Conversion from Chapter 13 to Chapter 7
If a debtor is in Chapter 13 bankruptcy and has surrendered property that was being paid in the plan then they may want to convert case to Chapter 7 bankruptcy. Some debtor’s will be currently unemployed and want to convert with the belief they should qualify to convert. The income over the most recent 6 month period is what decides if you can qualify to convert your case to Chapter 7.
If the debtor had a high disposable income then only has recent loss if income may not qualify. If the loss of income has been for 3 or more of the 6 month income period will have better chance of qualifying to convert. All income records for the last 6 months period should be provided to your attorney for review before qualifying determination is made on conversion.
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