Conversion from chapter 13 to chapter 7
If your situation is not going to change
and you know you can’t make the payments, you may be able
to convert your chapter 13 to a chapter 7. You must file a
notice of conversion with the court and pay $25.00 filing
fee. You must file amended Schedules I and J, amended
Schedule B if the personal property you own has changed,
and amended Schedule F if you are adding any new creditors.
Be aware, that if you have any assets over the exemption
limits, they will now become an asset of your bankruptcy
estate. If you filed your chapter 13 bankruptcy to save
your house or car, when you convert to chapter 7, you will
have to surrender the property.
If you already received a chapter 7 discharge less than
eight years ago, then conversion is not an option for you
because you cannot have two chapter 7 discharges within an
eight year period.
Upon filing of the notice of conversion, your case will be
transferred from the chapter 13 trustee and assigned to a
chapter 7 trustee. You will attend another 341 meeting of
creditors, but this time with the chapter 7 trustee. Your
case will then proceed just as if you filed a chapter 7.