Question about switching from 13 to 7

[imoverit]

If you start with a Chapter 13 and then lose/quit your job can you switch directly to a chapter 7 or is there some kind of waiting period for you to pass the means test??? Trying to get my ducks in a row...

[AngelinaCatHub]

Question first, have you already filed 13? We were going for 13 until loss of job then we were very 7 prone and passed the tests. Yes is your answer you can change as long as you meet the criteria. 'Hub

[imoverit]

No, we haven't done anything yet. I am currently on the hunt for another job because I hate mine. I figure if I take a pay cut that wouldn't really matter because we would get whatever exemptions for this and that and whatever is leftover they can take. Does it really matter if I make 50k or 30k? That is just more money the trustee can take to pay the creditors I owe. Am I thinking this right? Also thinking that we file Chapter 13 and start paying with my current wage, I go in to work one day and crack and tell them to take this job and shove it can we immediately switch to a chapter 7? If I didn't have any income we would pass the means test for 7...

[AngelinaCatHub]

No, we haven't done anything yet. I am currently on the hunt for another job because I hate mine. I figure if I take a pay cut that wouldn't really matter because we would get whatever exemptions for this and that and whatever is leftover they can take. Does it really matter if I make 50k or 30k? That is just more money the trustee can take to pay the creditors I owe. Am I thinking this right? Also thinking that we file Chapter 13 and start paying with my current wage, I go in to work one day and crack and tell them to take this job and shove it can we immediately switch to a chapter 7? If I didn't have any income we would pass the means test for 7...

[imoverit]

I won't go postal, but a breakdown is possible! I just see this is an opportunity to start over and I want to jump on it! I am so happy I found this message board, I believe I have quickly become addicted!

[bcvw]

I can relate to what you are feeling. I posted a thread on this same thing a couple of weeks ago.

Last week upon arriving here at work, we were told someone from corporate was here to discuss something with the entire location here. I was so hoping they were going to close us down, but alas it was to tell us that they were closing our other facility. We were bought out by this large corporation a couple of years ago and they have systematically disassembled us to the point we are no longer efficient or productive. No one here wants to work for this company anymore, they've outsourced all of the jobs that made us what we are to Asia.

Still, most of us plan to ride it out and hope things get better or we get a decent severance.

[lrprn]

Be careful about quitting your higher-paying job now if you intend to file Ch 13 within six months. Your higher income for the six months prior to filing will be taken X2 then divided in half to come up with your six month average income. Higher income = higher average to compare to your state's median income. If you file Ch 13 using the higher income, then it's possible that your monthly Ch 13 payment may be higher than it has to be. Much better to wait out six months at your lower income if you still have to file Ch 13. If you can qualify to file Ch 7 after your income decreases, then this won't matter as much.

And yes, $50K vs. $30K can make a big difference about which chapter you can file depending on which state you live in. It's time to set up 3-4 appointments with experienced bk lawyers in your area. Most give free or low cost initial consultations. You can find out a lot about what to expect and if there are any issues to be careful about before or when you file.