Weird Turn of Events

[KLH547]

Filed ch. 7 on 6.15.09. My case was audited (of course) and the trustee noticed that my 2008 wages on my tax return did not match my final paystub of Dec 2008. I had neglected to supply the pay stubs from my on call part time job. I have worked there 7 times in the last 6 mos. and I just didn't even think of it. Not a good reason, trust me, I know, but it's the truth nonetheless. Atty said no worries, we'll file an amendment. I had declared the income to the IRS so not to worry, just an oversight. I am under the median for my state and my sched. J shows negative montly net income. Later that same day, the day the amendment was filed, my atty. calls me and says that I should consider converting from a 7 to a 13. He told me the trustee said he found $800 a month that could be used to fund a 13. $800 a month! My sched. J shows a monthly net income of $-64.00!

My atty. said that he was 99% sure that the trustee would file a 707b and that it would look better if I converted before the motion was filed. I agreed and the case was switched to a 13. I checked Pacer and it had indeed been switched to a 13 and it is labeled an asset case. I have no house - I rent. My condo went into foreclosure the end of February. I have no car - I drive a leased car that belongs to the company I work for, and I have no assets. . . no 401K, no savings, no nothing. No jewelry, no "toys", nada! My atty says not to worry, we'll meet next week and go over everything, tighten up my expenses . . . famous last words.

My questions are . . . since this case has already been converted once, I can't convert back, can I? I have to have this case dismissed and then refile again as a 7 in 6 months? Or does the trustee have the power to switch it back to a 7 when he realizes that there is indeed no money to fund a 13? If I had $800 left over as disposable income every month, I would not have filed ch. 7 in the first place! I am now thinking I should have let him file the 707b and then fight it . . . I feel like I am being made an example of but it may be my own current distaste for the court system as I just got out of three year lawsuit in Dec 2007 over a faulty HVAC system in the condo that was foreclosed on . . . the suit cost me $20,000. That's what has led to me to file ch. 7.

Has anyone else filed ch. 7 and then been forced to a ch.13? Any insight would be great. I am making myself crazy!!

Thanks!

[justbroke]

My questions are . . . since this case has already been converted once, I can't convert back, can I? I have to have this case dismissed and then refile again as a 7 in 6 months?

No. You have an absolutely right to convert one time from Chapter 13 to Chapter 7 (ifyou qualify for Chapter 7).

Or does the trustee have the power to switch it back to a 7 when he realizes that there is indeed no money to fund a 13?

Tjhe Trustee can not switch a case from Chapter 7 to Chapter 13.

If I had $800 left over as disposable income every month, I would not have filed ch. 7 in the first place! I am now thinking I should have let him file the 707b and then fight it . . . I feel like I am being made an example of but it may be my own current distaste for the court system as I just got out of three year lawsuit in Dec 2007 over a faulty HVAC system in the condo that was foreclosed on . . . the suit cost me $20,000. That's what has led to me to file ch. 7.

If you just did this, within the last 10 days, your attorney can probably motion to withdraw conversion.

Many people have been moved from Chapter 7 to Chapter 13 if Schedule I less Schedule J shows more than $180/month in disposable income. It's just a fact. So, if you think there's something wrong, your attorney and you need to seriously communicate and go over your Schedule J.

[AngelinaCatHub]

If it makes you feel any better, I am/was in a multiple harassment law suit with a screwball multi millionaire. I lost 190K in lawyers, and doctor bills as well as my wife lost two jobs due to his process servers harassing the businesses and I lost one regular consulting customer due to him. He since has had a major heart attack and we don't expect anymore problems with him. He also AP-ed my bk.

From what you state, unless you are gainfully employed, and have nothing to spend your money on, I would say you are C7 candidate. Where you audited by the U.S.T. or your Trustee? I don't understand. I believe it is up to you as to try for a C7 or C13 and then to prove the need for either. I believe 'Justbroke' is correct, it is not up to a Trustee to make changes. The Judge may make changes but I don't think they can even change at their whim the function of the procedure, only the outcome.

I don't like the Courts either as they can be used by those with more money, a weapon. The Court system can be manipulated and shark lawyers buy justice. As O.J. However, as in my enemy, Karma got him and Karma got O.J. If you are right, you will prevail. 'Hub

[KLH547]

Thanks so much for all of your insight! I have been crunching numbers all morning and I am definitely ch 7 material. I am calling my laywer first thing tomorrow and we are going to have a nice lengthy sit down! I will keep you posted!