The most common conversion is from a Chapter 13 bankruptcy to a Chapter 7. This allows you to discharge debt which you would otherwise have to pay back through your Chapter 13 plan. Converting a bankruptcy usually occurs when someone takes a big dip in income which prevents them from paying off any of their debt. The loss in income has to be pretty severe, as the court will normally just adjust one’s payment plan to account for changes in income. This means that most people who file a Chapter 13 can’t convert their bankruptcy, because either their income is too high or they have too much disposable income. Even if you can convert your bankruptcy, it might not be in your best interest to do so. Keep in mind that the trustee can liquidate unprotected assets. So, you might want to stick with your Chapter 13 plan if you have a lot of equity in your home or car.
I’m more than happy to help answer any questions you have about converting your bankruptcy case. Feel free to give our office a call if you are interested in a free consultation with a bankruptcy attorney in Fairfield.
