Conversion From Chapter 13 To Chapter 7
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Understanding the Conversion Process
Welcome to Troy Powell Law Firm, your trusted partner in all matters related to bankruptcy law. In this article, we will explore the conversion process from Chapter 13 bankruptcy to Chapter 7 bankruptcy, providing you with valuable insights and expert guidance to navigate through this legal transition.
The Basics of Chapter 13 and Chapter 7 Bankruptcy
Before delving into the particulars of the conversion process, let's briefly understand what Chapter 13 and Chapter 7 bankruptcy entail.
Chapter 13 bankruptcy, also known as a "wage earner's plan" or "repayment plan," allows individuals with regular income to create a manageable repayment plan over a period of three to five years, during which a portion of their debts are paid off.
On the other hand, Chapter 7 bankruptcy, often referred to as "liquidation bankruptcy," involves the sale of non-exempt assets to repay creditors. It is generally more suitable for individuals with limited income and substantial debt.
When and Why Consider Conversion from Chapter 13 to Chapter 7
There may be various reasons why an individual, in the midst of Chapter 13 bankruptcy proceedings, would consider converting their case to Chapter 7 bankruptcy. Several common scenarios may prompt this transition:
Lack of Sustainable Repayment Plan
If a Chapter 13 debtor finds it increasingly difficult to adhere to the agreed-upon repayment plan due to unforeseen circumstances, such as job loss or significant financial setbacks, converting to Chapter 7 may relieve the burden of continued repayments.
Inability to Meet Plan Requirements
Chapter 13 bankruptcy plans require strict adherence to guidelines and timely payments. If a debtor consistently falls behind on these requirements, converting to Chapter 7 might be a more viable option to achieve a fresh start with their financial situation.
Change in Financial Circumstances
A debtor's financial circumstances can change significantly during the duration of a Chapter 13 repayment plan. If their income decreases or they encounter unexpected expenses, converting to Chapter 7 may offer a more suitable solution to their current financial challenges.
The Conversion Process
Converting from Chapter 13 to Chapter 7 bankruptcy involves several steps and requires the guidance of an experienced bankruptcy attorney. Here's a brief overview of the process:
1. Consultation with an Attorney
The first step in the conversion process is scheduling a consultation with a knowledgeable bankruptcy attorney, such as those at Troy Powell Law Firm. During this initial meeting, your attorney will evaluate your situation, assess the feasibility of conversion, and provide personalized advice.
2. Filing a Motion with the Court
If you decide to move forward with conversion, your attorney will file a motion with the bankruptcy court requesting the change from Chapter 13 to Chapter 7. This motion must detail your reasons for conversion and any relevant financial information.
3. Meeting of Creditors
After the motion is filed, a meeting of creditors will be scheduled. This meeting provides an opportunity for creditors to voice any objections to the conversion, although objections are relatively rare in such cases.
4. Completion of Credit Counseling Course
In accordance with bankruptcy laws, individuals who convert from Chapter 13 to Chapter 7 must complete a credit counseling course before their case can proceed. Your attorney will guide you through this requirement and ensure that you fulfill all necessary obligations.
5. Liquidation and Discharge
Once the conversion is approved, any non-exempt assets will be liquidated to repay eligible creditors. After the successful completion of this phase, you will receive a discharge, officially relieving you of qualifying debts and allowing you to make a fresh financial start.
Expert Legal Guidance for Your Bankruptcy Needs
At Troy Powell Law Firm, we understand that navigating the complex world of bankruptcy law can be overwhelming. With our team of skilled attorneys by your side, you can rest assured that your best interests will be represented throughout the conversion process.
As experts in bankruptcy law, we offer personalized advice and comprehensive legal services tailored to your unique circumstances. It is our mission to protect your rights and guide you towards a brighter financial future.
Contact Troy Powell Law Firm Today
If you find yourself contemplating the conversion from Chapter 13 to Chapter 7 bankruptcy, don't hesitate to reach out to the experienced team at Troy Powell Law Firm. We are ready to provide the knowledge, support, and guidance you need to make informed decisions for your financial well-being. Contact us today to schedule a consultation.
