turn 7 into 13

[worriedbk7]

Quick question...if my chapter 7 has a lot of creditor objections, and I chose not to settle with them and it turns out that they fight it, at that point, can I change into a chapter 13? I have a feeling that some cc are going to object due to my stupidity and cash advances (gambling). At what point can't I go from a 7 to a 13?

[HHM]

You can convert anytime you want, but you have to demonstrate that you have disposable income in which to pay a plan.

The draw back to converting to a 13 from a 7 is that you then can't voluntarily dismiss the 13 if things get messy. Normally, you can dismiss a 13 without going to court, but if you convert, you lose that right and have to go before the judge an show cause why your 13 should be dismissed.

Also, just because you convert, doesn't mean those creditors still can't object to the discharge of their debt, or claim a priority of some kind in the plan.

Do you have an attorney?

[worriedbk7]

yes, I have an attorney. I am really just trying to educate myself. No offense to lawyers, but they make mistakes too, and I just want to know all my options. How can creditors object to a chpt 13? I thought that everything is pretty much dischargeable and you have to pay back a certain percent. If a creditor objects, then what happens? Is there a chance that I would have to pay back the cc 100%? This stuff is driving my crazy! Thanks for all your help and advice HHM. It truly does mean a lot

[HHM]

If the creditor is successful in their objection, then you would have to pay back 100% of the disputed amount and the debt can NEVER be discharged in the future and they can use the full force of the law to collect against you.

Have any of these creditors offered reaffirmation agreements. Basically, when you have cash advances or gambling debts within six months of filing of BK, you will have to pay some of it back despite your bankruptcy. Usually what happens is that you can negotiate a reaffirmation agreement with the creditor to payoff a reduced amount of the balance owed at zero percent interest over 1 to 3 years.

If you otherwise qualify for a chapter 7, then you want to stay in a chapter 7 if you can.

[worriedbk7]

Okay...I understand. I do want a chapter 7. My lawyer thinks he can "swing some numbers" to qualify me for a 7. If I am reading you correctly, you think that it isn't a bad idea to settle with cc IF they object or offer a reaffirmation? The gambling debt all occurred about 5 months ago (waiting one more month to file). I have documentation of it all and my husband was making about $24K more a year last year so we did actually intend on paying it back (I thought I could win it back--HAHA I learned the hard way) Maybe that would be enough of a reason for them to drop it. It seems like now I am gambling with this decision--ironic???

[Minnymouth]

Life is a "gamble" in many ways anyways, but gambling with your "bread and butter funds" can be devastating. Next time - have a new love affair with the spouse (that could be interesting) and stay away from the gambling. Its known and "be kind to yourself and yours!
Hope it all goes well for you - Good Luck

[worriedbk7]

I wasn't actually gambling with my "bread and butter" funds. My husband and I were making quite a bit more money. It is just an unfortunate turn of events that he lost his job and we are now struggling. I don't think anyone plans to file bk. Certainly when I was gambling (with the money I could and intended to pay back) I did not know that my circumstances would be this way in 6 months. The last thing I wanted to do was ruin my credit. I have always had a 730 credit score and been really responsible. I know I have a problem, and that is another issue that is being dealt with.

[Minnymouth]

My apologies for speaking out of turn. Did not mean to "pass judgement" on you in any way. Did not intend for you to take it that way. SORRY!
All of us in the forum are victims of bankruptcy or fixing to file. Either thru unfortunate medical bills, our own doings, or thru the fate of the actions of others.
We have all struggled trying to survive it all without filing BK.
And the end result is that a lot of times BK is the only relief for it all.
Good luck to you and yours.
Let this forum help guide you down your path, it will help you to talk about it and the advice is mostly wise.
Next time I will "think" before I speak.....
Minnymouth :o

[worriedbk7]

No problem..I am just a little on edge lately (hmmm...I wonder why). I know that most if not all people in this forum are supportive and I really appreciate that. Thanks for taking the time to respond to my problem. I pray everything goes well with my most complicated situation.

[Minnymouth]

Worriedbk7,
Have you had your 341 meeting yet? Anyone show up for it besides Trustee??
Also you can use "Pacer" to see if anyone has filed a complaint against you with the court. They have to file a motion of objection I think and it would show up on your file on pacer.
My trustee even had to file an "adversary complaint" to take my home when he found an unperfected title.
My BK is still in limbo - has been since June of last year, thanks to one of my creditors (the mortgage company).
So check on pacer at least once a week.
Stay calm (and that was hard for me to do), do your research, keep an eye on what your lawyer does.
And hopefully it will all work its way out.
I also think Chapter 7 is your best outlet under your circumstances.
Good Luck

[worriedbk7]

I haven't even filed yet? So that is more stressful...and more TIME that I have to wait. I am not a patient person. I just keep saying to myself, "this too will pass". In a year or two from now, things will be better. I really hope things work out for you Minnymouth. Keep us posted. You are in my thoughts