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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2815
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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I filed for chapter 13 back in 07/08 and it has been approved

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I filed for chapter 13 back in 07/08 and it has been approved and I have been current on all payments. I will be losing my job in 12/09 and will receive a severance pkg. My current intention is to return to school full time to obtain an AAS degree and use this money for that purpose. If I refile for a Chapter 7 what will happen with my serverance received?
You may want to consider converting to chapter 7 once that happens. The severance is an asset, that you would need to wait till you spend down, since the cash exemption in IL is just $4000. Once your severance and other personal assets are below that amount, you can file the conversion, as opposed to letting your case get dismissed and refiling. This way, you will only have one bankruptcy on your credit, instead of 2. You may also stay in the 13, and use the severance to pay the plan. If the funds run out ,and you can no longer afford it, then you can convert at that time if you haven't filed chapter 7 before.
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