Are You Allowed to Convert a Chapter 13 Bankruptcy to a Chapter 7 Bankruptcy?
When a person is working through a Chapter 13 bankruptcy payment plan, they may encounter very serious financial problems that they had not anticipated. These plans can often take years to complete, leaving the debtors vulnerable to new challenges that may arise in the course of paying back their existing debts. Injuries, job losses, and other concerns can leave a person without the ability to pay according to the terms of their bankruptcy plan. As a result, these debtors may want to consider converting their bankruptcy to a Chapter 7 bankruptcy.
If you are considering a move to convert your bankruptcy from a Chapter 13 case to a Chapter 7 case, we can help. Contact the Joliet bankruptcy lawyers of the Law Offices of Stuart B. Handelman, P.C., at 815-722-2201.
When You Can Convert Your Case
A person who qualifies for Chapter 7 bankruptcy may be allowed to convert their existing Chapter 13 case to a Chapter 7 case at any point in time. There is an exception in that two Chapter 7 discharges cannot occur within an 8-year span.
In order to convert to a Chapter 7 case, a person needs to fulfill the following:
- Passing the means test
- Filing the proper paperwork
- Going through an additional meeting with creditors
- Filing for exemptions in the Chapter 7 case
In some cases, different courts treat deadlines differently. A person may want to consult with a legal advisor to find out how they should prepare to convert their case.
If you cannot manage a Chapter 13 case any longer and want to convert your case, we may be able to advise you through this often complex process. To learn more, contact the Joliet bankruptcy attorneys of the Law Offices of Stuart B. Handelman, P.C., by calling 815-722-2201 today.