Conversion – Saving a Struggling Chapter 13 Case
If you have filed a Chapter 13 bankruptcy case and you are struggling to make your plan payments, you may want to consider converting your case to a Chapter 7. The conversion procedure is usually simple – your lawyer files a Notice of Conversion and pays any required fees. Once this is accomplished, your case will be converted to a Chapter 7 within several days.
When your filing has been converted to a Chapter 7, the new trustee will be appointed and he or she will schedule a new meeting of creditors as required by 11 U.S.C. §341. Even though you had a prior meeting of creditors in your Chapter 13 case, you must have another one before your Chapter 7 trustee.
You will also be required to file additional pleadings in your Chapter 7 case since it has different requirements than a Chapter 13 filing. For instance, in a Chapter 7 case the debtor is required to file a Statement of Intent so the court and creditors are aware of what the debtor intends to do with property that has been pledged as collateral for secured loans. Further, you will likely need to amend your schedules and statement of financial affairs to advise the court of any financial changes that you have experienced between the date you filed your Chapter 13 case and the date you converted to a Chapter 7.
If you are struggling in your Chapter 13, don’t give up and allow your case to be dismissed without exploring the option of conversion. Let us review your situation and help you understand all of your options, including how converting your case could benefit you.
At The Law Office of Diane Anderson, our lawyer has faced Chapter 7 bankruptcy. She understands the anxiety and fear that accompanies working through this process. But, after coming out on the other side, she started her own law firm and is living a life with less worry and strife. Contact us today to get the help and guidance you need in order to take control of your finances.