Ask Me Help Desk - Bankruptcy 13 then 7

If you have filed a chapter 13 a year ago and can no longer make the payments with out being late on your house and power bill can you convert it to a 7?
MoonDust

If you filed a chapter 13 and can not make the payments, you have either added bills to your debt or you did not file it properly. Sinnce it is set by you to have money to pay all your required bills.

So what has changed ? If you have lower income you can go and ask for a revision of payment plans.

So are you making less money or have you gotten further in debt ?

And depending on the actual terms of filing, why did you do a 13 originally, are you protecting a home, or other items that you could lose in a chapter 7.

But normally yes you can covert it to a 7 but... if you went out and got in a lot more debt after you got into the 13, if you got debts like credit cards, or a car loan without permsision of the court, it is possible that you may not be allowed to if one of the creditors finds this and files a objection

Quote:

Originally Posted by Fr_Chuck

If you filed a chapter 13 and can not make the payments, you have either added bills to your debt or you did not file it properly. Sinnce it is set by you to have money to pay all your required bills.

So what has changed ? if you have lower income you can go and ask for a revision of payment plans.

So are you making less money or have you gotten further in debt ?

And depending on the actual terms of filing, why did you do a 13 orginally, are you protecting a home, or other items that you could lose in a chapter 7.

But normally yes you can covert it to a 7 but .... if you went out and got in alot more debt after you got into the 13, if you got debts like credit cards, or a car loan without permsision of the court, it is possible that you may not be allowed to if one of the creditors finds this and files a objection

I am making less money. I have not acquired any more debt. My plan was very tight in the beginning now that I am making less money I have to be late on my house to pay the payment. I was trying to protect my home yes. But the value of it has dropped 30% or better. I had $20,000 equity after the $10,000 I was allowed now with the reduction in equity I believe I could qualify for a 7.
Thank You Chuck for your input to my question.
MoonDust