Trustee recommeding Ch7 to Ch13

[BKer]

So close to discharge and now the trustee stated that our Ch 7 case be dismissed to Ch 13 for 3 years at $500/month. Does this mean we are stuck now? No hopes of a ch 7? Reasons included that I am paying to much in federal/state taxes, that our pet expenses are too high at $90/month, and that our cell phone/home phone expenses are too high at $162. We are totally bummed.

[StaciMM]

Wow. Do you generally get a decent tax refund? I can't imagine any other reason for him/her to complain about withholding taxes. Even if you cut your phone & pet exp. in 1/2, that is only $135. How much difference between income & expenses in your original schedule? Perhaps your attorney can get them to lower the payment amount...

So close to discharge and now the trustee stated that our Ch 7 case be dismissed to Ch 13 for 3 years at $500/month. Does this mean we are stuck now? No hopes of a ch 7? Reasons included that I am paying to much in federal/state taxes, that our pet expenses are too high at $90/month, and that our cell phone/home phone expenses are too high at $162. We are totally bummed.

[BKer]

normally our refund is like $2000. Not very much.
The difference between net income on the schedules is ~$900.

[ducksinarow]

Wow, $500.00 a month is a lot.

Will you be able to do it, realistically?

How much are you in debt?

[Minnymouth]

REMINDER -
If you have over $100.00 a month in disposible income the Trustee can suggest and Chapter 13...........

Usually they will go higher on the amount. Anything $200.00 or more will result in a 13 usually.

If you have $900.00 a month in disposible income - you will be in Chapter 13 paying out at least $500.00 a month..

Minny

[BKer]

Just wanted to give an upate on this...

After reviewing the dismissal paperwork from the BK Analyst, I saw that he made several mistakes. The big one was that he did not calculate my federal/state witholding correctly. He stated that I was overwitholding by $600/mo. As it turns out, I am overwitholding by $105 a month or $1267 a year. My lawyer is in the process of putting all our data together and asking him to dismiss his dismissal.

It's interesting to note that when he asked for our medical bills, we showed him a strong case of $774/mo for the next 3-years at least. He did not include that in his case for dismissal, but rather only listed the $560/mo we reported on our Schedule J.

[hhou812hh]

If you are forced into a ch13 (under current law) the judge and your atty can usually negotiate this. This is one area that we can kiss goodbye under new law. I was going to propose about 500 under current law and that's about what the means test has me for anyway. What stinks is it's 5 years and no more 3 unless it's paid in full.

Good luck!

[BKer]

Well, the US Trustee dismissed the dismissal in our Ch 7 case. We are discharged and our case was closed the same day. Pretty cool, but it was a long haul. Glad it's finally over.

[skyan]

I am so happy for you! What a relief..... Good luck with your future.

[hhou812hh]

Well, the US Trustee dismissed the dismissal in our Ch 7 case. We are discharged and our case was closed the same day. Pretty cool, but it was a long haul. Glad it's finally over.

WOW! Good deal! I guess the courts are so backed up they just said to forget it. If they found $500 available at the end of the month the judge would surely side with the US Trustee under 707(b).

[edwards2]

Congratulations....that was so smart of you to double check behind the trustee....I know you are so relieved...you earned your discharge big time! Just as an aside we had to face the firing squad ala trustee too and plead our case. We too were blessed the trustee decided to withdraw her objections to our discharge. Good luck......