Results 1 to 6 of 6
  1. #1
    Join Date
    Oct 2005
    Location
    indiana
    Posts
    7

    Default Converting Chapter 13 Bankruptcy to Chapter 7 Bankruptcy

    Here is my question. I have my 341 meeting next week. In the meantime due to an economic downturn I may lose my job. I am 6 months pregnant and the chances of someone hiring me are slim. If I do get laid off, would this be a good reason to change from chapter 13 to chapter 7. what would my options be. At this point I am not sure if I would even try and get a new job until after the baby is a year old. This would significantly lower our (my husband included) income and we would not be able to afford or chapter 13 payments. One more thing, at this time, if it were to happen...we have been making money orders every week that we need to bring to the trustee at our meeting, would those be given back to me? I am behind in my mortgage due to other unforseeable events (furnace failing, and vet bills). Thank you for your help

  2. #2
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Converting Chapter 13 Bankruptcy to Chapter 7 Bankruptcy

    The diminishment in income may well provide a basis for converting from Chapter 13 to Chapter 7 bankruptcy. However, if the reduction in income is deemed voluntary, that might not happen. (So it is probably best to act expeditiously.)

    It would likely be beneficial to discuss your situation, income, assets, and plans with a bankruptcy lawyer, and to form a strategy in conjunction with the lawyer. The bankruptcy reform act has complicated questions of eligibility for Chapter 7 discharge. A lawyer should also be able to help you figure out how to deal with your arrearages.

  3. #3
    Join Date
    Oct 2005
    Location
    indiana
    Posts
    7

    Default

    Ok,it was just confirmed that I WILL be laid off/let go.
    It is my choice as when to go. I can hold off until the first of the year or go before that. Do you think it would benefit me (since it is inevitable anyways) to take the lay off BEFORE my 341 meeting? And that would give me a better chance of converting to a chap. 7 right away?

  4. #4
    Join Date
    Oct 2005
    Location
    indiana
    Posts
    7

    Default

    I am now laid off. I have no income at this point. Furthermore, a wage order has been placed for my husbands income. I have called my attorney to ask him for help on this matter. He said there is nothing we can do at this point to lower the payments. Is the correct? What they are taking from him is leaving us barely enough money for gas in our vehicles. I have emailed, called, and faxed my attorney trying to get some answers before I go insane, however he has not returned any of my inquiries. I am scared that we will not be able to make. My attorney told me at the 341 meeting that we will not be able to convert to a 7 for at least 3 months, and until that time we need to make the scheduled payments, and on time or our case will be dismissed. Am I missing something here? Can I call my husbands employer and have them stop the wage order? or is that something only the court can do? I am so confused. I thought that by filing bankruptcy it would give us a new start, with the baby coming, however, all I feel is stress and anxiety and it is afecting my pregnancy. Any help would be appreciated.

  5. #5
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default

    This is not a good context for second-guessing the advice you obtain from a lawyer who is intimately familiar with your case. If you wish to obtain a second opinion, I suggest you consult a second bankruptcy lawyer in your state.

  6. #6
    Join Date
    Jul 2006
    Posts
    3

    Default Re: Converting Chapter 13 Bankruptcy to Chapter 7 Bankruptcy

    It sounds like your lawyer is no help. If you're in Michigan, call my bankruptcy lawyer, Richard nahabedian. 248-352-4052. He's awesome! He's the best bankrutcy lawyer I ever met in my entire life and I work in the courts. And as far as your attorney telling you there's nothing you can do to get your payments reduced is not true, which is why I love my attorney, he goes the extra mile, and although he's old, he's far from lazy.

    If you're not from Michigan, still call him to get some advice. I believe your attorney is not helping you the best he can, unless he's just not a wise lawyer.

    1. Sponsored Links
       

Similar Threads

  1. Bankruptcy Issues: Bankruptcy Lawyer Dismissed Case Instead of Converting to Chapter 7
    By pellek40 in forum Bankruptcy Law
    Replies: 2
    Last Post: 08-18-2010, 07:48 AM
  2. Chapter 13: Trustee Dismissing Chapter 13 Bankruptcy, Can We File Chapter 7
    By craigandnay in forum Bankruptcy Law
    Replies: 2
    Last Post: 06-14-2010, 06:23 AM
  3. Chapter 7: Converting Bankruptcy Chapter 13 to Chapter 7
    By acip4u in forum Bankruptcy Law
    Replies: 2
    Last Post: 11-20-2008, 05:05 PM
  4. Bankruptcy Issues: Chapter Seven And Chapter Thirteen Bankruptcy Fees
    By socalfem in forum Bankruptcy Law
    Replies: 5
    Last Post: 03-05-2008, 06:30 AM
  5. Bankruptcy Issues: Choosing Chapter Seven vs. Chapter Thirteen vs. No Bankruptcy
    By meg132 in forum Bankruptcy Law
    Replies: 2
    Last Post: 03-04-2008, 09:44 AM
 
 
Sponsored Links

Legal Help, Information and Resources