Attorney suggested converting from 13 to 7

[californiamama]

We filed in 6/06 chap 13 to keep our home. in Oct 06 my husband and I decided we are giving up the house. So it is in the process of foreclosure. I dont think im making as much money as i did last year but our income in the past 6 mos exceeds the median for 3 people in California. Does this mean I cant pass? Has anyone tried to convert and was rejected?

[lrprn]

...our income in the past 6 mos exceeds the median for 3 people in California. Does this mean I cant pass? Has anyone tried to convert and was rejected?

If the six-month lookback shows your income as still above the median for a family of 3 in CA, then your lawyer will have to go into the second part of the Means Test to see how losing your house payment and all the associated costs of owning a house affects your disposable income.

Given the very limited information you've provided, I'm guessing you may still have to be in a Ch 13 unless your look-back income is going to fall under the median at some point in the near future or your expenses have increased significantly (not likely after giving up the house). Will your total gross income decrease any time soon?

Are you struggling to make your trustee payments every month and that's why you let go of the house? What does your lawyer say about your chances of filing Ch 7 being above the median income for your family size?