conversion from 13 to 7 question

[coronaglen]

@mylife, i am afraid to raise flags with my trustee as my income has increased over three and half years. what state are you in?

[mylife]

@mylife, i am afraid to raise flags with my trustee as my income has increased over three and half years. what state are you in?

Hi coronaglen

We live in MD. My husband's income increased 5% and mine is the same, but our expenses increased along with deductions.

[mylife]

Please explain how surrendering a vehicle works. Our vehicle's loan is appx 26k and the cram down is at 14k. The current cram down balance is appx 8k. If we surrender, what happens? Will we be responsible for any amount in the plan?

Thank you

[justbroke]

I'm a little late to this. I've been on vacation! I just wanted to let everyone know that under 11 USC 348(d), you do get to take the new debts since the filing of the Chapter 13 and add them as new debts in the Chapter 7 case. The new debt is treated as though it existed on the date you filed the Chapter 13 (the original case).

[justbroke]

Please explain how surrendering a vehicle works. Our vehicle's loan is appx 26k and the cram down is at 14k. The current cram down balance is appx 8k. If we surrender, what happens? Will we be responsible for any amount in the plan?

Technically, any deficiency would become an "unsecured" claim. The creditor would be paid pro rata based on what the unsecured creditors receive from your "disposable" monthly income (DMI).

[mylife]

Technically, any deficiency would become an "unsecured" claim. The creditor would be paid pro rata based on what the unsecured creditors receive from your "disposable" monthly income (DMI).

Thank you Justbroke