New Payday loans(not wise) currently in chap 13, want to convert

[fournee1]

% to unsecured or unsecured plan base----14%

Filed chapter 13-6/10/11,,
Confirmed 7/6/11

Plan Base---13,680
Total pd into plan---5,510
Total pd to all parties----5,130
Total pd to creditors----4,883

Atty fees---- 3,500
Atty fee pd to date ----3,153


I am on a 3 year plan, paying 400.00 per month which I can not afford. I was behind in rent and had to take out a payday loan. The only creditors being paid from the trustee is the atty fees and my car loan. the other creditors aren't getting anything yet per 13datacenter case summery. I want to keep my car, ( if I didn't file bk, it would have been paid in full). I want to convert to Chap 7. Not sure how much I would have to pay for the conversion, but I guess I will ask atty.

Do I have to give my car back?
Can I add new creditors to the chapter 7 conversion?
If I don't convert, can I add new creditors to my chapter 13?

My trustee payments are taken directly from my payroll check. I have 2 more years left on my plan and it rough. How much would be an average chapter 7 bk? Would I get some credit from fees already pd for chapter 13(3100.00)?


Thank you.
Chicago Girl

[SMinGA2]

If you convert, I believe you will still owe the PDLs. Conversion considers your original file date, meaning debts accumulated since filing are your responsibility. Confirm with your attorney, of course, but your only option (to get rid of the PDLs) may be to dismiss and then later refile a chapter 7 if you're able. Filing fees for the 7 would depend on the complexity of your case, etc.

I don't believe you can simply incur new unsecured debt and then add it to an existing plan - unless perhaps you're set to pay 100% to unsecured. There may even be a provision in your plan that you may not acquire debt without trustee approval. You might want to schedule a face to face with your attorney asap.

[momofthree]

Why did you file ch.13? Did you qualify for a 7 when you filed?

[AngelinaCatHub]

If you convert, I believe you will still owe the PDLs. Conversion considers your original file date, meaning debts accumulated since filing are your responsibility. Confirm with your attorney, of course, but your only option (to get rid of the PDLs) may be to dismiss and then later refile a chapter 7 if you're able. Filing fees for the 7 would depend on the complexity of your case, etc.

I don't believe you can simply incur new unsecured debt and then add it to an existing plan - unless perhaps you're set to pay 100% to unsecured. There may even be a provision in your plan that you may not acquire debt without trustee approval. You might want to schedule a face to face with your attorney asap.

Pay Day loans, wow. Please do a search here on what others feel about PDL's. It is a slippery slope to destruction and becomes a Peter/Paul expense. Also I have to agree that your best bet would be to abandon the 13 and force a dismissal. Be real careful not to incur ANY KIND of new debt as they (the Court) may look a bit closer at your situation and life style. I'd wait as long as possible and I do believe your automatic stay once you refile may not be as satisfactory after abandoning you 13. Check out the time limits on this. Also you may be sued once the bk is dismissed. All holds and tolls are off at that time. Think real clear on this and pay for the lawyers advice as an investment. Don't only go by what we say. Pay for professional advice and hope it is right. 'Hub BTW welcome to the Forum.

[HHM]

First, you need to qualify for chapter 7 now.

Second, yes, you can include "gap" debt in the converted case. e.g. Filed chapter 13, incurred new medical from car accident, convert to chapter 7. That new medical becomes part of chapter 7 (even though conversion relates back to the chapter 13 filing date).

The issue is bad faith.

As for the car, if you would be considered current on payments, then keeping the car should not be a problem. If you are not current on payments, then you have a problem and will need to look into Redemption.