What Happens If I Cannot Complete My Chapter 13 Plan (Part Two)
By Kevin Gipson, New Orleans Bankruptcy Attorney on Feb 11, 2007 in Bankruptcy Practice and Procedure, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, General Bankruptcy Information
In Part One of this topic we discussed modification of a Chapter 13 plan.
In this second part, we will discuss converting a Chapter 13 bankruptcy into a Chapter 7 bankruptcy.
You as a debtor have an absolute right to convert from a Chapter 7 to a Chapter 13 case.
In order to convert the following actions must occur:
- A Chapter 7 means test must be completed;
- A Statement of Intentions with regard to your secured debts must be filed;
- If new debts have been incurred since the filing of the Chapter 13 bankruptcy the schedules of debts must be supplemented to reflect the new debt; and
- A Chapter 7 Meeting of Creditors will be scheduled.
In addition to financial reasons of a change in circumstances making a Chapter 13 plan no longer feasible, there are other reasons to convert to a Chapter 7 plan.
Among these reasons is if the asset(s) sought to be protected by the Chapter 13 plan or destroyed, if they have been lawfully repossessed by a creditor or if the asset(s) is no longer of value to the debtor.
In Part Three we will discuss the Hardship Discharge.
If you liked that post, then try these...
Chapter 13 Conversion to Chapter 7: What Asset Values are used? by Michael G. Doan, San Diego Bankruptcy Attorney
What Are The Creditors Duties Once They Have Been Informed Of A Bankruptcy Filing- Part 2 by Peter Orville, Attorney at Law
Means Test Upon Conversion to Chapter 7 by Nicholas Ortiz, Boston Bankruptcy Attorney
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