QUESTION

How do I convert Chapter 13 to Chapter 7?

Asked on Jan 18th, 2012 on Bankruptcy - Georgia
More details to this question:
My Ch. 13 is scheduled for a hearing to dismiss for failure to provide copy of post petition tax return. If I want to convert to a 7 do I simply file a motion with Virginia courts to convert?. Should I do so before or after the hearing. I wanted to initially file a 7 but because of timing my income was too high. I get paid 3 times a month twice a year. If I can convert I am going to file in Feb. that way my income will be less because I will not include one of those months I am paid three times.
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2 ANSWERS

Chapter 7 Bankruptcy Attorney serving Milwaukee, WI at Law Offices of Deborah A. Stencel
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If you intend to convert, I would file before the hearing on the motion to dismiss. The case could be dismissed at the hearing and then you would have no opportunity to convert. Please note, however, that the way you are paid is very common. When a bankruptcy is filed, the income is calculated by trustee's office (and usually the filer;s attorney) in such a way as to take into account that the filer is paid 26 times a year, not 24. Therefore, if you have no other change to your income other than what you described, you may not be eligible to convert. You should schedule a consultation with an experienced bankruptcy attorney to discuss the possibility and feasibility of conversion. Finally, you are required to turn over tax forms in Chapter 7 and 13. Whether your refunds must be turned over depends on your plan (in a 13) and on your exemptions (in a 7).
Answered on Feb 02nd, 2012 at 1:19 PM

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Glen Edward Ashman
You are in way over your head. Pro se cases almost never go well. An improper conversion could be financially catastrophic. If you wait until after a hearing about a dismissal, it's too late. And since you have failed to comply with a court order (and why would you conceal a tax return), any chapter 7 you file will also likely be dismissed. The fact that you do not understand that being paid 2 or 3 times in a month does NOT change your monthly income at all also shows how deep you are in trouble. You are actually receiving 2.3 paychecks a month. I gather you don't understand the multiply by 26 then divide by 12 math that you must use. Note that if you were previously ineligible for a 7 a conversion may draw a bad faith challenge, and you may also need to consider post petition modification. In other words, before you make a real mess, get a real lawyer.
Answered on Feb 02nd, 2012 at 10:49 AM

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