Met with new attorney last night.......

[DOA]

Well, we had our second meeting since the federal judge gave us 10 days to convert to 13 or have our case dismissed last Tuesday. She tried to put us at ease and explained a lot to us that the other attorney didn't. Like the fact we should have never filed a 7. She said that she would prefer we pay or secured debts, House, truck, and horse trailer through the trustee along with our normal plan payment. She explained that on the truck the fair market value is what they expect you to pay for the vehicle in a 13, and the unsecured portion would be written of and discharged if we paid the secured fair market value. Does this sound right? Our truck payment is $489 a month. She said they would cram down the intrest rate to say 6% and the trustee would be paying the $489 during the plan, thus paying more of the principal. I figured it up, and over a 36 month plan we would pay $16000, which is $3000 more than FMV according to Kelly Bleu Book and Edmunds. It still is $4000 less than we owe on the vehicle. But she said as long as the "secured value" as determined by the trustee is met, we would own the vehicle if there was only unsecured left, as that money would be discharged. I know I'm long winded here, but I'm just trying to get a handle on what this all means.

[bkfiler]

i dont understand your post. maybe you can explain some more and also tell us:

what you have already done with the court?

why you have picked a new attorney?

if you have disposable income or not?

why the federal judge is giving you 10 days. usually its the trustee or US trustee (but lots of people get them all confused - if the judge told you that then it means you have gone to trial)

[bilbo]

BKFiler--here is one of his 1st posts--Trustee is making him convert to Chapter 13 from chapter 7

http://www.bankruptcyforum.com/showthread.php?t=5505

[DOA]

[QUOTE=bkfiler]i dont understand your post. maybe you can explain some more and also tell us:

what you have already done with the court?
We filed chapter 7 after consulting an attorney, as I now have congestive heart failure due to a viral attack, missed a month of work, have incrdible new medical bills because insurance on pays so much.
why you have picked a new attorney?
The attorney we were dealing with does not handle 13's. So since the trustee and federal judge told us to convert or be dismissed within 10 days we found a reputable 13 attorney.
if you have disposable income or not?
Why yes, we do have disposable income according to the trustee and court, but how much has yet to be determined by the court.
why the federal judge is giving you 10 days. usually its the trustee or US trustee (but lots of people get them all confused - if the judge told you that then it means you have gone to trial)
Bub, I'm not confused, I went to trial in the federal courthouse of the southern district of Indiana. JUDGE on the bench, 7 & 13 trustees presenting for the federal, me, wife and attorney presenting answers for their request for dismissal persuant to 707b.[/QUOTE]

[bkfiler]

ok thanks for sharing. it seems you have found an attorney that you feel comfortable with.

why exactly did she say you should keep paying your secured loans and want you to file chap 13? to keep your property because under a chapt 7 it would have been taken away?

remember that attorneys make more to do chap 13. im just looking out for you and whats best for you. most often its chap 7. so i start there first and qeustion why chap 13 is better for you.

also, having topay back the medical debt isnt so great. under a chapt 7 it would be discharged.

[DOA]

Bkfiler, my secured debts would be my hous, truck, and a horsetrailer. The house and truck could not be taken away and discharged unless I want them to be in Indiana exemptions. As for why a 13 is better, the trustee looked over the schedules, which were screwed up by my first attorney by the way, and decided I had disposable income. The Judge told me that he would leave it up to the trustee as to whether to dismiss or allow me to convert. Trustee said he felt I was pretty debt ridden, and felt that I could handle a 13 in all fairness. I am aware the attorney and trustee both make more off of a 13. The medical bills were prior to my filing date, so they will be discharged at the end of the plan as well. I have a lot of maintenance medical costs monthly now from a CPAP machine, blood work, ECG's, and prescriptions that I didn't plan on having for the rest of my life.