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Should We Convert Our Chapter 13 Bankruptcy to a Chapter 7? – Timothy

“Dear Steve,

My wife and I filed Chapter 13 bankruptcy a little over a year ago. Our payment started out around 750.00 a month. The trustee would not go along with the plan, he wanted more money, so now we are up to over 900.00 a month. My wife became disabled in June of this year which dropped out income $1200.00 a month and they say they can only drop our payment down to 700.00 something a month. The only thing we can think of is to file Chapter 7, but we do not want to lose out home, a 1974 mobile home and 1/2 acre of land and a 2004 Ford F150. We already gave back a 2006 Yamaha Motorcycke and a 2007 Kawasaki 4 wheeler, along with a 2008 Chrysler PT cruiser and a camper trailer. We are at our wit’s end. We have more and more medical bills piling up and cannot see the light at the end of the tunnel. I make about 2000.00 a month in my job and my wife has filed for disability.

What would be our best solution? If we file chapter 7 can we keep our home and 1 vehicle we have? Whay do we do to start over free and clear?

Timothy”

Dear Timothy,

The best solution would be to talk to your bankruptcy attorney to see if converting your case is possible. If you can convert your case to a Chapter 7 it seems like a reasonable approach especially based on the change in your lives with the disability.

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

Sincerly,
Steve

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

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Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

4 Comments

  • I’m not sure about claiming the $3K but if your attorney is not returning your calls and helping you, that’s really bad customer service and you need to look elsewhere for help.

  • Steve,
    Since I sent this in to you, we called our attorney, who was being hard to get ahold of. I got a “little bit” rowdy with them and advised them something HAD to give. I re-explained our money coming in, and our money going out, and the going out was more than the coming in. And this was absolutely just the have to haves, minus cell phone, and satellite. We are thinking of actually dropping satellite and using internet over our tv to stream movies. It’s free. Thank you for your comment and advice. They said they were going to try and get our chapter 13 payment down to around $740.00 a month, and I was like, whatever. I have a new attorney appointment this week. I think after trying to get a hold of these people for over 3 weeks to no avail, means they don’t care nor want my case. So maybe when I file Chapter 7 I can claim their $3000.00 Chapter 13 money in it also! 🙂

  • Steve,
    Since I sent this in to you, we called our attorney, who was being hard to get ahold of. I got a “little bit” rowdy with them and advised them something HAD to give. I re-explained our money coming in, and our money going out, and the going out was more than the coming in. And this was absolutely just the have to haves, minus cell phone, and satellite. We are thinking of actually dropping satellite and using internet over our tv to stream movies. It’s free. Thank you for your comment and advice. They said they were going to try and get our chapter 13 payment down to around $740.00 a month, and I was like, whatever. I have a new attorney appointment this week. I think after trying to get a hold of these people for over 3 weeks to no avail, means they don’t care nor want my case. So maybe when I file Chapter 7 I can claim their $3000.00 Chapter 13 money in it also! 🙂

    • I’m not sure about claiming the $3K but if your attorney is not returning your calls and helping you, that’s really bad customer service and you need to look elsewhere for help.

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