Personal Bankruptcy 18 mo. into Chap. 13 - Change to Chap. 7?

[Cathy34]

18 months ago we filed Chapter 13. We've paid our Trustee on time every month. We still own our house and have never been late on a payment. Our lawyer told us how to "repair" our credit but we haven't had the solvency of finances to do so. Now today, he told us that we should petition the courts to file Chapter 7. We've recently had a baby which is why he said we'd be able to do this. We've signed the papers, but haven't done any of the required paperwork yet.

Can you tell me the pros and/or cons to changing to Chapter 7? We are hoping to sell our house in a couple of years and eventually get enough credit to buy another house! Our cars are 1991 and 1996 so I'm sure we'll eventually need a new vehicle. I was so confused by the time I left the lawyer's office that I'm not sure what he was telling us.

Any advice?

Thanks.

 

[Michael Wechsler]

Honestly, you are best served in speaking to your lawyer who knows the situation completely. Why not ask him?

I'm amazed that you have taken on so much responsibility during a Chapter 13 filing, own two cars and have a new baby and hope to get credit in just a few years to buy another house. Has your attorney addressed any of this and realistic expectations? Perhaps they are, I really don't know and see that there are many aspects of your case we don't know.

18 months ago we filed Chapter 13. We've paid our Trustee on time every month. We still own our house and have never been late on a payment. Our lawyer told us how to "repair" our credit but we haven't had the solvency of finances to do so. Now today, he told us that we should petition the courts to file Chapter 7. We've recently had a baby which is why he said we'd be able to do this. We've signed the papers, but haven't done any of the required paperwork yet.

Can you tell me the pros and/or cons to changing to Chapter 7? We are hoping to sell our house in a couple of years and eventually get enough credit to buy another house! Our cars are 1991 and 1996 so I'm sure we'll eventually need a new vehicle. I was so confused by the time I left the lawyer's office that I'm not sure what he was telling us.

Any advice?

Thanks.