What does it take to go from Chapter 13 to Chapter 7??

[Thumbelina58]

What is the name of your state (only U.S. law)? INDIANA

We hired an attorney last July to handle a bankruptcy for us. We assumed it would be a Chapter 7 because we were overwhelmed with debt (mostly medical) and we wanted a clean start. However, our attorney filed a Chapter 13, and my husbands' check is being garnished for $150.00/week ($600.00/month) Now our past due bills are being paid but we can't pay our CURRENT bills. I've heard about switching from one chapter to another. Can someone tell about that and what it takes to qualify to switch?

THANX,
Janet


ps.... we kept our home, and our car.....

 

[Proserpina]

What is the name of your state (only U.S. law)? INDIANA

We hired an attorney last July to handle a bankruptcy for us. We assumed it would be a Chapter 7 because we were overwhelmed with debt (mostly medical) and we wanted a clean start. However, our attorney filed a Chapter 13, and my husbands' check is being garnished for $150.00/week ($600.00/month) Now our past due bills are being paid but we can't pay our CURRENT bills. I've heard about switching from one chapter to another. Can someone tell about that and what it takes to qualify to switch?

THANX,
Janet


ps.... we kept our home, and our car.....

You can start here with NOLO's basic outline: http://www.nolo.com/legal-encyclopedia/converting-your-bankruptcy-case-from-chapter-13-chapter-7.html

There is also an incredibly helpful forum over at www.bkforum.com, and they really do know their stuff - they also have several attorneys on board.

 

[bigun]

Why did your lawyer file a Chapter 13 as opposed to a 7?

 

[Thumbelina58]

Why did your lawyer file a Chapter 13 as opposed to a 7?

We don't know, but our situation has since grown worse..... our home caught fire last November, and we had no insurance. We let it lapse 3 months earlier because we couldn't afford the premium. My husband depleted his 401K to come up with enough money to get our home livable again. We're hoping to move back in Jan. 1st..... In 6 more months, they will begin taking more money from his paycheck to reimburse the 401K account. My husband works 6 days a week, 8 hours overtime, and currently brings home 480.00 a week. We receive "statements" every few months and they show that we are paying this lawyer $187.00 a month for his "services". The last time we called him, he told us he would need to petition the court for more money because of "all of the time he was spending on our case". Someone point us, please, in the right direction. Bankruptcy is supposed to help you, not make things worse.

 

[quincy]

We don't know, but our situation has since grown worse..... our home caught fire last November, and we had no insurance. We let it lapse 3 months earlier because we couldn't afford the premium. My husband depleted his 401K to come up with enough money to get our home livable again. We're hoping to move back in Jan. 1st..... In 6 more months, they will begin taking more money from his paycheck to reimburse the 401K account. My husband works 6 days a week, 8 hours overtime, and currently brings home 480.00 a week. We receive "statements" every few months and they show that we are paying this lawyer $187.00 a month for his "services". The last time we called him, he told us he would need to petition the court for more money because of "all of the time he was spending on our case". Someone point us, please, in the right direction. Bankruptcy is supposed to help you, not make things worse.

Perhaps it is time to consult with a different attorney.

 

[Thumbelina58]

Perhaps it is time to consult with a different attorney.

Can we "fire" our current lawyer? What about the trustee??

 

[FlyingRon]

Can we "fire" our current lawyer? What about the trustee??

With difficulty, you can get rid of the lawyer.
It would be extremely difficult to get rid of the trustee. Understand that the trustee doesn't represent you, he represents the creditors.

 

[Thumbelina58]

converting from Chapter 13 to Chapter 7

What is the name of your state (only U.S. law)? INDIANA

We hired an attorney last July to handle a bankruptcy for us. We assumed it would be a Chapter 7 because we were overwhelmed with debt (mostly medical) and we wanted a clean start. However, our attorney filed a Chapter 13, and my husbands' check is being garnished for $150.00/week ($600.00/month) Now our past due bills are being paid but we can't pay our CURRENT bills. I've heard about switching from one chapter to another. Can someone tell about that and what it takes to qualify to switch?

THANX,
Janet


ps.... we kept our home, and our car.....

If we do convert to a Chapter 7, do we have to give up our home?

 

[LdiJ]

If we do convert to a Chapter 7, do we have to give up our home?

It depends on how much equity you have in your home and your car.

Here is a pretty comprehensive list of the assets exemptions for Indiana:

http://www.indianabankruptcy.com/exemptions.html