Converting a 13 into a 7

[tleeburks]

Im sure these questions have been asked before somewhere in here, but anyway. We are 1 1/2 years into a 5 year chapter 13. The pressure of the 13 and the lack of funds have gone to an all time high. We are sick and tired of being broke. I wish there was someone you could complain to because this chapter 13 has put us at poverty level. Anyway, we've decided that we want to convert to a 7. Things involved include:

2 cars, 1 house, irs, the rest is unsecured. questions:

after we convert (oh by the way, anyone know how much it cost to convert), anyway, after we convert, how long do we have to be out of the house because we have to secure residency, how long after filing the 7 will they come for the vehicles? I would like to reaffirm one vehicle due to not having money to replace it right now, anyway, can I trade it in later even though i converted and reaffirmed it in a 7? what else? what else?........how long after we file can i purchase a car for my wife? she has a van on its last leg (part of the reason converting to a 7). I think that is about it. Im gonna call the lawyer tomorrow and give him the news. We just feel that we have been married 12 years now and this 13 is breaking us up. We don't get along, argue all the time about money, haven't had a vacation in 2 years, drive bad cars etc,etc. We are just tired of being broke and unhappy. I appreciate everyones input. thanks

[lrprn]

Anyway, we've decided that we want to convert to a 7.

So sorry to hear about your troubles Have you had a change in income? Can you qualify for a Ch 7 now because your income jas dropped to below the Missouri median gross income for your family size?

After completing the Means Test with all the schedules again, if you can't qualify for a Ch 7, it may be possible to amend your Ch 13 plan. Talking things over with your lawyer is a good idea. He/she will be able to tell you what's going to be possible for you to do. Hang in there - please let us know what your lawyers says, ok?

[cso5@]

I thought about converting.....

And, it's just not if you are under the median that they look at, at least where I am.

If you have disposable income, in your 13 you stay. I am not sure what the level is.

That's what my lawyer told me -- that it's very difficult unless there's been a HUGE change in financial circumstances or some huge disaster that makes a big difference from when you filed.

Just letting you know -- so you can check with your own attorney on stuff like that, what's the custom in your area, etc.

Cat

[coma]

We want to convert but can't because we started out in a 7, converted to a 13, and we lost about half of our income...we have a hearing for a hardship discharge this week coming.

[Minnymouth]

Okay, your not the first couple to get discouraged over their Chapter 13 and you won't be the last!!

Yes, it can cause marital problems - IF YOU LET IT. REMEMBER, YOU ARE IN THIS BANKRUPTCY TOGETHER!!!!

As long as you have disposable income and your income has not changed, you will probably be kept in a Chapter 13. Depending on what your payback percentage is.

Have you had unexpected bills that have messed up your payment plan, or just been careless with the money that you are allowed???

Nobody said it was "going to be easy" doing a Chapter 13...... the strong survive it...... and it takes everyone working together....

If you need another vehicle you can purchase one with the approval of the Trustee and your Chapter 13 payment plan can be adjusted if presented to the Trustee.

Quit arguing with each other over the "little things"........ Make an appointment with your attorney (both of you), discuss what changes can be made to the payment plan. See where you stand......

The the part about being poor - you've got enough money each monthto pay your bills with - that's all the Trustee has to leave you each month....... He doesn't have to allow money to you for entertainment, dinner out, shopping sprees, vacations, etc.......

Tightening you belt, living off cash and limited income, helps teach you how to manage your money real quick...... You make the decisions on where you spend it........ ait doesn't take long to realize you better do it WISELY......

Just remember if you cannot do a Chapter 7 and you cause your Chapter 13 to get dismissed, creditors will be after you with a vengance.......and you have "no way out" this time...... You will owe your creditors again "in full" and will be open to law suits, garnishments, etc.

Keep us posted as to what your attorney says.

[Lesa13]

I feel your pain

Tleeburks, I am also in a 13 in Missouri, about 1/2 way done, and ABSOLUTELY feel your pain!!

While paying back (haven't missed a payment yet) I am also pretty much at the poverty level. It's one thing to have enough to be able to "pay your bills with" as Minnie stated IF that is the case, which may or may not realistically be true. I doubt if anyone (at least in Missouri) truly went into their attorney with all of their bills and everything was allowed. The goal seems to be to get you down to a level the court feels is appropriate and not necessarily taking real life into consideration. I sure don't see the BK court saying "hey everyone, gas prices have gone sky high, let's make sure you 13 people have enough money for you to get back and forth to work" or "gee, your insurance premiums have gone up $50 a month? Let's make sure you have that to pay for your health coverage."

I understand that "new laws" make it very very tough to convert from a 13 to a 7 except in the case of extenuating circumstances. I also think amending plans is something most attorneys don't care to do - why should they? They got their money up front and they've put in all the work they care to on a 13 in the filing. Why should they do any more work - unless they are really really forced? And telling them you are having a hard time because of gas prices or raised insurance premiums is NOT enough of a consideration for them to go through the work of amending your plan - at least it has not been in my case.

If it sounds like I am bitter - you are right! I would have been much better off filing a 7 but did not get the appropriate legal advice at the time.

Well, live and learn I guess. Hang in there, because that's all you can do. I completely understand what you are saying and wish you good luck.