Chapter 13 Bankruptcy Is Causing Me So Much Stress

[asmith1818]

The nice thing about converting from Chapter 13 to Chapter 7 is that you get to use ths super-secret clause in 11 USC 348(d). (I know that section of the bankruptcy code by heart with no need to look it up!). You get to include any "new" debt since filing the Chapter 13 as if that debt existed the day before you filed. The only exception is things that would have otherwise already been non-dischargeable (think taxes).

Other than that... 348(d) could be a lifesaver.

Thank you so much! That does help. Maybe the fee's will be less to when converting the case. I will contact attorney soon and see what they say.

[justbroke]

The nice thing about converting from Chapter 13 to Chapter 7 is that you get to use ths super-secret clause in 11 USC 348(d). (I know that section of the bankruptcy code by heart with no need to look it up!). You get to include any "new" debt since filing the Chapter 13 as if that debt existed the day before you filed. The only exception is things that would have otherwise already been non-dischargeable (think taxes).

Other than that... 348(d) could be a lifesaver.

[asmith1818]

Sorry I have not followed up on any of these posts. I really appreciate the feedback. I have not contacted my attorney, I had such a gut wrenching experience from filing in January 2018 to the conversion to the chapter 13 in June 2018, I am dreading so much starting this process over again.

But, all I keep doing is getting myself further into trouble each month I play this smoke and mirrors game to keep my head above the water. I am going to bite the bullet this week and contact my attorney about converting my case to a chapter 7.

I would consider modifying the payments if I could, but I have incurred some medical bills and personal loans that I can not afford through this process, which I know is not something I am allowed to do but was desperate.

I filed my taxes and and my income after taxes for 2019 was $31,870. Nearly 42% of my take home pay. I just need to scrape the filing fee money the attorney will want to file my case again as a chapter 7 if they even will. I am going to make the call this week though, thanks everyone.

[Barbisi]

As much as I hate my own BK13 (for reasons unrelated to the monthly payment plan amount) ,your situation is enough to drive any one over the edge! $2000 sounds unreasonable , untenable and totally ridiculous!
I hope you can free yourself from these nightmare fetters soon! Best wishes on a better future!

[justbroke]

Yes, it reads as though the Chapter 13 attorney didn't spend much time working on a plan. Just my basic math says that someone that makes $40K will take home $32K a year (Source: iCalculator). That means only about $2,667/month.

So there is obviously something wrong. If they calculated your payment at $2,000/month before you even moved, there is something very very wrong. If you have a car, that's $589/month allowed. If you have an apartment in Illinois, I'll just guess that's at least $1,000/month for a 1-bedroom. Food, clothing and misc are about $580/month. That's over $2,000 right there. Something went very wrong.

I would try to see if another attorney will even talk to you. Perhaps get your case voluntarily dismissed. Then look back at refiling.

[asmith1818]

Thanks for listening, i just needed to vent today. I was contemplating contacting my attorney and asking about a possible conversion to a chapter 7. I dont own anything, no home, no car, nothing. I'm side hustling as much extra work as I can but I still am never caught up and basically always at 0 each month. I need to look into seeing if another attorney could look at my case, thank you for that. I just need to bite the bullet and do it.

[IamOld]

Oh my dear God - how in the world can you be asked to pay that much on 40k/mo? It sounds like your lawyer screwed up.

I can't breath most days, but they really really raked you over the coals. Ok...there are a LOT of great people on here!!

I know I'm not telling you something I'm sure you haven't already thought of - but - is there any way you could get another attorney to look at your case? And how in the world would they not let you file Ch 7?

[asmith1818]

I have been in my chapter 13 bankruptcy plan since March 2018. I filed for a chapter 7 and after an exhaustive battle with the attorney from the courts, a 2004 examination, months of stress I was told my only option would be to convert to chapter 13 or get my case dismissed.

My attorney tried to tell me that the dismissal wouldn't be the end of the world, some creditors wouldnt even try to collect. I racked up over $100k in debt and literally sold off almost all my possessions before filing to just keep my head above water. When I was pretty much out of things to sell, I filed and I wasnt accurate on my bankruptcy petitions. I kept off about 2000 dollars in items, I was scared I was going to need to sell them at some point for on going legal fees, a coat, some shoes, a bag. Well the 2004 examination nightmare literally was a nightmare all over me not disclosing this 2000 dollars in items and the paper trail catching up with me. So it was all my fault and I feel horrible about it, should always be honest I know. In the moment, I was so scared and desperate I was thinking of just jumping out of the window which in the heat of the moment I told the attorney at the 2004 meeting to just open the window and put me out of my misery.

After that they decided to let me file for a ch13 but wanted me to make substantial payments to show them good faith. Well my salary of 40k they wanted me to pay 2000 a month. I moved back in with family, cut all my expenses and I am drowning. I cant even live, I am paying about 60 percent of my salary to trustee and cant afford to live this way.

I am just stuck in this horrible place and needed to vent. None of my few friends I have told understand what I am going through, they think I should just pay what I can and not stress. I am literally losing my hair over this and no one understands.