Advice...Convert To Chapter 7

Question:
We are planning on filing for bankruptcy. In our financial state now we would start off in Chapter 13. We know our finances are going to change in the future. We know that I am going to be quitting my job in the next 8-12 months for personal reasons and I'm not planning on going back anytime soon after. That would definitely throw us into Chapter 7 catagory with maybe $100 left after all expenses. 1. How hard is a transition to chapter 7 from 13 in California? 2. Should we retain a lawyer now? We have a feeling that soon we will be garnished or levied through judgement. 3. If we have retained a lawyer can that be shown to a judge for proof that we intend to file BK? and then rush the filing soon after? We are putting off Chap 13 for the time being because we have too much going on right now and so many things we need that we will never have a chance to get after filing chapt 13. Such as paying off 2 of our small credit cards, buying a washer and dryer (which is a necesity in my condition) and saving for the cost of filing BK. Also we will be moving in the next few months to a rental home which will be more expensive. We just don't feel we should file chapter 13 with all this stuff going on and have to re-design our payback plan over and over. We want to wait til its all done with. In the meantime we could be sued, but we feel we should retain a lawyer soon just in case. Is this a good idea? 4. How much does it cost to convert the case to chapter 7? 5. If our vehicles were in the plan would we lose them in the conversion? 6.How soon are the new BK laws going into effect? As a household of 2, maybe children soon with a income of $52,000 net? 7.Will it prevent us from filing? We have explored all the options for debt reduction plans and even started a bankruptcy file in June and trashed it when we thought our lawyer wasn't letting us include important expenses. Thats when we decided to hold off and get our stuff out of the way first. Thanks for any info!

Answer:
> 1. How hard is a transition to chapter 7 from 13 in California? Very simple; you just file a line and pay $15. > 2. Should we retain a lawyer now? Yes. > 3. If we have retained a lawyer can that be shown to a judge > for proof that we intend to file BK? and then rush the filing > soon after? It won't matter if you *intend* to file. It's only the filing that will make any difference in the civil suit. > In the meantime we could be sued, but we feel we should retain > a lawyer soon just in case. Is this a good idea? Retain the lawyer to do what? > 4. How much does it cost to convert the case to chapter 7? Depends. Most lawyers will charge one fee for the 13, and another fee for the converted 7, since you pretty much have to start things over. > 5. If our vehicles were in the plan would we lose them in the conversion? Depends on the details of your case. > 6.How soon are the new BK laws going into effect? Currently, there are no new BR laws, since BARF hasn't been passed yet. > As a household of 2, maybe children soon with a income of $52,000 net? > 7.Will it prevent us from filing? Not in and of itself.





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