Switching from a Chapter 13 to a Chapter 7
Originially filed for a chapter 13 two years ago, husband lost job in May 04. We were originally behind on mortgage and vehicles, have been paying trustee up until the time that husband lost his job. Fell behind on Mortgage during that time now mortgage company wants us to repay them within a 6 month period. Can we file for chapter 7 and keep any of our secured assets? Also, if I am working for a creditor that is on the plan (filed Chapter 13 before I became employed with them) am I at risk of losing my job if I file a chapter 7? We are willing to give up home and one vehicle, however, cannot risk losing job because I am main provider in family. Also, if we file a 7, can we still rent or lease a home? If so, can someone direct me to the appropriate agency/person that can help me?
1 Answer from Attorneys
Re: Switching from a Chapter 13 to a Chapter 7
You can keep property in a Chapter 7 case. However, you will have to catch up on the payments pretty quickly (around 2 to 3 months). Also there is a provision in the U.S. Bankruptcy Code which prohibits a company from firing someone because they filed bankruptcy. The problem that I see is it could be difficult to prove that your employer fired you because of the Chapter 7 filing. You have several fairly complicated issues in what you have described. I would be happy to speak to you in more detail. Please feel free to call me at (972) 231-5500.
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