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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
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Experience:  Bankruptcy professor.
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Question Concerns a Chapter 13 Bankruptcy--Went through a costly

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Question Concerns a Chapter 13 Bankruptcy--Went through a costly divorce and have fairly major ongoing medical concerns @ 53. I attemted to repair creditors through Credit Counseling but was being crushed by the monthly payment. I went to a Lawyer who ended upcommitting me to almost the same monthly payment(about $200 less) over five years due to my income(Almost half of which is going to Alimoney/Maintenance.
BotXXXXX XXXXXne is I have no room for any unexpected expenditures (eg, care repairs on my 10 year old car, health issues, etc..) I have literally no assets and fear I wont be able to keep up the payments to the trustee.
Do I have any options? Can this be converted now to a chapter 7. I sincerely XXXXX XXXXX to own up to my debts(most of which were incurred in the 5 years we were separated as I heavily supported my wife completed nursing school ) but am struggling financially and emotionally over this...
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 7 years ago.
Hi JACustomer,
Basically, a debtor currently in a Chapter 13 plan can convert to a Chapter 7 at anytime during the 5-year period if the current income minus allowable expenses - including alimony - is less than about $100 per month. If one's disposable income has changed from the beginning of the Chapter 13, one can also apply for a modification of the payment amount. Of course, if conversion is possible, converting to a Chapter 7 is generally preferable to a modification of the Chapter 13 plan.

Edited by Christina Fortunato, Esq. on 7/3/2010 at 4:43 PM EST
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