Fro a 13 to a 7

Can you covert to a chapter 7 if you are already in a 13 and can not make it and how much does it cost to do that?

Asked on June 14, 2009 under Bankruptcy Law, Alabama


M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Converting from a Chapter 13 to a Chapter 7 is the right of any debtor.  Some of the reasons for converting bankruptcies include inability to make plan payments for the Chapter 13 case, inability to make car or house payments after the plan has commenced, or to get the case over with.

First, you need to speak with the bankruptcy attorney handling the case.  He can help with any questions regarding how it is done and whether it is the best option to take.  One thing to check is to make sure eligibility is met.  The only requirement for converting a bankruptcy from a Chapter 13 to a Chapter 7 is that the case has not previously been converted.  If it has, it is not possible to convert the case to a Chapter 7. 

You will need to complete a new means test form.  The means test is how the court decides if a debtor is eligible to file for Chapter 7 bankruptcy.  If eligible, you then need to file a "Notice of Conversion" with the bankruptcy court before a Chapter 13 bankruptcy can be converted to a Chapter 7.  There is a conversion fee that must be paid when this notice is filed.  Next will be the meeting of the creditors.  This is when the creditors can object to the plan.  Finally, the trustee will then make a decision to approve or deny the debtor's request based on the information the debtor and his attorney submitted as well as any objections from creditors.

Aside from the conversion fee, the costs pretty much remain the same.  The conversion fee can vary.  Ask the trustee about this.

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