What will hapen with my severance pay and unpaid vacation time after converting a Chapter 13 to Chaper 7 and choosing state exemptions?
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What will hapen with my severance pay and unpaid vacation time after converting a Chapter 13 to Chaper 7 and choosing state exemptions?
Asked on September 26, 2012 under Bankruptcy Law, California
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
Since you are converting your bankruptcy filing from a Chapter 13 (reorganization) to a Chapter 7 (liquidation) you would be entitled to keep your severance pay and unpaid vacation subject to paying off certain allowable claims of your creditors who have timely filed proof of claims against your bankruptcy estate.
In the end, most likely if you receive a bankruptcy discharge you will pay out pennies on the dollar claimed against you.
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