Option to Reinstate to Convert case to Chapter 7 Bankruptcy after Dismissal.
After your Chapter 13 case has been dismissed then you may decide to surrender secured property, such as home or vehicle, to allow your case to be reinstated and convert to Chapter 7 bankruptcy. Updated pay stubs and expense information must be provided to determine if you qualify to convert to Chapter 7 bankruptcy.
Your eligibility of conversion to Chapter 7 varies depending on when your case was filed. A Chapter 13 Bankruptcy cases file before October 17, 2005 has different qualifications than a case filed under new reform bankruptcy laws. Discuss your current financial situation with your attorney.
Under new reform law, if loss of job or decrease in household income was the reason you were unable to meet your Chapter 13 plan payments then you will likely qualify to convert your case. Your income for last 6 months, or lack of income, prior to your conversion of bankruptcy case determines your eligibility.
Please fill out our free evaluation form to determine if bankruptcy is right for you.
