Converting your Chapter 13 Bankruptcy to Chapter 7

Bankruptcy Attorney in Georgia

A significant change in your life could make it difficult for you to keep up with your payment plan when you petitioned for Chapter 13 bankruptcy. Though it is possible to make adjustments to your Chapter 13 bankruptcy payment plan, a time may come when consistently paying your dues is no longer feasible. This is where converting your Chapter 13 bankruptcy to Chapter 7 bankruptcy becomes a viable option.

Like all other bankruptcy chapters, Chapter 13 bankruptcy is designed for you to take advantage of the bankruptcy law to wipe out your debt. However, it still involves needing to pay your creditors periodically within 3 to 5 years or until you have fully paid for the agreed amount. Converting your Chapter 13 bankruptcy to Chapter 7 is worth considering when looking to clear your debt but can no longer afford the payment plan.

Contact the Law Office of Jeffrey B. Kelly to schedule an appointment with a reliable bankruptcy attorney who can put you in a much better situation!

Why Do I Need a Bankruptcy Attorney in Georgia?

Aside from being armed with the skills, knowledge, and experience to walk you through the bankruptcy process, our law firm believes that every client deserves to work with a bankruptcy lawyer who:

• Is confident in their abilities to represent any client effectively.

• Gives you all the resources needed for you to be successful.

• Dedicates a lot of time and effort to every case.
• Carefully develops strategies that are focused on giving you the best possible outcome.

Regardless of your current situation, our law office ensures converting your Chapter 13 bankruptcy to Chapter 7 goes smoothly. We understand that even a tiny mistake can lead to undesirable consequences that can cause delays in your petition. A Georgia bankruptcy attorney will look at your circumstances and determine if converting your Chapter 13 bankruptcy to Chapter 7 bankruptcy makes sense. Contact our law firm immediately!

What are the Different Chapters of Bankruptcy?

By definition, bankruptcy is a process where the United States government assists people unable to pay their debts and businesses in financial trouble by either designing a repayment plan or liquidating their properties.

There are a total of five bankruptcy chapters according to the United States Bankruptcy Code:

• Chapter 13 Bankruptcy involves the adjustment of debts for individuals with regular income, allowing them to keep their assets and giving them three to five years to pay their debt fully.
• Chapter 7 Bankruptcy involves the liquidation of a debtor's non-exempt properties for debt relief.
• Chapter 11 Bankruptcy involves the reorganization of debts by a corporation or partnership to help their business stay afloat while paying creditors over time.
• Chapter 9 Bankruptcy involves the reorganization of debts by municipalities that include cities, towns, villages, school districts, taxing districts, and municipal utilities.
• Chapter 12 Bankruptcy involves the adjustment of debts by individuals considered by the Bankruptcy Code as family fishermen and family farmers.

To properly emphasize converting your Chapter 13 bankruptcy to Chapter 7 bankruptcy, the rest of this article will only focus on the first two chapters mentioned above.

What is Chapter 13 Bankruptcy?

Also called the wage earner's plan, Chapter 13 bankruptcy allows you to develop a repayment plan to clear all your debt within three to five years. If your monthly income at the time of filing is greater than the applicable state median, your plan will be for five years. If your monthly income at the time of filing is less than the applicable state median, your plan will only be for three years, unless a longer period is approved by the bankruptcy court.

Before filing for Chapter 13 bankruptcy or converting your Chapter 13 bankruptcy to Chapter 7, you must do the following:

• • Appear before the Bankruptcy court within 180 days before your petition and follow any orders they will give.
  • Attend counseling done by an approved credit counseling agency either individually or within a group (barring emergencies when there is a lack of approved agencies as determined by a bankruptcy trustee).

In addition, payment plans developed during credit counseling must be filed with the bankruptcy court.

The main advantage of filing for Chapter 13 bankruptcy is the chance to keep all your properties intact. Also, you won't be directly in contact with your creditors while under Chapter 13 protection. Nonetheless, you are still obliged to pay your dues within the set period, which can get quite expensive as time passes.

What is Chapter 7 Bankruptcy?

Unlike Chapter 13, filing for Chapter 7 Bankruptcy doesn't include creating a three to five years repayment plan. Instead, it involves gathering and selling most of your assets that are unprotected by exemptions. Also called liquidation, Chapter 7 bankruptcy will most likely result in you losing much of your property, making it crucial to know which of them are exempt before choosing to go through the process.

On top of appearing before the bankruptcy court and receiving counseling from an approved credit agency, you must pass a means test and a totality of the circumstances test before converting your Chapter 13 bankruptcy to Chapter 7 bankruptcy.

What is the Process of Converting your Chapter 13 Bankruptcy to Chapter 7 Bankruptcy?

Apart from significant changes in financial status, another reason for converting your Chapter 13 bankruptcy to Chapter 7 is the willingness to surrender certain assets like a house or a car you initially wanted to keep.

If you're looking to switch from Chapter 13 to Chapter 7, you should first accomplish all the Chapter 7 bankruptcy eligibility requirements. After that, you will file a Notice of Conversion with the bankruptcy court. They will then determine if you can receive a discharge and have your case closed.

Seek help from a Georgia bankruptcy attorney who will determine the following:

• • Check if you have a low enough monthly income.
  • Confirm if you have not received Chapter 7 discharge within the last eight years.
  • See if you have assets protected by bankruptcy exemptions and which ones you would likely have to give up. 

To learn more about Chapter 7 discharge and whether you're immediately qualified for additional debt relief, talk to our bankruptcy lawyer today!

Call our Bankruptcy Attorney in Georgia Now!

No matter what bankruptcy chapter you choose to petition for, there's no denying how stressful and difficult it is to go through this process. Our Georgia-based attorneys at The Law Office of Jeffrey B. Kelly are determined to help you overcome your financial troubles, particularly by converting your Chapter 13 bankruptcy to Chapter 7 bankruptcy. We also provide excellent legal services on immigration, personal injury, and credit card debt relief.

Visit or call our law office for a free consultation. We also have offices in Rome, Dalton, Kennesaw, Cartersville, Dallas, and Marietta.