Should I Convert My Chapter 13 to A Chapter 7?

There are times when it is best to convert a Chapter 13 case to a  Chapter 7 and get a “fresh start.” The question is why you filed a  Chapter 13 and whether you still need to keep paying into your Chapter  13.

Is it a good idea to convert my Chapter 13 to a Chapter 7 and can I?

SOME REASONS TO CONVERT

  1. You  filed a Chapter 13 to save a car but now the car is not worth saving.  Perhaps the car has been broken down or was in an accident.
  2. You filed a Chapter 13 to save your home but it can’t be done any more or you no longer want to save it.
  3. You  filed a Chapter 13 because your income was too high but now there has  been a change of circumstances: You or your spouse lost a job; you now  have more people in your household; or your income went down when you  retired.
  4. Since the filing you incurred more debt that you cannot handle.
  5. The  Chapter 13 trustee is proceeding with a motion to dismiss for an  inability to maintain Chapter 13 payments and refiling a Chapter 13 is  not practical. (Of course it is best to discuss this with your lawyer to  see if it is best to allow the dismissal and then refile a Chapter 13.)

DO I QUALIFY TO CONVERT MY CHAPTER 13 TO A CHAPTER 7?

If the Chapter 13 was filed within 8 years of a prior Chapter 7 you cannot convert the Chapter 13 to a Chapter 7.

Likewise  if your income is too great you might not qualify for a conversion. A  Chapter 7 trustee might request an amended Means Test and/or amended  Income and Budget schedules.

Finally, if  you filed Chapter 13 to protect an asset, like a car that is paid off  or you inherited a share of your parent’s home, it could be sold if you  convert to Chapter 7.

HOW CAN I GET ADVICE ON CONVERTING?

Many  people linger in a Chapter 13 needlessly. You can always talk to your  lawyer about your current situation and review your options. You can  also ask us to look into your case and give a second opinion.

Robert J Adams & Associates has  helped many clients convert their case to a Chapter 7. The cost is low.  We have also substituted into cases to help Consumers get the relief  they needed.

You can always call us to discuss your problem and discuss your options. Our consultation is Complimentary and confidential.

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