What if I filed for chapter 13 and lost my job? - Bankruptcy Law Questions and Answers- LawQA.com

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What if I filed for chapter 13 and lost my job?

Am I able to file Chapter 7? Do the numbers need to show my current income? Do I need to pay another filing fee? My wife also had a cut in pay. We have a rental home in foreclosure. Our primary residence is current on the mortgages. Not sure what to do.

Melinda Murphy Dionne, PC
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The first step you should take is to make an appointment with your lawyer to discuss these matters, assuming you are represented. If you filed the case yourself, you can convert a Chapter 13 to Chapter 7. There is a $25 conversion fee that must be paid upon conversion to Chapter 7. You must show your current income and any debts incurred since your original case was filed. You need to make a realistic assessment of your ability to pay your debts. If you can no longer afford the rental house it needs to be surrendered in the Chapter 7 case. The same goes for your primary residence. You can only file Chapter 7 once every 8 years. If you convert, that is the time to wipe the slate clean and get a fresh financial start.

Answer Applies to: Alabama
Replied: 8/4/2011

Answer By Janet Lawson
Janet A. Lawson Bankruptcy Attorney
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Based on a change in circumstances you can convert to chapter 7.

Answer Applies to: California
Replied: 7/14/2011

Law Office of Lynnmarie A. Johnson
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You can convert to Chapter 7 for a relatively small fee assuming that your lower income qualifies.

Answer Applies to: Michigan
Replied: 7/13/2011

Bankruptcy Law office of Bill Rubendall
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If you have lost your job during your chapter 13 you may want to file a modification. If you decide that is unfeasible you may want to convert to chapter 7. There is a conversion fee, approximately $25. You will have to update your income and expense in schedules I and J. Also any other changes must be updated. You should consider whether to keep your rental property if you can't afford it. Keep your residence current. All in all, you should retain a bankruptcy attorney to do this.

Answer Applies to: California
Replied: 7/13/2011

Answer By Jared B. Gaynor
The Law Offices of Alan M. Laskin
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You should speak to your attorney, but in general there is no need to refile. You can petition the court to convert the case to Chapter 7.

Answer Applies to: California
Replied: 7/13/2011

Answer By Gary Lee Lane
CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE).
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Yes, you can change a chapter 13 into a chapter 17 under those circumstances.

Answer Applies to: California
Replied: 7/13/2011

The Northwest Debt Relief Law Firm
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You should meet with your attorney to determine whether you are eligible for conversion to Chapter 7. Given the right set of facts, you may be able to do so. The filing fee itself is just the difference between the 7 and 13 fees so you will just pay $25.00 to the court.

Answer Applies to: Oregon
Replied: 7/13/2011

Answer By Mark Alonso
Financial Relief Law Center
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If you filed for a chapter 13 but then later lost your job, it is going to be difficult to continue to say in the 13 plan w/o having income to make the payments. You may be able to convert you ch. 13 to a ch. 7 once you are able to qualify under the income requirements of the ch. 7, so it is going to depend upon your average income for both you and your wife over the last 6 months to see if it falls within the qualifications. If your rental property is in foreclosure, you are likely to end up losing that, unless you can reach a negotiation with your lender. Your primary residence that you are current on will most likely not be something you would lose in the ch. 7, since you're current, and my guess is you probably don't have any equity, but you would need to make sure that this is the case and that if there is any equity in the property, that it would fall under one of the exemptions. I would recommend contacting an attorney, as converting your 13 to a 7 will probably require some strategizing.

Answer Applies to: California
Replied: 7/13/2011

Answer By Eric Benzer
Eric J. Benzer, Attorney at Law
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Yes.

Answer Applies to: Maryland
Replied: 7/13/2011

Mercado & Hartung, PLLC
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Notify your BK Attorney and Trustee, they will make the proper amendments

Answer Applies to: Washington
Replied: 7/13/2011

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