Is It Possible To Transform Your Chapter 13 Bankruptcy To Chapter 7?
Unless you have already received a Chapter 7 bankruptcy discharge within the last eight years, you can convert your Chapter 13 case to Chapter 7 at any time if you can no longer afford to make your Chapter 13 bankruptcy plan payments, you may be able to convert your case to a Chapter 7. To transform your Chapter 13 to a Chapter 7, you simply register a Notice of Conversion aided by the court and spend a transformation cost. Nonetheless, remember you must nevertheless be eligible for Chapter 7 bankruptcy so that you can finish your situation and get a discharge (talked about below).
Reasons To Convert The Case
As a whole, many debtors convert their Chapter 13 bankruptcy to Chapter 7 because:
Qualifying For Chapter 7 Bankruptcy
To be eligible for Chapter 7 bankruptcy, you generally need certainly to pass through an easy method test. But bankruptcy courts are split on whether or not the means test applies in a Chapter 7 situation which was transformed from the Chapter 13. Though some jurisdictions require debtors to pass the means test if they convert their Chapter 13 to Chapter 7, other courts have actually held that the means test just isn't relevant in a transformation.
Because you could not qualify for a Chapter 7, you should discuss the matter with a knowledgeable bankruptcy attorney before converting your case if you filed a Chapter 13 bankruptcy. Additionally, take into account that regardless if the Court will not need you to conform to the means test once you convert, you might nevertheless have to show the court exactly how your economic circumstances have actually changed and just why you'll not any longer manage to take a Chapter 13.
Exactly What Are The Results Whenever You Convert Your Bankruptcy?
Once you convert your instance, you'll be assigned a fresh Chapter 7 bankruptcy trustee.