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Adding Debts to a Discharged Bankruptcy - The Bills.com Blog
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Adding Debts to a Discharged Bankruptcy
Question: I went thru a chapter 13 bankruptcy and just got my discharge. Initially I wanted to keep my RV which I live in but find that the payments and space rent are overwhelming and i now want to surrender the rv. My lawyer told me I could do this two months after the discharge and the loan would be discharged as part of the bankruptcy but Idont know how to proceed. Please help.
Answer: The best person to help you at this point would be your bankruptcy attorney, whom you should consult with as soon as possible to help you determine the best course of action available to you in this situation. Since you are no longer able to afford your RV payments, I assume that your income has decreased significantly since you first filed for Chapter 13 bankruptcy protection. If that is the case, then you may be able to convert your Chapter 13 case to a Chapter 7, which may allow you to discharge your debts, depending on the type of debt you owe, and therefore end your monthly Chapter 13 payments. Again, you will need to speak with your attorney to determine if a conversion
from Chapter 13 to Chapter 7 is advisable, or even possible, in your situation.
Unlike a Chapter 13 bankruptcy, which requires you to make monthly payments to your creditors, a Chapter 7 generally discharges most unsecured debts, so if your debt is mostly comprised of credit card or other unsecured debt, a bankruptcy conversion may be able to help you. However, if the debt in question is secured debt, tax debt, or delinquent student loans, you will not be able to discharge your debt under a Chapter 7, so a conversion would probably not make sense. To learn more about bankruptcy, and the different types of bankruptcy available to consumers, I encourage you to visit the Bills.com Bankruptcy
Resource Center.
A conversion of your Chapter 13 to a Chapter 7 may be the best option available to rid yourself of the expensive Chapter 13 payments. However, you must discuss this option carefully with your attorney before deciding to go down that path. If you are struggling with other debt problems, if you want a free debt consultation with one of Bill's approved debt help partners, click here: Debt Relief Savings Quote
I wish you the best of luck in resolving your financial difficulties and hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
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