Chapter 13 can it be converted to Ch 7

[bobsalas]

What is the name of your state? OR

I am 3 months into Ch 13 and boy is it tough. We tried to go Ch 7 but the trustee found we had $300 left over after expenses and took it along with about $5000 in tax refunds. No problem, but very tough.
My wife is collecting unemployment and it is scheduled to end in a few months and our mortgage is goin to go up about $300-$400 at about that same time. Damn ARM.

So my question is: can we convert to a Ch 7 at that time? Does it make sense - as oppossed to starving and living in the streets.

 

[Ladynred]

If your income is going to change drastically, and your expenses too, then yes, you might be able to convert to a Ch 7 after all that happens. If it lowers your disposable income you might not have a problem. The alternative is to modify your Ch 13 plan to reflect the lower income and higher expenses.

 

[GaAtty]

You should have a bankruptcy attorney before you do this. Not only is it a little complicated to do yourself, the problem is that if you convert to a Ch. 7, you will lose your house unless you have very little equity in it.