Modify or Convert Chapter 13 - Suggestions Please

[klux]

I have a wierd thought right now. My Ch 13 plan amount is scheduled to go up a lot in a cpl months, we had a lower payment for awhile, then it was going to go up. In the meantime we had a reduction in income. There is no way we are going to be able to make the payment when it goes up. I hand delivered a letter to my attorney 1.5 weeks ago asking what are options were and she has not replied. I was thinking that maybe we could contact the companies that have our vehicles and ask them to lower the amount of their claim in the bkptcy, vehicles are now worth a lot less than we are paying. Then I would maybe be able to get the plan modified to be affordable and still keep vehicles. Does anyone have any experience with something like this? Can you get a plan dismissed and then refile the next day, so that we wouldn't loose our vehicles? Just wondering if anyone else has ran into a similar situation and how they handled it.

I don't think we'd be ablet o convert to a 7, because we had a bkpty before. Filed in March 2002 and coverted to a ch 7 in April 2005, received discharge July 2005. Does anyone know if converting toa 7 and receiving a discharge goes into effect from Original File Date or Discharge Date? Would I be elgible for a discharge in a Ch 7 in July 2012 or July 2009 if I wanted to convert to a chapter 7 and reaffirm my vehicles?

[AngelinaCatHub]

If you don't try, you will never know. It is worth a try but I doubt they will have the power to lower or ammend. I think only your Trustee can ammend anything and he will only talk to your lawyer while you are represented.

You won't be able to go C7 this soon after you had one. I believe seven years.

My question is, what happened to the "New Start" you had in 2005 when all debt was forgiven by the Court? Now you again are in bk 13? I'm not being judgmental, only curious. 'Hub

[fltoo]

I also, like Hub, wonder how people get in financial trouble again after a fresh start.

I am budgeting money for the first time in my life. Even though my BK was due to a business failure, I look back and see how I mismanaged money all my life.

But, just wondering. Do you get credit again thinking you can handle it and it gets out of control again, or is it a major money crisis. I am trying to amass an emergency fund, but it is hard.

My BK has forced me to take a hard look at how I handled money and I am trying to make changes. Wish I had this realization years ago.

[StartingOver08]

Ditto fltoo. Well said.

[klux]

Not trying to be judgmental huh, I know remember why I stopped coming to this website. We had 2 children and my husband had a serious health issue and was out of work. We was hospitalized for nearly a month. No, we didn't have credit cards, I have a vehicle that I paid a very high interest rate for and medical bills! Behind two mortgage payments when husband went to hospital, got scared, paniced and filed to avoid foreclosure. Probably would have worked with me but I paniced.

[AngelinaCatHub]

Not trying to be judgmental huh, I know remember why I stopped coming to this website. We had 2 children and my husband had a serious health issue and was out of work. We was hospitalized for nearly a month. No, we didn't have credit cards, I have a vehicle that I paid a very high interest rate for and medical bills! Behind two mortgage payments when husband went to hospital, got scared, paniced and filed to avoid foreclosure. Probably would have worked with me but I paniced.

[klux]

Thanks. I'm going to send my attorney a fax today asking for follow up to the letter I sent. Hopefully she'll reply.

Has anyone here dismissed a chapter 13 and refiled? What does it entail?

[HHM]

I am still not clear on exactlty the problem.

You created a tiered chapter 13. What exactly are you trying to accomplish? I assume you did some sort of cram down on the vehicles or are otherwise paying them through the chapter 13 plan, correct???

The creditors will not amend their proof of claim in an active 13. If your plan has to pay a certin minimum to creditors (i.e. you need to pay the cram down amount), and you can't, then amending the plan is a waste of time because it would be deemed unfeasible. As far as dismissing a 13 and refiling, yes, you can do that. But you need to look at the numbers to make sure the new plan would be feasible.

[woeisme]

I know you don't want to hear it, but those of you asking "why did you have to file again?" may have to file again at some point too, no one is immune. You may be the best budgeter in the world, live as frugal as can be, but how long could you really go without an income if you lost your job in this economy where jobs are scarce, or what if you had a catastrophic illness and the medical bills overwhelmed you? (this can happen even with insurance! most have max payouts and 20% co-pays that can destroy all of your best planning). I pray to God I never find myself in this situation again after I complete my 13, and will do everything within my power to prevent it, but not all things in life are within my power. It's not a pleasant reality, but it is reality, so best to judge not lest ye be judged and all that...

[woeisme]

Are you caught up with the house at this point? Could you live with lesser vehicles if you dismissed your CH 13? If reduction in income is permanent, may have to re-evaluate what you can save and what you can't by your Ch 13. Are your vehicle loans old enough to even be considered for a cram down? If they aren't past the 910 day limit, I can't imagine your lenders being willing to work with you on any reduction in payment. Just thinking if the cars are the real problem, maybe need to get rid of the cars, drive cheap junker cars for a while (use the $ you save from high car payments to get beater cars) and have CH 13 modified accordingly? But will definitely need your attorney working on this for you.

[fltoo]

I know you don't want to hear it, but those of you asking "why did you have to file again?" may have to file again at some point too, no one is immune. You may be the best budgeter in the world, live as frugal as can be, but how long could you really go without an income if you lost your job in this economy where jobs are scarce, or what if you had a catastrophic illness and the medical bills overwhelmed you? (this can happen even with insurance! most have max payouts and 20% co-pays that can destroy all of your best planning). I pray to God I never find myself in this situation again after I complete my 13, and will do everything within my power to prevent it, but not all things in life are within my power. It's not a pleasant reality, but it is reality, so best to judge not lest ye be judged and all that...

You state the obvious reasons for any BK. Anyone filing for BK judging anyone else for filing, no matter how many times, is quite ludicrous.

But, actually, I really did just want to know why people file a second time.
My lawyer was concerned about me filing because I have a 10,000 deductible on a self pay health insurance policy and I could have waited it out for several years. I only decided to file to get it over with. I am going to have a problem if I have a major health crisis, hence the reason for trying to amass an emergency fund.

Knowing the reasons for first, second or third time filing is very useful for financial planning or BK guide for those of us here.

[woeisme]

Fltoo, your posting focused on asking the OP if they ran up their credit cards thinking they could "handle it", not the obvious reasons, job loss and medical issues, which is why it came off as judgmental to the OP, in fact so judgmental to the point where they were considering leaving the site after reading Hub, your and startingover's posts. If I was pointing out the obvious reasons, as you say, it's because you were ignoring them as the most likely cause of someone needing to file again, where I would have assumed it was something catastrophic and out of the OP's control that had them filing again so soon. I'm sure your intent was good, trying to identify ways to avoid multiple filings, but it didn't come across that way initially, guess that's the problem with forums, things tend to sound more abrasive than they are meant.

[fltoo]

Actually, no, I did not ignore anything. I asked if it was thinking one could handle credit again and it got out of control OR a major money crisis, which could be anything from a job loss to major medical bills.

And....timing can be very important so that a BK is not wasted now if it may be needed in the future, ergo the concern my lawyer had with my health insurance.