Converting from 13 to 7

[Stupid mistakes]

We have made some really stupid mistakes. We filed a chapter 13 bankruptcy in 2005. For a while we did great, then slowly we dug ourselves a new hole. We have a good bit of new debt (please do not flame, I debated even posting this) We have a bank account that we have a good balance negative on, we have a couple credit cards, some utility bills, a good bit of medical bills, and some other stuff. Making the payments on the bankruptcy, as well as all of our bills we have, the new debt we have incurred, and medical issues we are dealing with, we are just not making it. Are we able to convert to a chapter 7? We had a car payment, and that is why we did a chapter 13, but it has since paid off, and we do not have anything like that now. We rent, our only car is paid for, ect. I am just tired of not making ends meet. We have grown up a lot since these bills were incurred. I can not belive we made stupid mistakes after finding a way to fix everything, but we did, and now we are dealing with it.

Anyway, is it possible to convert to a chapter 7 now? Are we going to get into huge trouble for the new debt? What path should we go on?

[chpxiii]

Wait a minute.. how were you able to get credit cards while being in chapter 13? From my understanding you are not allowed to have credit or credit cards (except the credit approved by the courts) while in a chapter 13 payment plan.

You'll want to contact your lawyer about this one. Having credit and credit cards while in Chpt. 13 could get your case dismissed.

[Stupid mistakes]

I know, that is what has me so scared. I did not know he got them until after there were bills on them. I am thinking we will be better off to just start paying things off on our own slowly, and dealing with what we have done to ourselves.

[kiddles]

You may want to talk to your attorney to see if your BK case can be "separated" from your DH's - if he obtained new credit without trustee approval and without your knowledge, he could be in for a world of trouble.

[coma]

I agree with the above post. Tread lightly, because if someone finds out about new debt, this could be an issue for you. When did you file (before or after the new law)? It's easier to convert, in my opinion, if you are old law, as you don't have as many hoops, but you can generally convert, in most cases, if you qualify for a 7.

I also don't want to sound like I'm judging you...I've been there, and still am, so believe me, I understand, but you have to look at why you have new debt, medical bills, a negative bank balance. Is it an income issue or just a money management issue. you've got to work on that stuff, so that you can get the most from your fresh start.

Keep asking questions, the experts will chime in soon!

[rrockinggramma]

I have been researching this very thing. If you have no prior chapter 7 within the last 8 years then yes you can convert. I am allowed up to 1000 in cc debt during my chapter 13. However I wouldn't let that stop me from converting (acquiring new debt) I would convert in a sec if I could. Call your lawyer and get it done. Then you can really begin your fresh start.

[Stupid mistakes]

Our petition was in April of 06 ( I thought it was 95) and our Confrimation was in June of 06. I just can not belive we have ourselves in this situation again. The credit cards my husband has total under 1,000.00 so if we work hard enough, I think we can get them paid off. I will use our income tax if I have to. I am just sick over this. The other bills are a bank account that got messed up, and went negative. Then they charged us a ton of fees, and it went about 1,000 negative the last time I checked it. It has since been closed and is in collections, but nobody has contacted us about it.

[chpxiii]

Our petition was in April of 06 ( I thought it was 95) and our Confrimation was in June of 06. I just can not belive we have ourselves in this situation again. The credit cards my husband has total under 1,000.00 so if we work hard enough, I think we can get them paid off. I will use our income tax if I have to. I am just sick over this. The other bills are a bank account that got messed up, and went negative. Then they charged us a ton of fees, and it went about 1,000 negative the last time I checked it. It has since been closed and is in collections, but nobody has contacted us about it.

They most likely won't contact you due to the automatic stay of relief from your current bankruptcy.

[HHM]

I am not sure you would get in trouble, but I don't think you can put that new debt into the chapter 7, because when you convert, the filing date is retro-active to the day you filed your chapter 13.

But everyone is correct, while in BK, you are not supposed to obtain new credit without trustee and/or court permission. Token amounts of debt may be over looked (less than $1,000) but if you have significant new debt, you better speak with your attorney.

[coma]

I am not sure you would get in trouble, but I don't think you can put that new debt into the chapter 7, because when you convert, the filing date is retro-active to the day you filed your chapter 13.

But everyone is correct, while in BK, you are not supposed to obtain new credit without trustee and/or court permission. Token amounts of debt may be over looked (less than $1,000) but if you have significant new debt, you better speak with your attorney.

I'm old law, so this may not be correct, but in my conversion, bankruptcy rule 1019, I believe (I have to check that reference), states something to the effect that any debt incurred since filing needed to be placed on the schedules and added. I was permitted to add, though I did not have anything to add. So even though it's post 13 petition debt, it's not post-7 petition debt.

[sandhall]

we just converted to a 7 we have 13 days till discharge. We had new medical debts and three other debts that wer each under 500 that the trustee for 7 allowed us to put in our converted case but with each debt we had to show reason why we got it. Like 423 was a car repair and the repair shop was allowing us to pay 50 a month so after giving the trustee proof and reasons they allowed it. I would ask your attorney because he could speak with trustee's office prior to 341 and get what would be allowed. if you convert there is a conversion fee by the attorney so make sure you have that to pay mine was 1500 so make sure you understand all fees and i had to pay 100 dollars a item that trustee allowed in so the attorney would redo the paperwork.