I have a relative who filed ch. 13 2 years ago. She has auto debit from paycheck. She is 5 months behind on mtg. will be caught up to current next month. mtg is not included in ch. 13. she really needs to convert the ch.13 to a ch.7, how easy is this? Does anyone know where I could get some info.? She doesn't want to ask the lawyer until her mtg. is current. I want to find this info. out myself because I'm sick of borrowing her money. If she went from ch. 13 to ch.7 she would have an extra $500/month and she would be able to pay her mtg without any trouble.
Well, it's pretty rountine. In fact, the vast majority of chapter 13's are either dismissed or converted to a 7. SHe just needs to quit making her payments and the trustee will dismiss the 13 for her after a few months. I don't understand why she doesn't wish to discuss the problem with her lawyer? THe lawyer is working for her. He/she stands to collect new fees on the chapter 7 filing.
She cannot stop the payments for the ch. 13 because it automatically comes out of her paychecks. I think if she goes in there with the mtg current and the ch. 13 current they will say you are managing with the payments so what's the problem? why do you want to file ch. 7? What do you think?
I think it depends on what it is taking to get and stay current. If she is having to borrow money to stay in the plan then, the plan is not realistic and she and her lawyer need to either convert to a 7 or, petition the trustee to adjust the plan. The purpose of a 13 is to allow you to keep assets and payoff unsecured debt in an orderly manner consistent with your means. Having to borrow money means the plan is unrealistic or, the petitioners circumstances have changed to make the current plan unworkable.
Thanks, Keepmine. It's very unrealistic when you have to pay $500/mo for ch. 13 bk + mtg $850 (which doesn't include tax & ins) + utilities and food. Hopefully, we can get her into a ch. 7, at least they got some of the money. And, if the trustee gives her a hard, I will start a letter writing campaign. Hey, I've cleaned up my credit from upper 500s to 700s - I feel like I am invincible.
