Steps to Convert Chapter 13 Bankruptcy to Chapter 7
Debtors come in to file a Chapter 13 bankruptcy to save their possessions from being reposed. They feel that even though it is a hard decision to file, that they have no other choice. They hope that things will look brighter once they will file and get life back on track until something happens to cause them to derail once again. They get behind on their Chapter 13 plan payments and their mortgage and they don’t know what else to do. It has come now to make a hard decision to let these items go and start all over. If one of the Debtors has lost their job, it is possible they can convert their case to a Chapter 7 bankruptcy case. The bankruptcy attorney will need to evaluate your case to ensure if you qualify to convert your case. There are a variety steps that need to be taken to ensure that you qualify.
The first thing would be to obtain new financial information, such as pay stubs and new expenses, to see where you stand. This will be the first hurdle that you must get over. Once this is accomplished then the bankruptcy attorney will need to review and make sure that you haven’t filed a previous Chapter 7 bankruptcy. If it has been filed within the last 6 years, you will not be able to convert your case to a Chapter 7. It could be a possibility to dismiss your chapter 13 and wait and file your chapter 7, but you lose the protection that you have under the bankruptcy code. If this is the case, you may want to look at modifying the Chapter 13 plan and lower your payments if your income has changed and keep the protection you deserve in place from the creditors calling and harassing you. If you have any questions or concerns about what you should do if you can’t afford it any longer, please contact your bankruptcy attorney right away.
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