I filed Chapter 13 Before the Law Changed, What If I Convert to Chapter 7 Now?
By Kurt O'Keefe, Attorney at Law on Jul 3, 2007 in Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, General Bankruptcy Information
The wonderful new bankruptcy law became effective October 17, 2005.
If you were already in a Chapter 13, that is, filed before that date, your case is still governed by the old law. The good news is, if you convert that Chapter 13 to Chapter 7, your case is still controlled by the old law. So, no means test, no credit counseling, none of the other burdens imposed by the current law.
You are bound by the change in the law that increased from six years to eight years the required time between filing Chapter 7. So, if you filed a Chapter 7 within the last eight years, you cannot convert your 13 to a 7 now.
Everyone has to file a budget of monthly income and living expenses as part of any bankruptcy case. Everyone’s income and living expenses change, e.g, the rising price of gasoline. If you are considering converting a Chapter 13 case, or withdrawing, first, always update your budget, and get that information to your attorney. The starting point, for me, of any bankruptcy analysis is your income and living expenses.
Most of my clients want to pay their debts, so the first question is, do you have the money to pay some or all of your debt? What can you actually do?
You should have copies of the budget information, Schedules I and J, that you filed as part of your case. If you do not, contact your attorney and request a copy. That should be your starting point. Then get your pay stubs and checking account and other payment records. You should send copies of the pay stubs to your attorney.
Crunch the numbers together, as you did before you filed your case. The process is complete when you have the real picture of what money is coming in and what is going out of your household.
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