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Conversion of a Bankruptcy

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Anonymous
Not applicable

Conversion of a Bankruptcy

Has anyone converting their Chapter 13 Bk to a Chapter 7?? I had very little debt in comparison to most, i suppose but with my job loss, high medical bills, and a high interest car loan (not luxury just a basic fuel efficient car)  i was just under water.  i'm back on my feet after filing a chapter 13 but now thinking a conversion to a Chapter 7 would be best. I'm not sure what to expect and although i don't want to rush back in to a car loan i'm not sure my car would hold up much longer.  I'd really like a good cash car....just Looking for a little guidance...HELP. 

Message 1 of 8
7 REPLIES 7
Anonymous
Not applicable

Re: Conversion of a Bankruptcy

I would talk with your attorney. Are you able to keep your payments current with the Ch13? If so, you may not be allowed to convert it. You may also be able to get a vehicle during your Ch13 if the Trustee allows. Definitely speak with your attorney. That is why you are paying him/her. Good luck.

Message 2 of 8
stinastina
Established Contributor

Re: Conversion of a Bankruptcy

Yes ! And since the lawyer did most of the paperwork already, it was easy to convert it ourselves pro se. We even included the lawyer's fees when we amended the creditors. How far into the 13 are you ?

BK7 Discharge 1/16
10/15 ~ EQ: 406; TU: 520
10/18 ~ EX: 666; TU: 646; EQ: 652
Message 3 of 8
Anonymous
Not applicable

Re: Conversion of a Bankruptcy

Thanks for the info! I've been in the Ch. 13 for 4 months.  I feel it may be not be the best method for me.  My attorney said we would discuss payment for his fees as well....i knew that was another way.

Message 4 of 8
despritfreya
Frequent Contributor

Re: Conversion of a Bankruptcy

You have been in the Chapter 13 for four months. There had to be a reason you filed Chapter 13. Was it to save the vehicle? If the vehicle is no longer an issue (you want to let it go back to the lender) and you otherwise qualify for a Chapter 7 (meet the means test, have no positive cash flow with an amended Schedule I and J, and have no non-exempt assets you wish to protect) then conversion may be the way to go. You need to discuss this with your attny.

 

As to the attny fees, the fees owed for the 13 are wiped out in a conversion.  Attny may charge a fee for the conversion.  We typically charge the cost of attending a second 341 meeting plus the cost of the court's conversion fee since converting a case where the client "qualifies" is not a big deal.

 

Des.

Message 5 of 8
jacetx
Valued Contributor

Re: Conversion of a Bankruptcy


@Anonymous wrote:

Has anyone converting their Chapter 13 Bk to a Chapter 7?? I had very little debt in comparison to most, i suppose but with my job loss, high medical bills, and a high interest car loan (not luxury just a basic fuel efficient car)  i was just under water.  i'm back on my feet after filing a chapter 13 but now thinking a conversion to a Chapter 7 would be best. I'm not sure what to expect and although i don't want to rush back in to a car loan i'm not sure my car would hold up much longer.  I'd really like a good cash car....just Looking for a little guidance...HELP. 


I converted mine a few months after starting the payments on my CH13. My hours were reduced and I could not afford to make the payments. In my case it was the best option but as others suggested you need to talk to your lawyer and figure out if it is best for you.

Message 6 of 8
Anonymous
Not applicable

Re: Conversion of a Bankruptcy

Thanks everyone.... I met with my attorney today, you all gave me great talking points. i haven't made the decision. i am eligible to convert.  I want a house so that i can get out this rent race but not being able to build credit in the 13 and potentially needing a new ride in the near future. i'm so torn.  We did discuss how i like my "freedom" and that may be the biggest obstacle of the  13 for me.  Having to "ask" for everything.  I renewed my lease b/c i couldn't find anywhere that would rent to me in the ch 13. This just blows....i'm still undecided but hopefully i'll come to a decision soon.  Oh and he wasn't letting up on his fees one bit. 

Message 7 of 8
Anonymous
Not applicable

Re: Conversion of a Bankruptcy

Thank you! He is trying to make him put the Chapter 13 fees on a payment plan on top of the fee to convert, i felt like that was excessive. I will bring this up in our next meeting.  i appreciate your advice!!

Message 8 of 8
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