Voluntary Dismissing chapter 13 and filing chapter 7 Questions

[5sracing]

We will be expecting our first baby within the next two weeks. I am currently in a chapter 13, my wife is unemployed and she is not in a bankruptcy. After the baby is born we will be under the 6 month median and have a disposable income of less than $100 per month. I have the following questions when we do a joint chapter 7 filing:

1. Since we both will be filing chapter 7 I need to dismiss my chapter 13 because im adding my wife now.(currently in 1 yr now for ch 13) When i file a voluntary dismissal,
how soon can i stop making payments on my ch 13? We live in wisconsin.

2. Since we can add new expenses to the chapter 7 like the hospital bills. Can we still file the petition if we haven't received the final hospital bill. The reason i ask is because the birthing occurred before the filing of the petition. Do we have to wait for the final bill from the hospital?

3. Do I have to wait 180 days to file ch 7 after i dismiss ch 13 due to our circumstances? Also, how long before creditors will hunt us down when i dismiss. We plan on filing the petition asap when i Dismiss.

Thanks for your help

[despritfreya]

In response:

Question:

When I file a voluntary dismissal, how soon can I stop making payments on my ch 13?

Answer:

As soon as you have made the decision to seek dismissal of the 13.

Question:

Since we can add new expenses to the chapter 7 like the hospital bills. Can we still file the petition if we haven't received the final hospital bill.

Answer:

Yes. You can put any and all debt that has been run up prior to the filing of the 7 into the 7. Medical bills are incurred as of the date of treatment regardless of when the hospital/doctor gets around to billing. You want to hold off filing until all "treatment" has been completed.

Question:

Do I have to wait 180 days to file ch 7 after I dismiss ch 13 due to our circumstances?

Answer:

The Section 109(g)(2) eligibility rule for refiling after a voluntary dismissal only applies if a Motion for Relief From Stay had been filed in the 13. Assuming no such Motion was filed you do not have to wait. HOWEVER, you will want to file a Motion to Extend the Stay past 30 days as you may be deemed a "serial" filer under 362(c)(3).

Lastly I do not know how long it will take creditors to "hunt you down" once they are notified of the dismissal. Just stall them as best you can until you re-file.

[walkthaplank]

Can you not just convert yours to a CH7 and then have her file a separate case?

[despritfreya]

In response to:

"Can you not just convert yours to a CH7 and then have her file a separate case?"

That is an option. Good thought. One would not want to convert until all post petition debt (medical treatment) has been incurred so all can be added to the converted case. Once converted wife could file her own separate case.

Not sure which choice is better however this idea would eliminate the issue of "serial filings".