Has anyone sucessfully converted to a 7?

[chloe0724]

If so, could you please tell me your circumstances and how it went.

My husband is now out of work and collecting disability, so our income has severly dropped. We still haven;t been confirmed and the attorney says we should wait to see if our plan is confirmed, and not mention anything to the Trustee. Our 6 month lookback is still too high for a 7. STRESSFUL!!!!

[chloe0724]

No one?

[kmb]

We have a meeting with our lawyer on Monday to discuss this issue, but we've been in Chp 13 for over a year, so I don't know if the rules are different if you haven't been confirmed. My husband lost his job a week ago and our income has been reduced by 50%, and based on the brief phone call we had with our attorney, it sounds like a reduction in income can automatically qualify you for a conversion to Chp 7 without having to deal with the 6 month look back.

I can post more on Monday after we learn more, but again our situations are a bit different since we've been confirmed.

[PoorGrammyinBK7]

I have seen some on here who did that - did you do a search?

[ccgirl]

I think it would change the trustee's outlook on the plan if he knew your income was less. That would mean that you wouldn't be able to make the payments. I think your lawyer should relook at your plan before confirmation.

[chloe0724]

I have left severa messages for him, but no call back.

I am going to try again Monday.

[chloe0724]

KMB,

I am looking forward to hearing how your meeting goes.

Good Luck!!

[HHM]

Converting is really not a very difficult or worrisome process.

For all the fretting that goes on in this forum about BK, BK is largely a mathematical process. If, during a chapter 13, your income drops and that drop is something that appears will last for some time; and the drop puts you at or below your state's median income, poof, you are a chapter 7.

Granted, when you convert, it is a "new" BK so you will have to update your petition, attend a 341 meeting, etc, but otherwise, it is not that big a deal.

The issue with conversation is usually equity in assets. After all, the profile of most chapter 13 filers consists of people with higher incomes that usually own marketable assets that typically have some equity that may or may not be exempt.

[BnkrptcyLwyr]

If so, could you please tell me your circumstances and how it went.

My husband is now out of work and collecting disability, so our income has severly dropped. We still haven;t been confirmed and the attorney says we should wait to see if our plan is confirmed, and not mention anything to the Trustee. Our 6 month lookback is still too high for a 7. STRESSFUL!!!!

Is the nature of your disability such that he should reasonably be back to work soon? If so, then maybe you can still stay in the Ch 13.

FWIW - I had a client who filed Ch 13, only to find out 6 weeks later that the client's 3 year old son had cystic fibrosis. We converted to Ch 7 because the health care expenses for the son would now shoot through the roof, rendering her Ch 13 plan infeasible.

[busbis]

We have just converted from a 13 to a 7, but not do to a loss of income. My husband and I were paying over $1700 per month in our plan, but we have now been seperated for about 2 months. Because of his new living expenses, out atty said we now qualify for a chp 7. I was ready to file for divorce, but since all our debt is joint, he advised us to go ahead and convert to get all this behind us. August was our first payment missed with the trustee and he has moved away from his parents home and is now renting a home. I am very nervous to see what the trustee has to say, but our atty seems to think we won't have an issue. At the end of the day, if the trustee doesn't like that we converted and now have 2 different living expenses, it would be dismissed and I would just have to refile on my own just to keep the roof over my kids head. My meeting is on Sept 2. I am very nervous about my conversion just because it's not do to the loss of income.