What is Involved in Converting a Chapter 13 Case to Chapter 7?
By Jonathan Ginsberg, Atlanta Bankruptcy Attorney on Feb 25, 2008 in Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Conversion from One Chapter to Another
I recently received the following question from a reader of my Atlanta Bankruptcy blog:
In my research, I have found out that I should and have the right to file “Notice of Conversion” along with a maximum $25 court filing fee in order to have this done. I would like some direction or guidance to confirm this process.
Here is my reply: you are correct that the filing fee to convert your Chapter 13 case to Chapter 7 is $25. This fee must be paid at the time of filing.
I would suggest, however, that you will want to get competent legal advice before attempting to convert your case. Depending on where you live, you will need to file a new Form B22 (median income/means test). In addition, you will want to review your exemption schedules to determine whether any of your property is at risk.
The $25 represents the filing fee only. If you retain counsel to convert and file Chapter 7 paperwork, you will need to arrange to pay your lawyer to run the numbers and prepare your Chapter 7 filing. In my view, a conversion is a more complicated affair than a straight Chapter 7, so you may find that fewer lawyers are willing or qualified to undertake a conversion and that your fee for a conversion may be higher than a “clean” Chapter 7 case.
There are a number of posts within this Bankruptcy Law Network that address conversion from Chapter 13 to Chapter 7. These blog posts are a good place to start your research, but you should not take any action until you speak with a bankruptcy lawyer in your area who has experience in conversions.
If you liked that post, then try these...
Bankruptcy Liability Discharge: In Personam vs. In rem. PART II of II by Michael Doan
The Death Penalty for Bankruptcy Fraud by Brett Weiss, Maryland Bankruptcy Attorney
Term Objections in Chapter 13 Cases by Jonathan Ginsberg, Atlanta Bankruptcy Attorney
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