Questions about converting to chapter 7

[moorman]

currently in a chapter 13. the two main reasons why i filed were to keep a vehicle, and to have a judgment against me set aside. thinking about filing converting to a chapter 7. i have a few questions. im current on my payments.

1. if i let the vehicle go, about how long would i have before i have to surrender it?

2. im obviously paying my attorney thru the plan for his chapter 13 fees. would i have to pay him off before he could be retained to do the chapter 7 or do they normally have you reaffirm THEIR debt you owe them and they go ahead and convert your plan?

3. if i do have to pay him off ( i dont have the money to do that) how hard is it to convert it to a chapter 7 myself without a attorney?

[justbroke]

1. if i let the vehicle go, about how long would i have before i have to surrender it?

There is absolutely no way to know what the lender is going to do. I would expect 30 days. You may be surprised and it takes until the case is discharged and/or closed before they act. Given the reasonable expectation that it will take at least 30 days (time to convert, notice, motion for relief from stay, motion granted, repossession started), I would make sure all personal affects have been removed and nothing else of "value" is in the car after those 30 days.

2. im obviously paying my attorney thru the plan for his chapter 13 fees. would i have to pay him off before he could be retained to do the chapter 7 or do they normally have you reaffirm THEIR debt you owe them and they go ahead and convert your plan?

This is a question for your current attorney or your new attorney. Generally, you will need to pay the attorney before s/he files Chapter 7 since his fee could be discharged. The other fees in the Chapter 13 could be considered administrative expense and non-dischargeable. You really need to speak with your Chapter 13 attorney about this. Most attorneys performing conversions typically charge a lot less since they already have your file.

3. if i do have to pay him off ( i dont have the money to do that) how hard is it to convert it to a chapter 7 myself without a attorney?

Converting to Chapter 7 is as easy as filing a Notice of Conversion with the court (and serving it as required under the FRBP). However, you really need to understand many things such as whether your property vested back in the debtor upon confirmation, the affect of the Chapter 7 on any newly acquired property since filing the Chapter 13, disposition of property (like your car, which you could Redeem in the Chapter 7 under 11 USC 722). You would also need to worry about the Chapter 7 liquidation test. If this is all Greek to you, then you are not ready to file on your own.

[moorman]

There is absolutely no way to know what the lender is going to do. I would expect 30 days. You may be surprised and it takes until the case is discharged and/or closed before they act. Given the reasonable expectation that it will take at least 30 days (time to convert, notice, motion for relief from stay, motion granted, repossession started), I would make sure all personal affects have been removed and nothing else of "value" is in the car after those 30 days.

This is a question for your current attorney or your new attorney. Generally, you will need to pay the attorney before s/he files Chapter 7 since his fee could be discharged. The other fees in the Chapter 13 could be considered administrative expense and non-dischargeable. You really need to speak with your Chapter 13 attorney about this. Most attorneys performing conversions typically charge a lot less since they already have your file.

Converting to Chapter 7 is as easy as filing a Notice of Conversion with the court (and serving it as required under the FRBP). However, you really need to understand many things such as whether your property vested back in the debtor upon confirmation, the affect of the Chapter 7 on any newly acquired property since filing the Chapter 13, disposition of property (like your car, which you could Redeem in the Chapter 7 under 11 USC 722). You would also need to worry about the Chapter 7 liquidation test. If this is all Greek to you, then you are not ready to file on your own.

when you say SERVE the notice of conversion, are you talking about serving the trustee or EACH creditor in the chapter 13? i have no property so im not worried about who gets what. i have nothing to liquidate and i can past the means test IF required. i read up on it and some jurisdictions require you to prove it in a conversion, some dont. another thing,from what i read, is knowing WHAT a particular jurisdiction wants as far as forms in a conversion. ( may have to amend some schedules, etc.)

[justbroke]

Here's my strategy. If you qualified for Chapter 7 at the time you filed Chapter 13, then I would file a new Means Test (on B22-A) regardless of the requirement in the District. That stops all the bickering right there.

The major question is what happens to your unpaid "attorney" fees from the Chapter 13. Were they ust monitoring fees or the remainder of the balance for filing the Chapter 13. I don't know if they are given administrative priority and are non-dischargeable. That would be something that you would need to discover and take care of.

Service is based on your local rules. In some Districts, the Case Manager in the Clerk's Office will take care of service. There are also other service requirements if you are adding new creditors under 11 USC 348.

I wrote some things in one of my blogs on conversion. It is not meant to be a practice guide and I can't really give you any legal advice on "how" to prosecute the conversion. I will say one thing... if your case had never been previously converted, ALWAYS convert by Notice under 11 USC 1307(a)!!!!

You should read up on your Districts local rules and local procedures on conversions.