Q: If I apply for a CH 7, but the court says I'd lose my house, can I quit the Ch7 and do a Ch13?
Or wd I be locked into a Ch 7 once applied for this route? Bigger question: once I file for Ch7, can I quit any time or am I obliged to continue w/ it?
ANother question implied here: If I apply for a ch 7 and find I 'd lose the house in a sale, can I negotiate with the ch 7 trustee to give some acceptable amount of money to the trustree for the creditors w/o losing the house or going on to do a ch13?
You generally may convert to a chapter 13 while in a chapter 7. There are time limits and other limitations which should be discussed with a competent bankruptcy lawyer to answer that question in your specific factual circumstances.
Once you file a chapter 7 you may not dismiss. There are exceptions to this, but you can't just change your mind and dismiss the 7.
You can always negotiate with the chapter 7 trustee. However, you will need a " rich aunt matilda" to finance these things, and most people do not.
All of these issues should be discussed in detail with a good and competent bankruptcy attorney.
The question implies that there is more equity in the house than the law allows as an exemption.
If you file a Chapter 7, the Trustee who is appointed has a say in whether you can take a voluntary dismissal.
The Chapter 7 Trustees are always willing to negotiate "selling" the non-exempt assets back to the debtor.
Often, they will also work out a payment plan.
However, if the non-exempt asset far exceeds the exemption, sale and liquidation may be the only alternative.
Chapter 13 may be an option.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.