Legal Question in Bankruptcy in California

Re: Conversion to 13 or challenge FMV

Examine the value. It also depends what the figures are and who the Trustee is and who the Judge is. With some you can work out a deal, others you have to convert to 13. GET AN ATTORNEY INVOLVED IMMEDIATELY, because the longer you take the more costs the Trustee will incur and you will be forced to pay.

You are welcome also to call my office 310-205-3400.

Re: Conversion to 13 or challenge FMV

Yes, you can convert to ch. 13 (assuming you are otherwise eligible), or you can offer to settle with the Trustee for whatever amount the Trustee believes he can bring in net from the sale.

Re: Conversion to 13 or challenge FMV

If you have excess income the court should have converted you to Ch. 13 already. Assuming you are elegible for a 13. You can do it anytime before the Chapter 7 Trustee sells the home and certainly before the Chapter 7 case is dismissed. You may of course offer to buy the home from the Chapter 7 Trustee. Since you only need to pay him/her the net they'll recover from the sale you can probably get by doing this cheaply. You may also find the Chapter 7 Trustee was only trying to impress you. Take a long look at the market and the costs of sale. Your entitlement to the homestead exemption that you'll be paid as a result of the sale. And talk to whomever is handling your petition in the Chapter 7 Trustee's Office, and see if you can't convince them of the foolishness of the sale by showing them the net realized would not profit the creditors. I think from what little you've told me. That the Trustee was bluffing, and trying to scare you into converting. So don't panic.

Re: Conversion to 13 or challenge FMV

Go over your exemptions, and make sure you've maximized your exemptions. Also consider canceling you Chapter 7. Credit card companies rarely sue to recover their money if you default. I've formed the opinion that it is foolish to file a BK to discharge credit card debt when it isn't cost effective for credit card companies to sue to recover their money. They'll drive you nuts with their letters and telephone calls. So they get a judgment against you, and you find it impossible to carry on business. You re-file then. Or you wait until the market drops on real property, and re-file your BK.