QUESTION
Is it legal to convert chapter 13 filed jointly for a sole chapter 7 due to divorce?
Asked on Feb 13th, 2012 on Bankruptcy - Michigan
More details to this question:
Would the amount of the payment to the chapter 13 plan be reduced if I (solely) converted my case to a chapter 7? I'm doing this due to divorce filed after the joint chapter 13 was filed.
9 ANSWERS
Glen Edward Ashman
Sometimes. You need to get a lawyer, as the conversion of one joint case into two separate ones involves complex issues. This should not be the lawyer that represented both of you in the 13.
Answered on Feb 27th, 2012 at 1:07 PM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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I hope you do have an attorney and need to discuss that with your attorney as those issues are very complicated. You can finish the Chapter 13 together even if you divorce after filing the case and you can convert the case to a joint Chapter 7 but not to a separate Chapter 7. No party can be added to a bankrutpcy case and no party can be removed from a bankrutpcy case. Dismissing the Chapter 13 case is going to probably be required if you want to get a Chapter 7 discharge. There are no payments required in a Chapter 7 case. It is liquidation bankruptcy. There is no plan in Chapter 7.
Answered on Feb 27th, 2012 at 12:06 PM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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It happens all the time. There are fees to be paid and various motions to be made but it is perfectly normal.
Answered on Feb 27th, 2012 at 11:26 AM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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Either spouse can convert to chapter 7; the other spouse still owes the plan payment. If one spouse converts to chapter 7, the other spouse might be able to modify the plan to lower payments, however it is not automatic.
Answered on Feb 27th, 2012 at 10:12 AM
Bankruptcy: Creditor Attorney serving Grand Island, NE
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Milner Neuhaus & Judds
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If you convert to a Chapter 7 there would be no monthly payment.
Answered on Feb 27th, 2012 at 10:11 AM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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No. If your case were converted there is no payment.
Answered on Feb 27th, 2012 at 10:09 AM
Bankruptcy Attorney serving Hampton, VA
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Haven Law Group, P.C.
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One spouse can convert by them self. The spouse remaining in the ch. 13 will have to pay whatever the legal requirements are. This will have to be determined with your attorney.
Answered on Feb 27th, 2012 at 10:01 AM
Domestic Relations Attorney serving Huntsville, AL
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Ferguson & Ferguson
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If you have debt that you need to pay in a chapter 13, like a car for instance, then you have to file a motion to sever your case from your spouse and then rework your plan payment based on your income, debts and what you need to pay. In order to convert to a chapter 7 bankruptcy, you also have to file a motion to sever your case from your spouse and then convert it to a chapter 7.
Answered on Feb 27th, 2012 at 9:33 AM
It would be difficult for the Court to convert one party only in a joint 13 to a Chapter 7 if it can be done at all. Would have to be attempted by a separate Motion splitting the case which may or may not be granted. Much easier would be for you do voluntarily dismiss out of the Chapter 13 (and your spouse would remain in the 13), then you could file a new Chapter 7.
Answered on Feb 27th, 2012 at 9:27 AM