In a Chapter 13 convert to a Chapter 7, do they still go back only six months?

[espo1357]

Just wondering, as I may convert because I no longer want the home.

Thanks.

[catleg]

I believe there is some case law stating that the means test does not apply to good faith chapter 13->7 conversions.
There was one decision by Judge Gloria Burns in the NJ district In Re: Fox

[espo1357]

Thanks for the information. I flip flop all the time with this, because I can afford the mortgage. A wise man once told me that if you are not over 100 percent sure on something, then sit still and don't do anything.

[espo1357]

I believe there is some case law stating that the means test does not apply to good faith chapter 13->7 conversions.
There was one decision by Judge Gloria Burns in the NJ district In Re: Fox

Her paycut made the transition easy.

Not sure what happens to a person WITHOUT the pay cut.

[justbroke]

While they say that the Means Test doesn't apply in certain Districts, you still really need to qualify. It's always best if you qualified from the start of the Chapter 13, as I did. You're in Alabama which is 11th Circuit (Court of Appeals), and I believe that the last State to look at this in the 11th was Georgia. The only thing Georgia did was mention that if you were under the median on B22C (Chapter 13 Means Test), then you didn't need to complete one for the Chapter 7. That tends to give credence to the fact that an over-the-median income debt would need to complete a new Means Test (B22A).

I would check with your specific District, because the Bankruptcy Rules (FRBP) do require it upon conversion. In practice, only 3 Districts have published opinions on this with New Jersey being in the minority.

[espo1357]

While they say that the Means Test doesn't apply in certain Districts, you still really need to qualify. It's always best if you qualified from the start of the Chapter 13, as I did. You're in Alabama which is 11th Circuit (Court of Appeals), and I believe that the last State to look at this in the 11th was Georgia. The only thing Georgia did was mention that if you were under the median on B22C (Chapter 13 Means Test), then you didn't need to complete one for the Chapter 7. That tends to give credence to the fact that an over-the-median income debt would need to complete a new Means Test (B22A).

I would check with your specific District, because the Bankruptcy Rules (FRBP) do require it upon conversion. In practice, only 3 Districts have published opinions on this with New Jersey being in the minority.

Thanks for the information. I am on the West Coast, I just put Alabama for shits and giggles, and I want to stay somewhat private.

I did qualify for the 7 when I filed for BK, but that was before my loan got modified. At the time, I wanted to keep the home, so I did the 13. Immediately, the vultures (the bank) decided to give me my loan modification, which seemed good at the time, because I had my head up my ass.

But, now I see clearly, and I don't see a future in this town. Also, the home is upside down over 200k (the lien strip would take another 80k off, so it would still be under 120 or so if I completed the 13).

Anyway, now I want to let the home go.

So, I will speak to my attorney about this. Perhaps, since I qualifed for a 7 when I filed BK, I may still qualify at this time, as my income as stayed the same.

I am not sure that the lower mortage payment via the loan modification will make the difference and not qualify me for the 7. I guess I will find out shortly.

Thanks for the feedback all of you!

[catleg]

Thanks for your input justbroke.
That's why I qualified my remarks with "good faith".
It seems nothing is quite written in stone, the 2005 law is still being "debugged".

[justbroke]

That's why this is still so much fun catleg... blue sky!