My wife and I filed Chapter 13 some years ago and our only asset is our house which was delinquent.
We are separated now and I will be filling divorce soon, she missed a payment to the trustee so they started to look over the case again.
The law firm that handled our case said that in their review our delinquent payment back on the house is paid off now and are recommending to go to a chapter 7 conversion for their fee.
Said once they are paid and the case will be closed and we no longer have to submit payments to BK court or release our taxes to the BK court.
He stated the case would be discharged/completed and we could start new credit again and the credit card companies would not be able collect on me.
Otherwise they raise our chapter 13 payments for the missed payment and we have two more years left under the term of payments.
Does this sound reasonable? The law firm said there no disadvantages to the conversion of our ch 13 to ch 7.
We are separated now and I will be filling divorce soon, she missed a payment to the trustee so they started to look over the case again.
The law firm that handled our case said that in their review our delinquent payment back on the house is paid off now and are recommending to go to a chapter 7 conversion for their fee.
Said once they are paid and the case will be closed and we no longer have to submit payments to BK court or release our taxes to the BK court.
He stated the case would be discharged/completed and we could start new credit again and the credit card companies would not be able collect on me.
Otherwise they raise our chapter 13 payments for the missed payment and we have two more years left under the term of payments.
Does this sound reasonable? The law firm said there no disadvantages to the conversion of our ch 13 to ch 7.