Hi, Today we had our 341 meeting and it was declared "no asset" by the BK trustee. Now we wait to see if POA is filed by US trustee. We are over median filers, but we have negative DMI on Means test (-$700) and on I & J (-$2,700). I'm assuming the US trustee will object to something and we'll need to answer him. I do feel confident that we can overcome any questions he may have, but in case the worst happens, here's my question. Can in theory, my Chapter 7 be converted to a 13, then the Chapter 13 BK trustee say, no way can we get this plan confirmed, and convert it back to a 7? I've analyzed my schedule I and J more than I care to admit, and there is just no way we can fund a Chapter 13 with our current income and expense. And the prediction seems to be that the social security tax holiday will go away in January, which means another reduction to schedule I. Anyone have any thoughts or been in this type of situation before?
BTW, the reason we are so negative on I - J is partly from 401K loans that we have no choice but to pay back through payroll deductions. They will not begin to be paid off for 3 years, so even in a step up plan, the step up wouldn't happen for 3 years. And my mortgage payment is set to go up in 2 years, so there would actually be a step down before a step up.
To make matters worse, since we are over median, the trustee's in our area expect at least 7-10% payback to unsecureds minimum.
Just wanted to see what anyone out there thinks...
BTW, the reason we are so negative on I - J is partly from 401K loans that we have no choice but to pay back through payroll deductions. They will not begin to be paid off for 3 years, so even in a step up plan, the step up wouldn't happen for 3 years. And my mortgage payment is set to go up in 2 years, so there would actually be a step down before a step up.
To make matters worse, since we are over median, the trustee's in our area expect at least 7-10% payback to unsecureds minimum.
Just wanted to see what anyone out there thinks...