Converting a chapter 13 bankruptcy to a chapter 7?

Question

Ok so heres the thing. My wife and I filed a chapter 13 bankruptcy back in may. Included in it were our mobile home, our car, and some bedroom furniture. That was only thing that was secured debt that we kept. Well since then the car is falling apart, so we're going to have to get another car anyway, and we're doing owner financing for another mobile home and land package for the same price were paying now for the trailer and lot rent. So we'd come out better by getting rid of the bankruptcy altogether however we still had a lot of unsecured debt on there that I'm really not into to getting harassed about, so the other option would be to convert the case to a chapter 7. We're going to have bought the house by the time we could do this(early next month). My questions are these. If we converted to a chapter 7 they wouldn't seize the property we just bought would they?, and I know I wasn't supposed to be "obtaining credit" under the current chapter 13 plan, which I don't care because we're either just going to let it get dismissed for non payment or convert it, but even if they find out I obtained credit after the fact would they try to seize the property, and if so what could be done in that situation? and lastly if we just let the case get dismissed would I still have to pay the lawyer fees and if we converted could they be included in the chapter 7?

Answer 1

The previous answers are correct....you are playing a dangerous game here with the trustee.  

Yes, you are still liable for the attorney fees on your previous Chapter 13.  Also the other court costs and trustee fees that were rolled into your plan.

You did not do a "naughty" by getting new credit...you violated a court order.  When your plan was approved you agreed not to get new credit.  So you will have to deal with this issue.  You can change the name and sugar coat it all you want...but the trustee will find out.

If you did not qualify for Chapter 7 before, what has happened that will qualify you now?  

I'm not a lawyer but I've done a lot of research on bankruptcy trying to help people out.  I don't think you will win this one.

Answer 2

Be really careful. I have some experience in this area. The banlruptcy trustee has many powers to  recover any money. How could you borrow now? No one would give you credit. There are strict rules. If you break them the result could be jail time. Not worth it.

Answer 3

First off, anything you purchase while in a chapter 13 bankruptcy has to be approved by the trustee of the courts. Second, From what you have told us, you are doing an owner financing, so you are working it up like a rent to own agreement with the seller, no credit check, even so, I would be very careful with fooling with a bankruptcy already in progress and consult with the attorney handling your case. If the case is dismissed, all the debts come back on your plus interest accrued...you are no longer protected under the bk laws from collections. The converting to a chapter 7 has to be converted if there is a loss of income, and you now pass the means test based on income. The creditors in your chapter 13 will come after you, sue you, get judgements and yes, attach liens, which don't necessarily mean on a rented home, but can attach bank accounts to the max, I believe 100%....Sounds to me you are playing with fire and need to get with your bankruptcy attorney to find out what you can do legally. Any money you have retained with an attorney...you lose. Good Luck!!