Chapter 13 to Chapter 7 Bankruptcy Conversion
"You cannot watch the evening news on television without hearing the term bankruptcy. When most people hear the term bankruptcy, chapter 7 comes to mind. Individuals prefer to file Chapter 7 because it is quick and eliminates all unsecured debt, leaving them essentially debt-free. Some Chapter 7 filers believe everything is proceeding efficiently until the trustee contacts their bankruptcy attorney, believing their case to be an abuse of the system. The U.S. trustee can now convert your case to Chapter 13 if he or she believes you are capable of repaying at least a portion of your debt. After all of their expenses, people in this situation typically do not have enough money for a Chapter 13 bankruptcy. Some debtors earn a little too much to qualify for the means test, but they are attempting to file Chapter 7 because their living expenses are so high that they have nothing left over from their income after paying all of their bills, excluding credit card bills. Your bankruptcy attorney can typically successfully defend against this motion.Chapter 7 eligibility is based exclusively on the filing individual's income, in contrast to Chapter 13 eligibility, which is based solely on assets. Essentially anyone can qualify for Chapter 13 bankruptcy. This form of bankruptcy allows the debtor to repay their creditors over a period of three to five years. Using the individual's income and expenses, the trustee will devise a reasonable payment schedule. The ideal time to file for Chapter 13 bankruptcy is when you are attempting to protect a piece of real estate with substantial equity. As with all other chapters of bankruptcy, Chapter 13 has the automatic stay that halts foreclosure and allows the debtor to make up on past due payments.In today's insane economy, no one is safe from losing their employment or experiencing a financial catastrophe. If the debtor has difficulty making payments during a Chapter 13 bankruptcy, the administrator may dismiss the case. You can allow the court to dismiss your case, but you will be left with a significant amount of past-due debt payments. In this circumstance, once the automatic halt is lifted, the creditors will pursue you with vigor. The superior option is to convert your Chapter 13 bankruptcy to a Chapter 7 filing. Contact your bankruptcy attorney and have them file with the court a notice of conversion. If you qualify for Chapter 7, the procedure should be straightforward.After converting your Chapter 13 bankruptcy to Chapter 7, any funds held by the trustee should be returned, less any administrative fees. Frequently, Chapter 13 debtors have their wages garnished to cover their payment plans. It is imperative that you have your bankruptcy attorney promptly stop this, as it typically takes at least one pay period to get it stopped. If there are any overpayments, they should also be returned to you. The conversion will result in the appointment of a Chapter 7 bankruptcy trustee and the scheduling of a new 341 meeting. Your bankruptcy attorney will need to file amended schedules to include any new debts. After your case is converted, you will have a 341 meeting within four to six weeks, and you should be discharged approximately two months later. The best aspect is that you will no longer have a payment plan, and you should be debt-free after the discharge. You may lose some of the property you are attempting to protect by pursuing Chapter 13 bankruptcy. As property values continue to decline, it is possible that you do not have as much equity as you believed. This is something you should discuss with your bankruptcy attorney so you can choose the path that will lead you to financial liberation and debt-free living. " - https://www.affordablecebu.com/
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"Chapter 13 to Chapter 7 Bankruptcy Conversion" was written by Mary under the Finance / Wealth category. It has been read 182 times and generated 0 comments. The article was created on 01 June 2023 and updated on 01 June 2023.
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