How Long Does it Take to Convert a Chapter 13 to a Chapter 7 Bankruptcy?

File for Bankruptcy How Long Does it Take to Convert a Chapter 13 to a Chapter 7 Bankruptcy?

How Long Does it Take to Convert a Chapter 13 to a Chapter 7 Bankruptcy?

Bankruptcy brings with it many questions. Aside from needing to know precisely what each chapter means for you, you may also be considering conversion. How long does it take to convert a chapter 13 to a chapter 7 bankruptcy? What does the process entail?

DoNotPay helps you get these questions and more answered. The goal is to provide you with the details you need to make an informed decision about your financial options. We'll then assist you with the filing process if you need it.

Defining Chapter 13 Bankruptcy

A Wage Earner's Bankruptcy is the name commonly used for chapter 13. You have to be earning a wage and have a steady income if you hope to use this option. Without a large enough income to handle your regular monthly expenses plus your repayment plan, you won't be able to handle this version.

If you want to protect your assets and avoid having to sell them to pay off your debts, then you must meet all of the qualifications for chapter 13. Which are:

  1. Not owing more than the allotted amount for secured loans (typically surpassing somewhere around $1,180,000)
  2. Not owing more than the allotted amount for unsecured loans (typically surpassing somewhere around $394,000)
  3. Not being behind on taxes: You must have filed for the past 4 years in a row
  4. Not having a prior bankruptcy on your report within the last 8 years

More About Secured and Unsecured Loans

Secured LoansExample: Mortgages/Car PaymentsThey are important monthly expenses that you need to handle.
Unsecured LoansExample: Credit Cards/Personal LoansThese are extra monthly expenses that you chose to accrue.

Defining Chapter 7 Bankruptcy

Liquidation Bankruptcy is typically the name for chapter 7. A trustee is appointed to handle your case in which they sell off your assets and use the earnings to pay off your debt collectors. If you do not qualify for a chapter 13, then this option may be your next best bet. It may also be useful if you can no longer afford to make all of the regular monthly payments you were handling on top of tackling a payment plan for your debts.

While a chapter 13 bankruptcy only stays on your credit report for up to 7 years, a chapter 7 may be visible for as long as 10. Taking a hit to your credit score is just one of the downsides of bankruptcy.

What is the Conversion Process Like?

You may decide to make a conversion between chapter 13 and chapter 7 on your own. In many cases, though, the court is the one who determines a conversion process is necessary because the repayment plan is not being followed. In either case, the process entails:

  1. You must update your reports of income and debts.
  2. You must file new paperwork, including the Statement of Intention for Individuals Filing Under Chapter 7.
  3. Allow creditors time to file a new Proof of Claims.
  4. Property exemptions get decided based on what you owned at the time of the original chapter 13 filing.
  5. File a Notice of Conversion and pay the $25 filing fee.
  6. Get a new trustee assigned to your case.
  7. Attend a 341 meeting of creditors

How Long Does it Take?

Once you file your Notice of Conversion, you are typically expected to wait 30 days before attending a 341 meeting. Most cases are then handled and closed within 4 months. It may take up to 90 days after your meeting to receive papers in the mail indicating the fact that your dischargeable debts were removed.

DoNotPay Can Assist You With the Filing Process

Trying to make sure you've compiled all of the right details for your paperwork can be tiresome and time-consuming. Answer a few questions with DoNotPay and let us handle the rest for you. The 5-step process makes for a smoother transition.

  1. Search for File for Bankruptcy on DoNotPay.

     

  2. Put together a list of your debts, expenses, and assets. If you need help accessing information like your credit report, DoNotPay can help you get your report.

     

  3. Let DoNotPay walk you through your bankruptcy options and help you determine whether a Chapter 7, Chapter 12, or Chapter 13 bankruptcy is right for you.

     

  4. DoNotPay will then help find the best credit counseling course near you, which you need to complete before filing your bankruptcy forms.

     

  5. Lastly, DoNotPay will gather all of the forms you need (including available fee waivers) and help you locate your nearest bankruptcy court. All you have to do is complete the required forms, prepare your filing fee, and file the application with your local court.

     

Additional Questions DoNotPay Helps You Answer About Bankruptcy

How long does it take to convert a chapter 13 to a chapter 7 is most likely not your only bankruptcy question. DoNotPay can help you answer any questions you may have regarding bankruptcy, the filing process, and any financial concerns.

Other Questions DoNotPay Answers - Not Bankruptcy Related

You're bound to have other questions that you need help answering. They won't have anything to do with bankruptcy at all, and that's okay. DoNotPay is here to help with any of your needs, be it:

DoNotPay takes all of your concerns seriously and will help you as promptly as possible. 

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