Just Got Ch.7 Discharge-Should I Re-Open, or File Ch. 13 in Order to Avoid Liens
My question involves bankruptcy in the state of: Connecticut
We did our own Chapter 7 case in Connecticut, and we received a discharge when we had a continuance by the court to satisfy a requirement they now deem satisfied. In other words, we thought we had another 2 weeks to file our motions to avoid judgement liens, and then suddenly the case was discharged.
We were considering filing chapter 13 anyway, to get a payment plan for a student loan, a utility bill, and one-month-lateness on our mortgage.
We've never gotten a single phone call or letter about the $9K TERI student loan since it defaulted. Credit report simply says "turned over to government for collection." -- So... we're wondering if a payment plan directly with the gov. is possible, or whether our upcoming tax return will simply be garnished without notice. ....Is Chapter 13 wise in this case? The mortgage and utility bill we can probably pay off pretty quickly, so it's all about this gov. loan.
(We're self-employed.... and have not gotten any notices about garnishment...)
ALSO, I'm wondering if we're allowed to file motions to avoid liens in a new Chapter 13 case, when the debts related to those liens were discharged in our CHapter 7 case.
In other words, to make sure we get our tax return money and avoidance of liens (medical bills), is our best bet to file to reopen the ch. 7 case, or to file the ch. 13 case right now? (What's best for right now, regardless of whether we file 13 later on....)
THANK YOU!
Re: Just Got Ch.7 Discharge-Should I Re-Open, or File Ch. 13 in Order to Avoid Liens
You can contact the holder of the debt and try to work out a payment plan.
If your debts are only $9,000, Chapter 13 seems like overkill.
You should have included your dischargeable debts in your Chapter 7 bankruptcy. You don't make it clear that you didn't, or why you didn't. Whether or not you can reopen the Chapter 7 to resolve the debts depends upon their exact nature, and whether yours was a no assets Chapter 7 discharge.
Re: Just Got Ch.7 Discharge-Should I Re-Open, or File Ch. 13 in Order to Avoid Liens
Ack. I replied to this 2 weeks ago and my post didn't seem to publish. :/ I'm in urgent need of info. now. So thank you in advance. .... in reply:
Ours was a No Asset Chapter 7 case.
We DID include both the town/municipal utility bill and the student loan in our chapter 7 case, however, these are not dischargeable, and thus can only be worked out with a payment plan via Chapter 13. .... The utility is unwilling to make ANY payment plan with us directly and will shut water off this Friday. School loan-they want more than we can afford per month.
Our bankruptcy was medical based and many doc and lab bills come WAY late, and thus were not originally listed on our schedules, so I need to add those. I read that a no asset case doesn't have to be reopened just to amend/add small bills.
ALSO, the medical bills related to the liens WERE discharged, however, the liens were not. Lien removal has to be done through separate motions. We use the wrong procedure the first time and were told to do it over. While in the midst of that, as well as in the midst of making some small amendments, we were surprised to get a discharge notice. So now we're left wondering what to do.
So my question is still.... are we more protected from water shut off, collection AND liens if we re-open Chapter 7, or if we now open Chapter 13?
THANKS SO MUCH!