I have a few questions Help please...

[aces67]

We've been in a CH 13 for 25 months now. We are in a 60 month plan. When we initially filed we were over the median for a CH 7 so we had to do a 13. Dh's income has dropped and we are now below the median but our lawyer says we should cut expenses instead and wait a few months before we even think about converting to a 7. Can we just dismiss now and refile later?

Second question is We are in TX. Apparently in TX the child tax credit from the IRS is exempt. What exactly does this mean though? We are really broke right now and $2K of our tax refund every year is the child tax credit. Does that mean we can keep it? Our trustee took it last year.

Thanks for any advice here.

[aces67]

Also we have 2 vehicles but I'm a SAHM. We only need 1. My vehicle note is $592 a month for the next 3 years. Dh's is $450 a month for 18 more months. Can we just amend our current 13 somehow and give back my car? We owe $3K more on it than what it's worth. I know that if we do that the trustee will raise our monthly payment but since we are already at 100% payback he can only raise it to pay the difference on the car right?

[krielly]

I see no reason why you can't amend your Chapter 13 plan now and accomplish both:
1. Surrender vehicle
2. Modify your schedules (show lower income for your DH and adjust for car payment no longer coming out of budget)
You are right, you will pay more to the plan per month, but if you are already in 100% payback, it doesn't really matter. The good news is that you should have your plan completed earlier - and can get on with your life.

Does your attorney know you are considering surrendering a vehicle?

If your state exempts the Child Tax Credit, then yes, you can keep it.

K

PS: just FYI, if you convert to a Chapter 7, you will have 2 filings on your public record for your credit report, I believe........1 for the 13, and another for the 7

[aces67]

That's very informative! My lawyer does not know that I'm thinking of surrendering my car. Is my lawyer the one that is supposed to get me the child tax credit? DO you think I can get last year's back or not?

[krielly]

You should defintely set up an appointment with your attorney to discuss specifics. Good luck!
K