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Hubby demoted, conversion to a Chapter 7!

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    Hubby demoted, conversion to a Chapter 7!

    Just wanted to share this! So, we've been in our Chapter 13 plan paying $405/month with no problem for a year and a half until this month. Let me just say, June has been a spectacularly sucky month until today! June 1st my husband called and told me that he had been demoted and transferred to a different store. We did the math and we figured out we were losing about $1,200 a month in income. Now, the reason we were in a Chapter 13 in the first place is because *I* made too much money (and I'm only part-time up to 36 hours a week) and it pushed us JUST OVER the median income guidelines (I think, if I got that right) to qualify for a Chapter 7 in the first place. So, now we had gone in the opposite direction, making less than we were before we filed for our bankruptcy in January of last year.

    We called our lawyer in a panic and we saw him this morning. He told us to BREATHE and that he foresaw no problem in converting to a Chapter 7 since we don't have a mortgage or a car tied into it. He wants 4 weeks of paystubs for hubby, my paystubs since Jan (got a raise, but yay for having to buy my own health insurance, parking fee, etc so it's probably LESS than what it was before in take home pay, lol) and our tax return for 2011, just in case (small refund from Federal, but we owe to State). He told us to not bother with the payment for this month or next as it takes two months of not paying our payment to the Trustee in this state before a motion for dismissal is filed by the Trustee. He said he would file the conversion well before then, so it wouldn't matter, but even so the Trustee would inquire as to why no payment first. I was panicking about the payment for this month because the sudden change in income would only allow me to make a half payment and I was freaking out about how to pay for my daycare, groceries, my utilities...

    I totally blanked on asking him how long it takes to convert from a Chapter 13 to a Chapter 7, so if anyone has an idea I'd like to know.

    For the first time since June 1st, I think my hubby and I are actually GRATEFUL for the demotion, because it will allow a conversion and discharge of our bankruptcy (just to be clear, we were fine with the Chapter 13 plan). Our lawyer was also able to tell us that court had paid our tax debt that was included AND our car payment in arrears. He said that it was interesting how the universe favored us as it usually takes the court all of the five years to pay the leasing company (Carmax) when an arrears car payment is included.

    I've called Carmax and the woman was delighted to tell me that yes, in fact, the court paid them last month and would I like my title now?

    I could seriously cry happy tears right now!

    #2
    I have to say *Congratulations!* to you and DH.

    We were originally planning to file a CH13 ourselves, even though the pre-filing credit counselor told us that with our income and outgo, we were more suited to a Ch7. Then I lost my FT job, and in a similar situation to yours, we had to file a Ch7. We had not yet filed, all this happened before we did, so we didn't have to go through the conversion. Though we had to make monthly payment to buy our non-exempt stuff back from the BK estate, which mad our case feel like a Ch13, once we got the discharge, we were more than happy that things worked out the way they did. So I am happy for you, and that is why I am saying Congratulations!!!

    With that said, look around for our member and moderator, justbroke's blogs. He filed a Ch13 pro se, and then converted to a Ch7. That my give you some insight to the process.

    May I also offer Congratulations on having what sounds like a super attorney. That makes all the difference.
    "To go bravely forward is to invite a miracle."

    "Worry is the darkroom where negatives are formed."

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      #3
      Congrats, my wife and I are in the middle of a conversion right now. She quit her job a couple of weeks ago, we got the trustees motion to dismiss the same day (two months missed payments at lawyers instructions) and our lawyer filed the conversion yesterday. Our lawyer told us that we'll get a new 341 date about 6 weeks from the date motion to convert and then it will follow the normal timeline for a CH7. We also haven't given the CH13 trustee our tax refund checks, our lawyer says he thinks he can find a way for us to keep that money too as the CH13 trustee should was his hands of the case after conversion motion is filed. I'm not holding my breath for that, but he seemed very optimistic.

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        #4
        Originally posted by AngelinaCat View Post
        I have to say *Congratulations!* to you and DH.

        We were originally planning to file a CH13 ourselves, even though the pre-filing credit counselor told us that with our income and outgo, we were more suited to a Ch7. Then I lost my FT job, and in a similar situation to yours, we had to file a Ch7. We had not yet filed, all this happened before we did, so we didn't have to go through the conversion. Though we had to make monthly payment to buy our non-exempt stuff back from the BK estate, which mad our case feel like a Ch13, once we got the discharge, we were more than happy that things worked out the way they did. So I am happy for you, and that is why I am saying Congratulations!!!

        With that said, look around for our member and moderator, justbroke's blogs. He filed a Ch13 pro se, and then converted to a Ch7. That my give you some insight to the process.

        May I also offer Congratulations on having what sounds like a super attorney. That makes all the difference.
        Thank you! Glad things worked out for you as well! :-) I will look for justbroke's blogs for sure!

        Yea, our attorney is awesome so far... I recommended him to a coworker and she loves him as well (he's working with her on her payments to him). :-)

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          #5
          Yay for your conversion!! So, you would say a couple of months then from start to finish?

          I hope you do get to keep your tax refund checks! At least you have them to give if you need to! :-)

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            #6
            That is what he told us. Of course things being what they are, your mileage may vary ;)

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              #7
              Congratulations on your hubby's demot.... errrrr..... your conversion!

              Such a twisted world the BK world can be!
              LadyInTheRed is in the black!
              Filed Chap 13 April 2010. Discharged May 2015.
              $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

              Comment


                #8
                Originally posted by LadyInTheRed View Post
                Congratulations on your hubby's demot.... errrrr..... your conversion!

                Such a twisted world the BK world can be!
                Thank you! Yea, things are WAAAAAAAAAAAAAAY better now and he's found a new perspective on his job and we are making future plans for what we want to do, where we want to live (we want to move out of state), etc. but I told him we need to do all that once we know 100% it's been discharged. LOL

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                  #9
                  Let me add my congrats to you as well! Lady is so right... where else will you get this sort of celebrating over a demotion?
                  Filed Ch 13 Feb 9, 2012, 341 meeting Mar 15, 2012, Confirmed Apr 5, 2012
                  Anticipated freedom party Apr 2015

                  Comment


                    #10
                    Originally posted by TheBajan View Post
                    Let me add my congrats to you as well! Lady is so right... where else will you get this sort of celebrating over a demotion?
                    Haha, nowhere else! And that's great, you are all always so supportive and wonderful. I usually lurk thru threads, but it's a great community that exists here to help each other (some snarkiness aside at times).

                    Comment

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