Filed Ch13 December 2019, 100% repayment
After making 19 on-time payments to Trustee, my husband lost his job.
We contacted our attorney who worked with the Trustee to get us 2 months' reprieve on payments.
In the meantime our income for the previous 6 months has dropped below state median, so we now qualify for Ch7 without going through the means test.
The attorney advised us the rules that were in place at the time of initial filing exempt $100k of home equity, and due to the crazy home prices around here (Southern California) we now have approximately $390k equity. For this reason she has recommended dismissing the Ch13 and re-filing as a new Ch7 to take advantage of the now much more generous homestead exemption. The current homestead exemption in our county is $487k!
Our attorney told us if my husband gets a new job after filing for Ch7 that it doesn't count against our petition and won't be used by the Trustee as a reason to dismiss. She said it takes into account what is actually on the date of filing, and not what comes afterward. I am a tiny bit concerned about this but hopefully my husband will find a fabulous new job at the right time so it doesn't mess up our BK filing.
She told us it will probably take a few days up to two weeks for our request to dismiss the Ch13 to works its way through the courts to be signed by the judge, and we can then file Ch7 immediately afterward.
Wish us luck!
After making 19 on-time payments to Trustee, my husband lost his job.
We contacted our attorney who worked with the Trustee to get us 2 months' reprieve on payments.
In the meantime our income for the previous 6 months has dropped below state median, so we now qualify for Ch7 without going through the means test.
The attorney advised us the rules that were in place at the time of initial filing exempt $100k of home equity, and due to the crazy home prices around here (Southern California) we now have approximately $390k equity. For this reason she has recommended dismissing the Ch13 and re-filing as a new Ch7 to take advantage of the now much more generous homestead exemption. The current homestead exemption in our county is $487k!
Our attorney told us if my husband gets a new job after filing for Ch7 that it doesn't count against our petition and won't be used by the Trustee as a reason to dismiss. She said it takes into account what is actually on the date of filing, and not what comes afterward. I am a tiny bit concerned about this but hopefully my husband will find a fabulous new job at the right time so it doesn't mess up our BK filing.
She told us it will probably take a few days up to two weeks for our request to dismiss the Ch13 to works its way through the courts to be signed by the judge, and we can then file Ch7 immediately afterward.
Wish us luck!
Bankruptcy Wizard
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