thinking about converting to A chapter 7

[gerib38]

Only because im behind on lot rent and a few drs bills have come about , that i just cnot afford to payl. i am just so tired and i want out of this bankruptcy , however i make more money now than i did before i filed the 13 , my daughter moved in with me and i had to help her out with her bills while staying here and it has really taken a toll on me . will the fact that i make more money now,keep me from filing a 7 ? how do i go about doing it , any advice ?

[woeisme]

Are you still below the median income? That will primarily determine your eligibility for CH 7 conversion, as will your calculation of disposable income. You need to contact your attorney for your CH 13 and discuss with him/her the decision to convert in order to get the ball rolling. There may be an additional fee from the attorney to convert, and a small fee from the court.

[gerib38]

Where do i go to find out if im below the median income?

[woeisme]

This is the site with the median incomes. You need to base it off your past 6 months income x2 rather than your past year's income though.

http://www.usdoj.gov/ust/eo/bapcpa/20090315/bci_data/median_income_table.htm

[gerib38]

I make less than the median income that is my income x 2 for the last 6 months so i am about 12250.00 under the median income

[gerib38]

I have been in my chap 13 for 3 yrs , i hope i am not making a mistake and have not made the final decision to convert im just sick of being stuck in a bk , I am single i need to be able to get credit. I dont really know what i should do at this point , i dont twant to lose my car which on my last bk statement i only owed about 900.00 on it , not sure how all that works , thanks for your advice everyone

[woeisme]

If you are a below the median filer, then your plan should have been for 36 months or until your secured assets are paid for, whichever is longer, I think. So if you only owe $900 on the car, and have been in the CH 13 for 36 months (3 years) then I would think the remainder of your payments should be going to pay off the car and you'd be done. Was it written as a 5 year plan because you were above the median initially? If so, maybe all you need to do is a modification of your CH 13 to take into account change in wage, and you might be able to finish your CH 13 once the car is paid. Talk to your attorney, because this could be a lot cheaper (mine didn't charge anything to modify my plan when husband's income dropped) compared to new lawyer and court fees with a CH 7 conversion.

[gerib38]

i hate to say this but i made less money when i filed and had my daughter living with me , i am in a 5 yr plan , SO I HAD TO BE WAY UNDER THE MEDIAN INCOME BUT I WAS A FEW MONTHS BEHIND ON MY CAR PMT WOULD THAT MAKE A DIFFERENCE ?--OOPSsorry bout caps

[gerib38]

I owed more on the car when i filed , but i saw on last statement that i was down to about 900.00

[gerib38]

problem with doing a modification is i havent reported that i am making more money , im afraid ill be dismissed for not reporting it, my lawyer said i could get a better paying job but dont tell him , he said trustee wasnt a tough one , but still im afraid he'll make me pay more and i struggle as it is

[woeisme]

I think still being way below the median, as long as your expenses show a negative disposable income, they can't stop you from converting. And as long as you keep paying on your car post-BK, they probably won't come repo it either, they just want their $. (unless it's worth a lot more than you owe on it). I think your lawyer steered you wrong if you were just filing 13 to save a car. You could have filed Ch 7 and had this all behind you years ago instead of struggling in a CH 13 for 3 years then filing CH 7 anyhow. This will make it much harder to get credit though, two BK filings on the credit report and the CH 7 won't drop off for 10 more years where the 13 would fall off in 4 more years. I'd try to see if you can get your 13 modified or hardship discharged instead of converting, and if that doesnt work , then consider CH 7.

[aces67]

We converted from a 13 to a 7. Just talk to your lawyer. He should run your numbers FIRST and let you know what your options are. There's no harm in trying.