September 8, 2023 By:
As a general rule, you can always convert a Chapter 13 to a Chapter 7, with one caveat—you must not have discharged debt in Chapter 7 within the last 8 years. There’s a fee to convert from Chapter 13 to Chapter 7 and you must file a “Notice of Conversion” with the bankruptcy court. Furthermore, you must be eligible to file under Chapter 7. That means you must submit to a “means test,” whereby you demonstrate to the court that you lack the resources to repay your creditors through a Chapter 13 proceeding.
Provided you meet the criteria and the court approves your transfer, you will be assigned a new Chapter 7 bankruptcy trustee. In addition, you’ll need to participate in a 341 meeting with creditors (even if you already met with creditors as part of the Chapter 13 proceeding). In most instances, you won’t have to file a new bankruptcy petition, but you’ll likely have to submit some new forms and may need to amend some of the schedules you previously submitted.
You can convert a Chapter 13 bankruptcy filing to a Chapter 7 liquidation At the Law Offices of Carrie Weir, all potential clients are entitled to a free initial consultation. To arrange an appointment, contact my office online or call 972-772-3083. I handle Texas personal bankruptcy filings in Kaufman County, Rockwall County, Collin County, Dallas County, Hunt County and the surrounding counties.