Chp 7 To Chp 13
i had my 341 meeting on feb 20 th. now i get a letter from the court about changing chp 7 to chp 13. they are asking questions about my 250.00 a month support to my parents. 75.00 for a small 401k. also 40.00 to charity. am i looking at another meeting? if so what can i expect. do they ask for bank statements and start looking for every penny? i called my attorney and have a meeting with her monday.
Answer:
Sounds as if the Trustee feels that you have the ability to repay some of your debts in a Chapter 13 Plan. Your attorney will be able to tell you how likely it is that the Trustee could succeed in a contested hearing on this issue. From what I've read from others, The $250/mo for support of the parents is not usually considered legitimate expense The continued $75 deposits to a 401(k) is not usually considered legitimate expense during bankruptcy The $40 to charity is usually considered a legitimate expense. However, each BK court is different in what is considered legitimate and what is not. wher I live, having $200+ extra a month will put you in a chapter 13 instead of a 7. In other courts they look at the amount attempting to be discharged and what extra you have and if you can make a certain % of the payments back with what you have left over, then the chpt 7 is dismissed and you are given the opportunity to file chpt 13. I don't think you are ever forced into a 13. good luck to ya.
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