Excuse The Double Post.. What Is The Criteria Of Chapter 7 Changeing To Chapter 13

Question:
My laywer never mentioned it until it was time to sign. Then he had me sign paper work acknowledging that he notified me that 'My case could be converted to a chapter 13' .. I assume this has to do with income vs. expenses? Has anyone had experience with this happening (*or not!). I'm in Northern California, make $43,000 with wifes income. Exempted assets of $25,000 and bills of $45,000. My budget puts me just over the 3000 per month we take home but includes items some may feel are luxury like cell phone, health club, lunch out at work. What is the criteria here? Has anyone already done this with these or similiar circumstances? What should I expect if it is converted to a chapter 13? Please comment....I'm hoping that debtors with real experience can tell me what happened in their case. Not advise to ask my lawyer please, I already did that. Perhaps this isn't likely to get such a responce as only 'pre' filers would be reading this NG stuff. oh well.........

Answer:
The question is likely whether you have "excess income," that is, after your regular expenses--those listed on Schedule J--are paid, whether you have enough left over to pay a reasonable amount, usually at least 10%, to your general unsecured creditors. As far as what is involved in a Chapter 13, check out my bankruptcy FAQ at http://users.erols.com/lawyer/faq/br_faq.htm





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