I filed a BK 7 exactly 7 years ago. I got in financial trouble again and now am forced into filing again as I am being sued several times over and just received a garnishment notice
from Cap 1 today. I took the means test
and I pass for BK7, but I'm not eligible because it hasn't been 8 years yet. Would I be able to file a Chapter 13 thru an attorney (to stop all the lawsuits and garnishment) then convert it to BK7 in a year?
One expert answered:
“Yes, you are correct about the eight years but you can file a chapter 13 at any time. However, the court looks at the date any petition
is filed. And if you file now, before the eight years, by trying to convert the court will still look at the date of the chapter 13 filing and deny the conversion. But you could also file a 13, start the plan, pay a little and then have it dismissed. Thereafter, you could file a 7 after the eight year mark. And this way, you can stop the garnishment now!”
My questions: Is this correct? And what are any potential problems with having a BK13 dismissed? Also, how much does the trustee
look at my discretional spending while I'm in BK13? Are vacations etc purchases a problem? And, after having the BK13 dismissed, and filing a BK7 after the 8 years between BK7s are up, will the trustee look at this as a potential red flag? THANK YOU