Our lawyer thinks we may be converted from chpt 7 to chpt 13 due to income. Our plan was to surrender home and cars in chpt 7. After bankruptcy, we planned to start our life over in another town where husband could find a lower paying job but not have to commute. (he currently commutes 3hrs/day) Can we still surrender the house and cars in a chpt 13? Just pay back a portion of unsecured debt? We are determine to move and get husband out of this long commute! Any advice?
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Yes, you can still surrender assets in a Chapter 13. -
So if we surrendered house, vehicles in chpt 13........
We are upside down on our vehicles and our home (1st & 2nd) would we have to pay any money toward the negative equity in these?
Our only other debt is about $8000 in credit card debt. We are fine with paying this back, we just want out of the house and cars we are upside down in.Comment
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Shouldn't you be talking to your attorney about this?
Any deficiency balance in secured loans become general unsecured debts under your chapter 13 plan and paid accordingly.
Just like in a chapter 7, you don't really pick and chose debts to pay or not pay in your chapter 13. You list ALL your debts and categorize them, i.e. administrative, secured, priority, unsecured, etc. Basically, your credit cards and any deficiency balance on secured debts would be categorized as unsecured debts, and they would get paid if your plan provides payment to unsecured creditors.
So for example, lets assume you have $30,000 in unsecured debt (credit cards plus deficiency balance) and you have no other debts...and you have $400 per month in disposible income, thus, each of your unsecured creditors would get a pro-rated share of $14,400, ($400 x 36) after deduction of the Trustee Fee and any Attorney Fee to be paid in the plan.Comment
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We are going to talk to attorney this afternoon.
We were suppose to go in and sign papers to file chpt 7. They called this morning and said they had some questions about husband's pension plan and thought we might be converted to chpt 13. First we had heard that! I am asking questions here because I just wanted a heads up before I go in there today. Sorry to inconvenience you. I thought this was a place to ask questions.Comment
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