If you have filed a Chapter 13 bankruptcy and you are struggling to make your monthly plan payments, you should confer with your bankruptcy attorney regarding converting your case to a Chapter 7. The process to convert a Chapter 13 is usually straightforward. Your lawyer can file a Notice of Conversion, pay the fee, and your case is typically converted to a Chapter 7 within a few days. Although the process to convert from Chapter 13 to a Chapter 7 is fairly simple, you must determine whether you qualify for a Chapter 7. This means that you must pass the means test.
Once the court has converted your case to a Chapter 7, the trustee appointed to supervise your case will schedule a meeting of creditors. Even though you had a meeting of creditors in your Chapter 13 filing, you must have another meeting of creditors with your Chapter 7 trustee.
It is also typically necessary to file additional pleadings so your case will comply with the requirements of Chapter 7. For instance, a Chapter 7 debtor is required to file a Statement of Intent to notify the court and creditors what the debtor intends to do with property that has been pledged as collateral for secured loans. You will also need to amend your schedules and statement of financial affairs to include any changes that have occurred during the time between the date of your Chapter 13 filing and the date your case was converted.
If you are currently in a Chapter 13 case and you are no longer able to afford it, we can help. If you are considering filing a bankruptcy and you need help determining which type of filing would be best for you, contact Fitzgerald & Campbell to schedule an appointment. We do not offer just one debt relief option, we don’t push you in one direction. If bankruptcy is right for you, we will tell you. If it’s not, we will tell you that. If bankruptcy is your get-out-of-debt plan, it needs to be done right. It needs to be in the hands of experienced lawyers who have been there before. Contact us today!