Is It Possible To Transform Your Chapter 13 Bankruptcy To Chapter 7?

Is It Possible To Transform Your Chapter 13 Bankruptcy To Chapter 7?

Unless you have already received a Chapter 7 bankruptcy discharge within the last eight years, you can convert your Chapter 13 case to Chapter 7 at any time if you can no longer afford to make your Chapter 13 bankruptcy plan payments, you may be able to convert your case to a Chapter 7. To transform your Chapter 13 to a Chapter 7, you simply register a Notice of Conversion aided by the court and spend a transformation cost. Nonetheless, remember you must nevertheless be eligible for Chapter 7 bankruptcy so that you can finish your situation and get a discharge (talked about below).

Reasons To Convert The Case

As a whole, many debtors convert their Chapter 13 bankruptcy to Chapter 7 because:

Qualifying For Chapter 7 Bankruptcy

To be eligible for Chapter 7 bankruptcy, you generally need certainly to pass through an easy method test. But bankruptcy courts are split on whether or not the means test applies in a Chapter 7 situation which was transformed from the Chapter 13. Though some jurisdictions require debtors to pass the means test if they convert their Chapter 13 to Chapter 7, other courts have actually held that the means test just isn’t relevant in a transformation. […]

By |March 14th, 2021|best rated installment loans|0 Comments
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