Converting from chapter 7 to chapter 13

[rockobuster]

We have a little over 4 weeks left in our chapter 7 plan and it looks like the US trustee will be requesting we convert to a chapter 13. The trustee put in his report that several expenses should not be allowed.

We have $120,000 in unsecured debt but do not have any secured debt to pay back. We have seven credit cards we would be paying back. Our lawyer thinks we will be paying anywhere from $400 a month to $800, depending on what the US Trustee lets us claim on our expense sheet.

If we paid $800/month (which will be extremely hard) for 5 years, we would be paying the credit cards $48,000 total. Would this mean that $72,000 would be discharged after the plan ended?

Can you negotiate with the US Trustee or the judge (whomever you meet in the chapter 13 meeting) over the amount you pay or the length of the plan?

[HHM]

If you don't have any secured debt or tax liens, your chapter 13 plan should not exceed 36 months.

What expenses is the US Trustee objecting too?

[rockobuster]

We had $300 disposable income coming to the 341 meeting and the trustee is objecting to $125 for Directv and a membership for myself and husband that is $300 a month. The Trustee did not object to money (15% of my salary) that has been going to my retirement account with the state for 8 years).

If we do not have any unsecured debt to pay back (since we are reaffirming the house, car and loans at the credit union, then would we be paying whatever the US Trustee suggests and no longer than 36 months? Would the remaining money be discharged after the 36 months?

[MomMomRose44]

fron 7 to 13

I was in a bankrupcy a few years ago and was converted from a 7 to 13. You are only allowed 60 months although I refinanced in 36 months. By refinancing that discharged my bankrupcy but the interest rate I paid for the refinance was high. I had equity in real estate and I had it up for sale during the course of my 13 until I sold it. then the secured and unsecured creditors were paid 100% . The trustee new from the beginning I was putting real estate up for sale so allowed me to pay a minimuel over my monthly living expenses until it was sold which was around 33 months. then settlement-then discharge. I do believe that the trustee is going to go by what you add up for monthly expenses EX-- mortgage or rent, food, utilities, gas, insurance, etc then add your salary or salaries together to come up with a monthly figure to pay the trustee over 60 months. I believe that is how it works as I remember that is what the trustee did to me. You can only pay back the difference of your salary or salaries LESS your living expenses is what is paid to the trustee. Your attorney should sit down with you and go over a schedule sheet listing all your expenses and then your salaries combide if both work. they can't take anymore from you than what you can afford on paper. good luck to you. Don't feel too bad. I have seen deeper debts. I was one! Hope I answered your question.