Posted on: 28th Apr, 2009 03:21 pm
Myself and My husband are currently in a chapter 13 bankructy its making things finacial hard. I guess just dont want to have to stay in bankruptcy 5 years can we do a quick sale on are current resident and then get out of the chapter 13 and convert the rest of our debt to a chapter 7
hi desireeedmonds!
welcome to forums!
you can definitely convert your chapter 13 bankruptcy to chapter 7. but as far as i know, you will not be able to sell the property now as you have already filed chapter 13. you can only sell off the property if your bankruptcy is dismissed. i would suggest you to contact your bankruptcy attorney and get his opinion in this regard.
feel free to ask if you have further queries.
sussane
welcome to forums!
you can definitely convert your chapter 13 bankruptcy to chapter 7. but as far as i know, you will not be able to sell the property now as you have already filed chapter 13. you can only sell off the property if your bankruptcy is dismissed. i would suggest you to contact your bankruptcy attorney and get his opinion in this regard.
feel free to ask if you have further queries.
sussane
you may not be able to sell your house since you are in chapter 13. you can go for chapter 7, since you are not able to make payment on your current commitments.
here is more about 13 and 7:
chapter 13 is known as reorganization bankruptcy, in which you make monthly payments for a three- to five-year period. chapter 7 bankruptcy means all or most of your debts are eliminated without having to pay anything back.
the general understanding was that at the time you wanted to convert from chapter 13 to chapter 7, you based the analysis on your income and expenses at the time of your original chapter 13 filing. meaning, you could not take into account your change in circumstances to re-evaluate your current monthly income versus expenses.
typically, people file chapter 13 for two main reasons, although other reasons exist. one is that the filer wants to save a valuable asset, like a home. he or she is delinquent on the mortgage payments and needs to "reorganize" in order to catch up on those delinquent payments.
the second reason is that the filer has too much income leftover after necessary and reasonable expenses. this additional income prohibits the person from qualifying for chapter 7 bankruptcy. depending on his or her income, the chapter 13 plan period will be from three to five years.
here is more about 13 and 7:
chapter 13 is known as reorganization bankruptcy, in which you make monthly payments for a three- to five-year period. chapter 7 bankruptcy means all or most of your debts are eliminated without having to pay anything back.
the general understanding was that at the time you wanted to convert from chapter 13 to chapter 7, you based the analysis on your income and expenses at the time of your original chapter 13 filing. meaning, you could not take into account your change in circumstances to re-evaluate your current monthly income versus expenses.
typically, people file chapter 13 for two main reasons, although other reasons exist. one is that the filer wants to save a valuable asset, like a home. he or she is delinquent on the mortgage payments and needs to "reorganize" in order to catch up on those delinquent payments.
the second reason is that the filer has too much income leftover after necessary and reasonable expenses. this additional income prohibits the person from qualifying for chapter 7 bankruptcy. depending on his or her income, the chapter 13 plan period will be from three to five years.