Legal Question in Bankruptcy in Texas
Chapter 13 questions
I am in Ch.13. I recently found out that I really didn't need to be since we were current with our house payments. At this time, we are about to incur significant medical bills, and our CH 13 payments are about to be increased to the point where we will have great difficulty in paying them. My question is what happens if we quit paying the trustee, and our Ch 13 is dismissed? I know creditors will want payment, but all is unsecured debt. How does this affect credit report other than being reported?
2 Answers from Attorneys
Re: Chapter 13 questions
You can convert to Chapter 7, which will wipe out your unsecured debt and close the Chapter 13. You'll need your attorney to file the conversion paperwork and there will be another 341 meeting
Re: Chapter 13 questions
Instead of just letting it get dismissed, you should consider converting it to Chapter 7 that will get you discharged from unsecured debts.
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