Converting from Chapter 13 to Chapter 7 Bankruptcy

Qualifying for Chapter 7 isn't always easy. You'll need to pass a means test that shows the court that you need most of your debts discharged. This allows you to walk away from qualifying debts without repaying them.

When Chapter 7 isn't an option, Chapter 13 is the next step. But even if you're already under a Chapter 13 repayment plan, you may be able to shift to Chapter 7.

The Craig Black Law Firm regularly helps clients file Chapter 7 and Chapter 13 paperwork and can help you apply for a conversion. First, though, we'll need to make sure you'll qualify. If you're considering converting to Chapter 7, give me a call at 678-888-1778 or fill out this contact form.

Reasons for a Chapter 7 Conversion

If you're under a Chapter 13 repayment plan, you're making regular payments toward your bills. With Chapter 7, though, you don't have to make those payments. Your debts are discharged, and you walk away. The downside is that assets will be sold to help pay off your creditors with Chapter 7, while Chapter 13 allows you to keep assets as long as you stick to the repayment plan.

However, financial circumstances can change after you agree to a repayment plan. You might have lost your job or gone through a divorce. Your new situation might make you eligible for Chapter 7 when you weren't before. Another common reason for a conversion is that debtors previously wanted to hold onto property they're now willing to release. In both cases, a conversion can make good financial sense.

Qualifying for Chapter 7

While having Chapter 13 protection doesn't exclude you from Chapter 7, you'll need to qualify for the increased protection. Some courts will require you to pass the means test, which means providing information on your income and expenses. You can fill out the forms and use the calculator on either form 122A or 122C to determine if you'll qualify.

Even in states that don't require a means test, though, you'll have to answer some questions. Chances are, you'll need to explain to the court why your case should be converted, which likely means demonstrating that you can't afford the repayment plan under your current circumstances.

Requesting the Chapter 7 Conversion

To convert from Chapter 13 to Chapter 7, you'll need to file a motion to convert to the U.S. Bankruptcy Court. You'll pay a small fee. The filing fee for Chapter 13 is lower than the Chapter 7 fee, so this amount makes up that difference.

Once you've submitted the paperwork, the court will need to do its due diligence. You'll meet with a trustee again, and creditors will be given the opportunity to object.

How We Can Help

If you're considering a Chapter 13 to Chapter 7 conversion, the Craig Black Law Firm can help. When you call 678-888-1778, I'll always be the one answering to help guide you on your path to financial freedom.

META TITLE: Chapter 13 to 7 Conversion | Craig Black Law Firm

META DESCRIPTION: Converting from Chapter 13 to Chapter 7 bankruptcy can be a great option for those who need it. Here's what you need to know.