Converting From Chapter 13 to Chapter 7

: Chris Lee Law Firm

  Filed under: Bankruptcy

coversionThere are a number of reasons why you might decide to convert your Chapter 13 Dallas bankruptcy into a Chapter 7 plan. In some cases this decision is made for you by the bankruptcy court in a forced conversion, but there are also circumstances which can result in a conversion becoming the desirable option for you.

Bankruptcy Conversion

Easily the most common reason to decide to convert your Chapter 13 Dallas bankruptcy into a Chapter 7 would be due to changed financial circumstances. As you probably know, Chapter 13 is a repayment plan of three to five years that is put in place based on your financial situation at the time of the filing. Naturally, a lot can happen in that three to five year time frame to change your ability to make those regular payments. If your financial circumstances have grown vastly different and you can no longer make those payments, converting your Dallas bankruptcy from Chapter 13 to Chapter 7 may make good sense. (You can also apply to have your Chapter 13 payment reduced through the Dallas bankruptcy courts.)

If you fail to make payments in your Chapter 13 plan, the court may rule that you must convert your plan to a Chapter 7. This is called a forced conversion and can only be done if the bankruptcy judge has ample cause to make the ruling, such as consistently missed payments. There is no penalty for a forced conversion. All other requirements for a successful Chapter 7 discharge must still be met, however, including the means test and all other requirements for Dallas bankruptcy.


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