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TJ, Esq.
TJ, Esq., Attorney
Category: Bankruptcy Law
Satisfied Customers: 12403
Experience:  JD, MBA
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I filed Chapter 13 almost 3 years ago now and still paying

Customer Question

I filed Chapter 13 almost 3 years ago now and still paying the trustee a month. My question is, can I change it from 13 to 7? I'm having a financial hardship and I can't afford to pay the trustee anymore.
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  TJ, Esq. replied 6 years ago.
Hello and thank you for allowing me the opportunity to assist you.

Please note that for legal reasons my answers are only intended to be general/educational information rather than specific legal advice. If you need specific legal advice, then you must consult with a local attorney in your jurisdiction.

If your circumstances have changed and you cannot afford to make the payment for the plan, then you may be able to convert your Chapter 13 into a Chapter 7. It is quite common in various situations, such as a job loss or other circumstances that make it impossible to complete the Chapter 13 plan. You should talk to your bankruptcy attorney about your changed circumstances so that he can submit a motion to convert the bankruptcy.

Have I satisfactorily addressed your concerns? If not, then feel free to let me know, as I will be happy to clarify my answer or help with your follow-up questions. In the meantime, please remember to click the green accept button so that I will receive credit and compensation for my time (doing so does not end our discussion). Positive feedback is always appreciated as well. Thank you and good luck!
Customer: replied 6 years ago.

Thanks for responding right away. I have a car that I did not surrender when I filed the 13 and part of my payments goes there. So when I file for 7, am I going to loose the car or I could still keep them and make payments?

Customer: replied 6 years ago.

Thanks for responding right away. I have a car that I did not surrender when I filed the 13 and part of my payments goes there. So when I file for 7, am I going to loose the car or I could still keep them and make payments?

Expert:  TJ, Esq. replied 6 years ago.
Hi again.

Generally speaking, a debtor can keep his car so long as the equity can be exempted and the debtor reaffirms the debt with the lender. According to THIS WEBSITE, the California exemption for motor vehicles is up to $2775. So, a debtor with $2775 of equity in his car (or less) should be able to exempt it and reaffirm the debt in order to keep the car.

I hope that helps. Please remember to click "accept."