Do I need to file a motion to change from chapter 7 to a chapter 13 bankruptcy case?

After filing a petition for chapter 7 bankruptcy a debtor may discover she does not qualify for chapter 7 bankruptcy or the debtor may decide that she wishes to hold on to some assets.  In either scenario, the debtor can convert her chapter 7 bankruptcy to a chapter 13 bankruptcy.  To convert a chapter 7 to a chapter 13, the debtor must file a motion requesting the conversion. 

Of the numerous motions filed by a debtor in chapter 7 bankruptcy, a motion to convert to a chapter 13 bankruptcy is fairly rare.  To convert to chapter 13, a debtor must file a written motion with the bankruptcy court explaining the debtor’s wish and necessity to convert to Chapter 13.  In addition, a debtor still must comply with chapter 13 qualification requirements.  For example, to qualify for a chapter 13 bankruptcy, the debtor must demonstrate proof of regular, predictable income.  Proof of regular income is a requirement for chapter 13 eligibility and therefore is a condition of approval for a conversion to chapter 13.

After the court approves the debtor’s motion to convert, the debtor must file the necessary documents for the filing of a chapter 13, such as new schedules, and a repayment plan.  Additionally, the debtor’s creditors, the bankruptcy trustee, or the court may object and request additional hearings before the repayment plan is final.

Filing for bankruptcy is a complicated process.  Speak with an experienced bankruptcy attorney in your state if you are considering filing for bankruptcy.