Question about converting AFTER new law takes effect

[alice0427]

My DH and I are filing for Chapter 7 either today or tomorrow. An asset of mine may cause us problems with filing Chapter 7, so we may be converted to Chapter 13.

If we go to our 341 meeting in the beginning of November and we have to convert, will we be subject to the old law or new law?

Later, if we are converted to Chapter 13 and want to convert to Chapter 7, would we then be subject to the new laws?

I'm so confused about all of this.

[HHM]

First, instead of asking about conversion, what is the problem with the asset?

As for the converstion, once your case in converted from a chapter 7 to a chapter 13, you cannot go back to 7 under the current law or the new law.

[alice0427]

I posted the problem with the asset in another thread, but basically it's that I "own" a 10% share in my mom's convenience store. My attorney thinks the BK trustee will be interested in the sale price of the store if it were to be sold, and the realtor we asked said he'd list it for $140,000.

I'm worried that if the trustee decided the $14,000 that would result from MY 10% would be worth going after it, I would have to change to Chapter 13 because I can't let my mom's store be sold. It's her way of life!

I was just wondering if there is any sort of a means test to decide when a trustee will pursue an asset. If the trustee decides it isn't worth it, then I imagine we still stay in Chapter 7.

I may be confused about how all this works...it's overwhelming.

[FloridaGirl]

They can't ask you to sell something that you aren't the sole owner of. You only own a 10% share so that means either your mom, or a few other people own the other 90%. They have nothing to do with your BK, so it wouldn't be fair for them to lose their asset just because you have to file. What may happen is that the trustee will make you pay the court what you would have gotten had the business sold at the 140 grand. If this happens, you can set up a payment plan. They wouldn't make you pay them 14 grand right up front.

[alice0427]

Thanks FloridaGirl. HHM seemed to think that because the business is incorporated and I only own 10% of the shares of stock, that the stock is the only asset there is to sell. It's 10 shares of stock in a family-owned company. It's basically worthless.

That being said, is it still the type of situation where the court could make me pay what I would get if the business was sold?

I guess I'm unclear about the difference between "owning 10% of the shares of stock" and "having a 10% interest in the busines." Is there a difference?