converting 13 to 7, questions

[mistya55]

Ok I have been reading and haven't read about what I need to know. My best friend is wanting to convert his 13 to a 7. What I don't understand is that his lawyers are telling him he has to catch up his mortgage payments and few others. It is around the 2000 dollar area. He hardly brings home anything, as in not even a 100 dollars a week. Thats hard after you consider he has 2 teenagers and a wife to take care of. If he is going to let it all go back as in vehicles and home, why does he still have to come up with the extra to catch up? I thought bankruptcy was for when you are behind and can't fix the problems. And he filed the 13 under the old laws. Thanks for any light you can shed on the situation for us.

[aa06a47]

Ok I have been reading and haven't read about what I need to know. My best friend is wanting to convert his 13 to a 7. What I don't understand is that his lawyers are telling him he has to catch up his mortgage payments and few others. It is around the 2000 dollar area. He hardly brings home anything, as in not even a 100 dollars a week. Thats hard after you consider he has 2 teenagers and a wife to take care of. If he is going to let it all go back as in vehicles and home, why does he still have to come up with the extra to catch up? I thought bankruptcy was for when you are behind and can't fix the problems. And he filed the 13 under the old laws. Thanks for any light you can shed on the situation for us.

If he no longer desires to keep his house or cars, as far as I know, then there is no reason for him to catch up. However, if he wants to keep his house and car then he must catch up.

Why did he file Chapter 13 under the old law? If it was a question of too much income, the new law may not allow him to convert to a chapter 7 now. If it was to keep his home, I would understand.

If your friends income decreased, he may be able to get his payments reduced if he still wants to keep the house. Can modify the plan to make it more realistic. I know they modify them up when you pay goes up, I figure they can modify them down when it goes down.

I would also have to question a plan that only allows a person less than 100/week to live on with 2 teenagers and a wife. I just cannot imagine he would owe that much money on secured creditors that a chapter 13 would take everything the guy makes to catch up. How can a trustee allow a plan like that to get approved when they know there is no way in hell someone can survive 36 months on a take home of 400/month? I doubt that pays much more than the utilities and food.