Conversion of Chap 13

[missy42]

So I have a question.  I am currently in a Chap 13 because I was told I could not file a Chap 7.  Fast forward to this week and out of curiosity I contacted another BK Attorney who advised he can convert my Chap 13 to a Chap 7.  I of course know all the benefits of a Chap 7 vs Chap 13. I am a disabled vet living in FL.  My current annual income is above the median for a single person in FL.  My secured (priority debts) are as follows:   mortgage and mortgage arrears (current lawyer told me to stop paying it and for months told me I qualified for Ch 7, I was current on mort when I contacted him), car loan ($584 per month), IRS debt for about 16K, lawyer fees (paid cash of $300 retainer, $1700 ch 7, $1000 foreclosure fee that he said would happen since I initially was told I could file Ch 7, and $1795 (amount included in Ch 13 plan and $1130 have been paid from plan by trustee and of course trustee fees.

BK attorney I contacted said he could file Ch 7 for $750 and I could keep my home under state exemptions for FL.  

At this point I'm so tired of living in the poor house and would love to do a Ch 7 and get my life back on track.  I'm so afraid to stay with this 5 yr plan but I'm equally wondering will I truly qualify for Ch 7.  

I am not rich by no means and new attorney says he has successfully gotten folks with higher income and no mortgage into a Ch 7

Please chime in if you are in FL and think this is possible and happen to know the law.  

My current health issues are already bad and the stress of this Chap 13 for 5 years is making my anixety even worse.

I have see several post that suggests I do qualify for a 7 from my earlier nightmare post in late 2017.  Thanks in advance.

Current Ch 13 payment is $2450 a month for 5yrs.  If I have to do 13 I would rather get rid of home and car to lower payment.  This to me is all a mess and I feel ripped off by current attorney and wonder why anyone would do this to anyone let alone a disabled vet. 

[despritfreya]

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@missy42 wrote:

(as restated below)

I am a disabled vet living in FL but have take home pay of approx $_________/month plus VA disability of $_______/month.

My current annual income is above the median for a single person in FL.

I am currently in a Chap 13 because I was told I could not file a Chap 7.

My Ch 13 payment is $2450 a month for 5yrs for a total plan yield of $147,000. That money is being used to pay the following:

administrative attny fee - $1,795

mortgage arrears - $ ___________

car with interest at __ % - $_________

tax debt - $16,000

everyone else - $______________

Trustee - up to 10% of the above

BK attorney I contacted said he could (convert my case to a) Ch 7 for $750 and I could keep my home under state exemptions for FL.

 

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Please fill in the above blanks and maybe I can chime in.

Des.

[Anonymous]

Were more than 50% of your debts incurred while Active Duty? If so, you can skip the means test if you have >30% disability and majority of your debts were incurred while in the service. 

[missy42]

No I wish I retired in 2006 and I didn't have any of this debt at the time.

[missy42]

Hey Des, please check your private message for response. Thanks

[despritfreya]

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@missy42 wrote:
Hey Des, please check your private message for response. Thanks

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I just responded.

Des.

[missy42]

I've paid the new attorney the $750 fee and so Monday they will file to have Chapter 13 converted to Chapter 7. I've decided to give up home and car to get a real fresh start. I'll keep you posted just waiting for 341 meeting and hopefully discharge in 4 months or less. Not sure how long it will take to foreclose on the home but I plan to stay put and will leave once it gets close. I'm relieved but trying not to become over confident since I feel like it's been a roller coaster ride with this Chap 13. They really need to change the entire 13 process, it's not really a help and I had nothing to live on trying to keep up those high payments for 5 years just give me a 7 and let me move on with my life. Thanks again for your input, I'll keep you posted!

[missy42]

Well it happened, my Chap 13 was dismissed yesterday, new attorney says I can't convert to Chap 7 no way I can meet the means test. Now I'm not only stuck with Chap13 I also have a dismissed that hit my reports same day.
They are in the process of filing motion to reinstate with modified Sch I&J's in hopes of lowering my payments.
What's the chance of payments restarting 30 days after? I really need a cushion so many things to take care of I need to skip a few payments to get it all done. Just trying to understand, new attorney seem to think it won't be a problem but I need to know in advance. I feel like all attorney's are just about the $. So disappointed in everything. If you get a chance to respond please do. Thanks in advance.