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Converting Ch. 13 to Ch. 7

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PBL

Member
What is the name of your state? Louisiana

I am currently in a chapter 13 and will soon convert to chapter 7, is it ok to include another creditor when converting? I think that we are going to be sued for personal injuries (civil case). I don't know the amount as of yet, because we have not gone to court.
Would it be wise to wait until after the court hearing (with a dollar amount) to convert from bk 13 and add figure to bk 7?
Help:confused:

Please I need help with this.

Thank You
:confused:
 
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nailtech

Senior Member
If i'm not mistaken it depends on what your being sued for, some are not dischargable .... like DWI and things like that...
 

PBL

Member
This is for pain & suffering.
I am paying the medical expenses because I was charged with 2nd degree battery and ordered to pay by the courts and now the plantiff is coming back for pain & suffering.
Plantiff filed a civil suit (pain & suffering).
I'm I protected by bk or how can I protect myself with bk?
Any suggestions
:confused: :confused:
 

nailtech

Senior Member
Sec. 523. - Exceptions to discharge

read chapters 4-9 in the link below, copy and paste into a browser minus the part... Sec. 523. - Exceptions to discharge (a) A discharge under section 727, 1141, 1228(a), 1228(b), or 1328(b) of this title does not discharge an individual debtor from any debt - [url]http://www4.law.cornell.edu/uscode/11/523.html

here they are, but you might want to read the whole chapter, it's not that long... and this is Federal not state...

************************************************************
(4) for fraud or defalcation while acting in a fiduciary capacity, embezzlement, or larceny;

(5) to a spouse, former spouse, or child of the debtor, for alimony to, maintenance for, or support of such spouse or child, in connection with a separation agreement, divorce decree or other order of a court of record, determination made in accordance with State or territorial law by a governmental unit, or property settlement agreement, but not to the extent that -
(A) such debt is assigned to another entity, voluntarily, by operation of law, or otherwise (other than debts assigned pursuant to section 408(a)(3) of the Social Security Act, or any such debt which has been assigned to the Federal Government or to a State or any political subdivision of such State); or
(B) such debt includes a liability designated as alimony, maintenance, or support, unless such liability is actually in the nature of alimony, maintenance, or support;

(6) for willful and malicious injury by the debtor to another entity or to the property of another entity;

(7) to the extent such debt is for a fine, penalty, or forfeiture payable to and for the benefit of a governmental unit, and is not compensation for actual pecuniary loss, other than a tax penalty -
(A) relating to a tax of a kind not specified in paragraph (1) of this subsection; or
(B) imposed with respect to a transaction or event that occurred before three years before the date of the filing of the petition;

(8) for an educational benefit overpayment or loan made, insured or guaranteed by a governmental unit, or made under any program funded in whole or in part by a governmental unit or nonprofit institution, or for an obligation to repay funds received as an educational benefit, scholarship or stipend, unless excepting such debt from discharge under this paragraph will impose an undue hardship on the debtor and the debtor's dependents;

(9) for death or personal injury caused by the debtor's operation of a motor vehicle if such operation was unlawful because the debtor was intoxicated from using alcohol, a drug, or another substance;
 

nailtech

Senior Member
Fines, Penalties & Criminal Restitution.

Civil Fines & Penalties. All civil fines and penalties owed to governmental units are not dischargeable in a Chapter 7 case, but can be discharged in a Chapter 13 case.

Criminal Fines & Restitution. All criminal fines and restitution obligations issued in criminal cases can not be discharged in any bankruptcy case (Chapter 7 or 13).

Injury to Persons or Property. Debts related to a debtor's conduct in willfully and maliciously injuring another person or that person’s property are not dischargeable in a Chapter 7 bankruptcy case. This exception prevents the discharge of civil damage awards for assault, rape, murder, arson, vandalism, burglary or theft.

Automatic Non-Discharge. In Chapter 7 cases, most of the non-dischargeable debts discussed above are automatically not discharged by the bankruptcy filing. This means that the entry of a discharge order will not release any debt of the type that are automatically not dischargeable, and the creditor does not need to file a lawsuit or take any other action to preserve the debt. The following types of non-dischargeable debts are automatically excepted from discharge:

non-dischargeable tax claims (see Discharging Tax Claims in Bankruptcy);
debts incurred to pay non-dischargeable taxes (see 2. Debts Incurred to Pay Non-Dischargeable Federal Taxes);
child support (see 4. Alimony & Child Support);
student loans (see 6. Student Loans);
fines, penalties and criminal restitution (see 7. Fines, Penalties & Criminal Restitution); and
unlisted debts (see 8. Unlisted Creditors);

http://www.weberlaw.com/non-dischargeable-debts.htm#7.2 Criminal Fines & Restitution.

I know it states Texas but it is federal as well...
 

PBL

Member
Civil Fines & Penalties. All civil fines and penalties owed to governmental units are not dischargeable in a Chapter 7 case, but can be discharged in a Chapter 13 case.
(Not a governmental unit)

Personal injuries to another individual that had to go to the emergency room for a couple of hours (he is fine) this was a fight that was provoked by the other person. I tried to avoid this fight three times. We have not been to court yet, so I don't have a clue as to how much this is going to cost me and I don't know if I will have to take this any further or not. I am hoping that all of this will get dismissed by the courts, because it would be like trying to get something that I don't have.

So in my case, since I am already in a chapter 13, does this mean that I can add the cost of the civil suit (fine)??? or is it too late??? I was told that nothing can be added to a chapter 13 once you are in it. Is it true??? I have been in chapter 13 for three years now.
If I can't add this, then what are the exemption limits for a civil suit like the one that I have against me. (Do you know)?
I am self-employed with very little income, I have less than 20,000 yearly income. My wife works full time 17,000 yearly. We don't have much, 1 car(98 honda accord)which is included in ch. 13, 2 trucks (valued @ maybe 2,000)not in ch. 13, 78 mobile home on 2 acres of land(included in ch. 13) no savings. So what do you think my chances are of losing what I have to this other individual? I don't want to lose everything that I have.

I have spoken to an attorney, one that is not familiar with bankruptcy laws and he was almost sure that I would be safe, because of the exemptions that the law allows you to have. The only thing that he was worried about was my spouses income being garnished. If so, we would have to do a post nuputial agreement or maybe a pre-nuptial to separated my income from hers. (We are in a state which has community property).



Thank You very much for your reply :) ;)
 

nailtech

Senior Member
http://www.louisianabankruptcylaw.com/index.html

http://www.louisianabankruptcylaw.com/nondischarge.html

If I can't add this, then what are the exemption limits for a civil suit like the one that I have against me. (Do you know)?

No I do not know, did you use a BK attorney for your chapter 13?? you need to go back and ask these questions if so,.... or find one, most give free first consultations.... you really need a BK attorney...

No offence, but you could also divorce and live together, you may have community property state but If i'm not mistaken your not a common law state... ;) but thats a desperate step...
 
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PBL

Member
Thank you very much for your reply.
After my court date I will strongly consider consulting with my attorney about this matter.
I am hoping that all of this will be settled on that day.
Once again, thanks. Your information was very helpful.
 

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