Converting Your Case from a Chapter 7 to a Chapter 13 Bankruptcy

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If you have filed for chapter 7 bankruptcy but are now not sure it is the best option for you, you may wonder about converting your case from a Chapter 7 bankruptcy to a Chapter 13 bankruptcy. It is common for those who have filed for Chapter 7 to want to change to Chapter 13 bankruptcy when they realize that they will lose their assets.  Under Chapter 7, a trustee will sell valuable assets to help pay off your debts, but sometimes, the loss of a car, a home, or important valuable that is important to you and your family proves to be too much.  Your only option to save your assets that matter to you is to convert your Chapter 13 case into a Chapter 7 case. 

Converting Your Case from a Chapter 7 to a Chapter 13 Bankruptcy

Many people do not know that they have the right to convert their case at any time from Chapter 7 to Chapter 13 bankruptcy.  The Federal law protects this right.  In fact, all people who file Chapter 7 are allowed to convert to Chapter 13 at any time, whether or not the trustee agrees with the motion.  Even if the trustee objects, you may still have your petition granted by the bankruptcy court.  Many who choose to work with Chapter 13 successfully keep their valued belongings while learning to deal with a new financially responsible lifestyle.

It is also possible to get a conversion from a Chapter 13 case to a Chapter 7 case.  This option might work well if you want to let your home go into foreclosure instead of making a payment plan that is too high, or if you want to get more of your debt forgiven. Chapter 7 wipes out your debts completely without a payment plan, and for some people this option is better.  However, you cannot always qualify to do this, as your income is considered.

What Do I Have to Do To Convert?

Simply put, it is your job to file a motion to convert with the bankruptcy court.  This process is actually very simple, and provided that your creditors will get at least as much with a Chapter 13 bankruptcy as they would with a Chapter 7, the court should approve this motion.

Getting Help

You should consult with an attorney if you are planning on converting your case from a chapter 7 to a chapter 13 bankruptcy.  Although the process is very simple to understand, every individual’s own bankruptcy case is different.  After all, every case deals with different assets, different people, different locations, and different payment plans.  Your attorney might be able to point out pros and cons to making a switch (or not making a switch) from Chapter 7 to Chapter 13, or vice versa.  He or she might be able to advise you further, about dealing with amendments to your payment plans and managing your debt better. 

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