Chapter 7 discharged but trustee wants to reopen and convert to 13

[egold1234]

Pretty much the trustee believes my assets are worth more than what I believe. Even though I've been discharged I have to convert to a 13. How will this effect the credit I've built? Am I back to square one? Can I continue to utilize these cards while in a chapter 13?

[ezdriver]

That's unusual but the trustee obviously has legal standing to reopen the case based on new information. What do you think the trustee has learned about your case after the discharge that wasn't known before the dicharge. How long ago was the discharge?

[egold1234]

I was discharged Nov 2014. I have a state license in my name but the buisness is actually my ex-girlfriends. She asked me to hold the license in my name because at the time she did not qualify to hold the license herself. I disclosed this to the trustee at the 341 hearing orginally but now he decided since I hold the license that I am the buisness owner. In hindsight we should have just waited a few months and she would have qualified herself and this would never have been an issue. 

So to protect an asset that isnt actually mine I have to do a chapter 13 and essentially pay for what the buisness is valued at. My girlfriends faimly offered to help me out with this but it still sucks. I do have some private student loan debt and tax debts that weren't discharged so maybe this might help me pay them down (I've tried settling after bankruptcy and I simply can't afford it)

My biggest concern now is what happes to all my hardwork over the last few months with building my credit? Will all my accounts be closed when I convert to a 13?

I'm reaching the point where it may just be more beneficial for me to relocate to another country where faimly is located. The stress of dealing with all this has me down 30lbs in the last 2 weeks (a plus, I guess) but I'm really not ready to go through this again.

Thanks

[Pway]

I am so sorry to hear about your case.  Stressful I could understand.  Wow, how unfortinuate

[egold1234]

It's so upsetting. Especially since i've worked so hard the last few months rebuilding my credit. I'm up to 630 and was just approved for a 3k Quicksilver card. Now its like a 5 year stand still. 

[gdale6]

I would hire a lawyer and fight it.

[Pway]

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@gdale6 wrote:

I would hire a lawyer and fight it.

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I agree with gdale6

[Anonymous]

The creditor will close the accounts. Is the business doing good? Did you file the business on your tax return? What type of business is it?

[Anonymous]

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@Pway wrote:

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@gdale6 wrote:

I would hire a lawyer and fight it.

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I agree with gdale6

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I agree.  Hire an attorney or at least talk to one.  See what options you have.  Hopefully it all works out for you.  

[despritfreya]

"Pretty much the trustee believes my assets are worth more than what I believe. Even though I've been discharged I have to convert to a 13."

I think you will need to get that discharged revoked before you can "convert". Further, while you certainly can file a Motion to Convert, there is no guaranty that the Motion will be granted if the 7 Trustee objects.

 I trust you have an attorney. If you don’t you better get one.

　

"How will this effect the credit I've built?"

This is now the least of your worries.

　

"I was discharged Nov 2014. I have a state license in my name but the business is actually my ex-girlfriends. She asked me to hold the license in my name because at the time she did not qualify to hold the license herself. I disclosed this to the trustee at the 341 hearing originally but now he decided since I hold the license that I am the business owner. . . So to protect an asset that isn’t actually mine I have to do a chapter 13 and essentially pay for what the business is valued at."

If you have no ownership interest in the business and can prove that you have not put one dime into its operations and have not shared in any of its profits, why are you worried and running to a Chapter 13? Trustees investigate things like this all the time. If the debtor has no equitable interest in the asset the Trustee will abandon it. In the alternative, a debtor can offer to kick in a few bucks to "make it go away" - something that is darn cheaper and easier to deal with than going to a Chapter 13.

Again, I sure hope you have an attny because, if you don’t and continue dealing with this on your own you are making a big mistake.  Your credit rating is now the least of your problems.

Des.