What is the process for converting from Chapter 13 to Chapter 7?

The most common reasons a Chapter 13 debtor decides to convert to a Chapter 7 case are denial of confirmation of his Chapter 13 plan or an inability to make the Chapter 13 payments after his plan has been confirmed.  For a debtor in either of these situations, understanding the convert Chapter 13 process is imperative. 

The first step in converting from a Chapter 13 bankruptcy to a Chapter 7 is to file a Notice of Conversion.  At the time the Notice of Conversion is filed, the debtor must pay the difference between the Chapter 13 filing fee and the Chapter 7 filing fee.  Additionally, he must file any supplemental schedules which may be necessary as well as the Statement of Intention and the Statement of Current Monthly Income and Means Test Calculation (Form 22A). 

The debtor will be required to attend a Meeting of Creditors as part of the conversion process.  At the Meeting of Creditors, the Chapter 7 trustee will question the debtor about the contents of his petition and his overall financial situation.  If any creditors appear at the Meeting of creditors, they have the right to examine the debtor as well. 

It’s important to note that the conversion from Chapter 13 to Chapter 7 is effective immediately upon the filing of the Notice of Conversion.  A debtor who has converted from a Chapter 13 to a Chapter 7 can expect to receive a discharge within about 90 days of the date he filed the Notice of Conversion.