one step. The next step is, can you fund a Chapter 13.
Many here have filed a Chapter 7 and been over the median income.