Can Someone Convert A Chapter 13 To A Chapter 7 Bankruptcy?
July 22, 2020
Filing a Chapter 13 is a voluntary decision. There are various reasons you might want to convert if it is not working, or you have a car that you are trying to save, which is a piece of junk now, or the housing situation is just not working out. You have a real estate tab, electric, and gas bills as well that you are behind on. That might be a good reason. In some instances, they have incurred new debt. I told you that the intermediate income for one person is $50,000, which is not a lot of money. There are tremendous amounts of deductions, IRS deductions, tax deductions to healthcare, charitable contributions, amortizing secure debts, and other things that are possible.
Then there are people who go for conversion that just had a serious reduction in their income, because they are unemployed, demoted, or whatever.
WHAT ARE THE 2, 4, 6 & 8 RULES IN BANKRUPTCY LAW?
That is the eligibility to file. This is strictly on years, and there are other factors, of course. If you have never filed a Chapter 7, you can file a Chapter 7. If you filed a Chapter 7 more than eight years ago, you are eligible to file a new Chapter 7. If you filed a Chapter 7 within eight years, you cannot file a Chapter 7. You are going to have to file a Chapter 13. If you filed a Chapter 13 within six years from the date of filing, and not from the date of discharge, you can file a Chapter 7. If you filed a Chapter 13 almost any time, and you paid one-hundred percent, or at least seventy percent of the debt, you are probably eligible to file a Chapter 7 again.
Then there is a silly one, almost irrelevant between two Chapter 13s, but I do not ever recall having that situation. If you file a Chapter 13, and complete it within one year, but you do not pay very much to your creditors, then you cannot file a Chapter 13 for two years. It is irrelevant.
HOW CAN FILING FOR BANKRUPTCY IMPROVE SOMEONE’S OVERALL HEALTH AND WELLBEING?
After the first meeting of creditors, people just seem to be happier. They understand what is going on, and they have not seen many adverse effects. Then we see people who have filed a Chapter 7, or a Chapter 13, they call us years later, and want to know if we can represent them in buying a house.
WHAT ARE THE POSITIVE OUTCOMES ASSOCIATED WITH SUCCESSFULLY COMPLETING A BANKRUPTCY?
You have more money in your pocket after a successful filing. You live better. You can eat better. Many people skimp on food for themselves, or their children, they skimp on clothing, or medicine, which is very common. Although it has nothing to do with bankruptcy, it was many years ago from a former spouse of mine, she had an aunt who did not have much money, and lived in a mobile home. Every month she had to determine if she was going to pay her rent, buy food, or medicine.
WHAT ARE SOME OF THE BEST WAYS TO BEGIN TO REBUILD MY CREDIT AFTER A BANKRUPTCY?
Get a secured credit card and pay it off every month to rebuild your credit after a bankruptcy. Look for some areas where you can get credit, buy a modest car with modest payments, and pay it off rapidly. Those are two good ways of doing this. Try to put a little money in the bank every month for yourself. Pay yourself on a regular basis even if it is a small amount of money. Try to take some money out of every payday to pay yourself.
HOW SOON DO TYPICALLY PEOPLE RECEIVE CREDIT CARD OFFERS AFTER FILING FOR BANKRUPTCY?
Almost upon the immediate filing of a bankruptcy, they get credit card offers. It is because the credit card companies realize that these people are now debt free and they cannot file bankruptcy for a period.
HELPFUL TIPS FOR PEOPLE GETTING THEIR FIRST CREDIT CARD AFTER A BANKRUPTCY
Be careful, I guess. You get a secured credit card; you get your credit reports, and make sure it is accurate. Try to get a car, or two credit cards, and never use a payday loan for a car title. I think it is a little bit easier to get store credit. It is easier to get a credit card from Macy’s, or Sears than Bank of America, I would think. The main thing is when you do get any credit; you pay it off as soon as possible.
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