QUESTION
Can I convert my Chapter 13 bankruptcy to a Chapter 7? How?
Asked on Jun 12th, 2015 on Bankruptcy - Michigan
More details to this question:
I cannot pay my Chapter 13 payments. This is because I was laid off recently and cannot find any work anywhere. I was told that my best option would probably be to convert my Chapter 13 into a Chapter 7 bankruptcy. Is this my best option at this point?
9 ANSWERS
An experienced BK lawyer would have to look at your current CH13 filing to answer those questions. Not sure what caused you to file CH13 to begin with. Also, without looking at the CH13 file, I can't tell you if its better to let this case get dismissed, and file a new CH7, or convert this case to a CH7. Answering legal questions without sufficient information is dangerous, at best.
Answered on Jun 15th, 2015 at 11:41 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
at
Ronald K. Nims
Update Your Profile
To convert you file a motion to convert with the bankruptcy court. ?If the reason you filed a Chapter 13 instead of a Chapter 7 in the first place was that your income was too high, then it'll probably work out OK. ?If the reason was that you're trying to protect your house from foreclosure, then you better start looking for a cheap rental.?
Answered on Jun 15th, 2015 at 12:39 AM
You might be able to convert your case to Chapter 7. However, if you were not eligible to file a Chapter 7 when you filed the Chapter 13, you cannot later convert the case to Chapter 7. When you convert your case to Chapter 7, the Chaper 7 Trustee will be looking at the assets you possess at the time of conversion. So, you will need to look at the values of your assets carefully before you choose to convert your case. And, there are some debts that will be discharged in Chapter 13 and not in Chapter 7, so you need to understand whether you have any of those types of debts. And experienced bankruptcy attorney can help you make the right decision.
Answered on Jun 15th, 2015 at 12:38 AM
Deborah F. Bowinski
If you are currently in a chapter 13 then hopefully you have a bankruptcy lawyer. Your lawyer is the one you should be addressing all your questions to.
Answered on Jun 12th, 2015 at 8:27 PM
Bankruptcy Attorney serving Madison, WI
at
Richard B. Jacobson & Associates, LLC
Update Your Profile
Under these circumstances, and if you have reviewed your options with your lawyer (and you need one), including seeking to modify the Chapter 13 Plan, and/or reducing your personal expenses, and no alternative can work, then converting to a Ch. 7 is definitely worth considering.
Answered on Jun 12th, 2015 at 8:18 PM
Conversion is easy to do, just by filing notice with the court and payment of a $25 fee, but whether it is a good idea depends on whether you will lose any assets in the process. You need to make sure that you have exemptions for all your remaining assets. Once you convert to chapter 7, you cannot voluntarily dismiss it if you discover you could lose some assets. If your assets exceed the exemptions, you may be better off to dismiss your chapter 13 now while you still can.
Answered on Jun 12th, 2015 at 1:41 PM
The decision to convert from Chapter 13 to Chapter 7 is not as simple as you might think. You need to consider whether or not you are eligible for a Chapter 7 discharge, whether you are willing to give up your Chapter 13 goals, and what the likelihood is that you will be able to find some other work. Assuming you are eligible and willing to give up the goals, converting may be a better option than letting your Chapter 13 die.
Answered on Jun 12th, 2015 at 1:19 PM
Bankruptcy Law Attorney serving Livingston, NJ
Partner at
Law Office of Stuart M. Nachbar, P.C.
2 Awards
You would need to file a Notice of Conversion and you must qualify for same under the Means Test (Form B22).
Answered on Jun 12th, 2015 at 1:06 PM
Bankruptcy Attorney serving Livonia, MI
at
Charles J. Schneider, P.C.
Update Your Profile
The answer to this question requires far more information than you are providing.
Answered on Jun 12th, 2015 at 1:03 PM