Legal Question in Bankruptcy in California

Re: Helpless

First, to address your car needs -- You might ask the Chapter 13 trustee to approve a new car loan to purchase a new (or used) car. Since the old car is now totaled, I would think the old car loan has no security and therefore any difference between what your insurance would pay and the remainder of the loan would fall into the "unsecured" category of your Chapter 13 plan. You might be able to modify the plan accordingly.

As for converting to Chapter 7, without more information, it's difficult to say whether you would qualify. If you do, more than likely you will not lose your furniture. Household goods and furnishings are exempt up to a certain value per item. The only reason you might lose some of them is if they are security for some other debt. As for back taxes, you might talk to a lawyer about whether they are dischargeable. There are certain criteria that allow older taxes to be discharged. I'd be more concerned if you have substantial equity in the house. If you're already having these questions, it might be wise to have a lawyer review all your financials before you do something that you would regret later.