Converting To A Chapter 7
I have been really thinking about converting my case over to a chapter 7, problem is I included the IRS in my chapter 13, I do want to pay them, however i do not want them to place any liens against my wages, however I was told that they would set up a payment arrangement, I dont want to get bit in the butt. I need some advice. also i included my car in my chapter 13 and My attorney told me that if i convert to a 7 i would need to surrender my car.
-
-
Based on what you have explained, you are probably better off sticking with the 13. But a little more background would be helpful.
Why do you want to convert, what, if anything, has changed that is making the 13 too difficult? -
If you work out an agreement with your bank who has the loan on your vehicle you can reaffirm that debt.Comment
-
Originally posted by HHM
I'm not having a problem making the payments, however I need to move and I really need a new car(enginge light is on) No apartment will rent to me in a chapter 13, no autofinance company will fianance me. I dont have this huge lumpsum of cash and I dont like the idea of being stuck in this for another 2 years everything is limited and i feel that I need a fresh start. I have been in a chapter 13 far too long to reaffirm the auto loan, but my attorney is not even giving me the option of keeping the car they are saying before they will even allow me to file a chapter 7 I need to surrender the car.Comment
-
I am in the process of converting right now. I have my 314 meeting today. I was in our plan for 35 months and our auto loan was included in the plan. I contacted the bank holding the auto loan and worked out an agreement with them for the reaffirmation, why would they want to turn away money? The bank can't call you because of the automatic stay but you can call them. If you work out an agreement with them, all your attorney has to do is sign it. Unless there is equity in your vehicle, I don't see how it wouldn't be exempt. Also, I haven't meet someone who actually wasn't upside down on a vehicle loan. I'll let you know how my meeting goes and it I run into any problems. Maybe you should call a different laywer.Comment
-
i called my auto finance company and they told me they couldnt tell me anything until I actually filed.Originally posted by kluxComment
-
I am sorry to hear that your finance company won't talk to you, but in a way they are protecting themselves because of the automatic stay. If you converted to a Chapter 7, how much disposable income would you have a month? My bank gave me a scenerio before I converted but also stated they couldn't do anything until they got notice of the conversion to a chapter 7. When you convert it is just like starting over, you do a statement of intentions and you just list that you want to reaffirm the debt. Downside is, if you weren't required to pay the full amount in your Chapter 13, they might want to reaffirm for the complete amount. My bank didn't, I was lucky. I had to reaffirm on the active principal balance. Let me know how you plan to go. If you have a good amount of disposable income after paying all your expenses, they probably won't let you do Ch. 7, take a look at your expenses and make sure you've included EVERYTHING!Comment
Comment