“Dear Steve,
My wife and I filed Chapter 13 in Sept. of 2010. We decided to only have my check garnished, since I make the most money in the household. We were struggling to get by with most of my check being garnished. But then, in December of 2011, things got real bad. My wife lost her job and has been unable to find new employment in the current job market. We made an appointment with our attorney to try to get our Chapter 13 payments lowered and he suggested that we convert to Chapter 7, since our loss of income would now make us qualify. We agreed and are in the middle of our conversion now.
My direct question is, since we paid $1500 up front for the Chapter 13 (with another $1500 to come from our monthly payments, throughout the course of the Chapter 13), what is a reasonable (additional) fee to pay my attorney for the conversion (considering that we are 20 months into our Chapter 13? He is asking for another $750, and this seems high to us. Please tell us your thoughts
Thanks
Cody”
Dear Cody,
That certainly sounds reasonable to me. It’s most likely much cheaper than you’d probably be quoted if you shopped around for another attorney to handle the conversion for you. At least your attorney has some history with the case and knows you already.
It’s also a substantial reduction off the typical charge of filing a chapter 7 bankruptcy. Your attorney is doing work on your behalf and it’s not as easy as sending in an email. The conversion, if successfully submitted and accepted by the court will save you a tremendous amount of money and discharge your debt quickly.
So in my book the benefits are all on the upside and getting this completed correctly and swiftly seems reasonable to me.
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Thanks for the reply Steve. How does the conversion affect our credit score? I mean, we are trying to get back on track, will this “reset the clock” so to speak on our credit or does the beginning of our bankruptcy start when we first filed the Chapter 13? I guess the question is, how much of a hit is our credit going to take due to the conversion, and how long should we expect to live under the black cloud of bankruptcy?
The chapter 7 bankruptcy will discharge unsecured debt in three months or less. It will remain on your credit report for 10 years. You can begin to rebuild your credit quickly and stronger than before. Follow my free guide. https://getoutofdebt.org//32410/how-to-easily-rebuild-your-credit-and-have-good-credit-again