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Michael Anthony Cox

Michael Cox’s Answers

2 total

  • Can I pay off my chapter 13 early?

    I filed chapter 13 a couple of years ago and have been making payments to the trustee on a regular monthly basis. But now my car has died and I don't have money to buy a new car and the dealer said I cannot get a loan because I am in bankruptcy. ...

    Michael’s Answer

    As you can probably tell from the responses, the answer to your question depends upon the local practices of your jurisdiction. In our jurisdiction, it depends upon the trustee and source of funds. If the funds are a gift or from an exempt source (e.g. 401k), often the plan can be bought out sooner. Often it also depends upon whether you were above or below median income. Some trustees will allow below median income debtors to buy out with gifts or exempt funds if the debtors would have been eligible for Chapter 7 relief. Of course, if you are a 100% dividend plan, you can buy out anytime.

    A solution to your situation may be to find the right lender. Here in Columbus, Ohio, we obtain car loans while in Chapter 13 all the time. There are a couple local banks and multiple car dealerships that will pre-approve for a certain amount that we then get approved by the Trustee or Court.

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  • Can a Chapter 7 be filed while a Chapter 13 repayment plan is in effect?

    My husband and I are separating after 24 yrs of marriage and I am in the process of getting a legal separation as well as giving him legal title to our home via a quit claim deed. We have paid 3 yrs of a 5 yr Chapter 13 repayment plan and will co...

    Michael’s Answer

    You wouldn't want to file a Chapter 7 while your Chapter 13 is pending, but you do have a few options that would provide the relief you are seeking.

    Conversion of your case to Chapter 7 would sweep in all dischargeable debts pursuant to 11 USC 348(d) incurred up until the conversion date. If you and estranged husband are in agreement with how to handle your debts and having two households has lowered your disposable income enough, you could convert the existing case.

    If you are not on the same page, you can convert yourself only, which results in a new case number and requires the payment of a full Chapter 7 fee. In most cases this would mean that you would have obtained different bankruptcy counsel.

    You also have the option of dismissing your portion of the Chapter 13 case and then filing a Chapter 7, but it would be rare that this option has any benefit over just converting yourself out of the joint Chapter 13.

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