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?
A:
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.
A:
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.
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