Converting Chapter 7 to Chapter 13
Aurora Illinois Bankruptcy Lawyers & Attorneys
Jesse Barrientes: How about the other way? Let's say more of a happy situation. Let's say hey, we're in a Chapter 7 here, and we're struggling, and all of the sudden, hey, you know what, that job came through, and now I'm making more money. Not enough to pay everything off in a lump sum here, but enough to be able to pay certainly for the secured debt that I have, and something on the unsecured.
David Siegel: You can ask for permission to turn a Chapter 7 into a Chapter 13. Typically, though, you wouldn't be doing that on your own volition. The U.S. Trustees Office, the Chapter 7 trustee would basically be coming in and telling the court that you have the ability to reorganize under Chapter 13. You make too much money, you have too much of a surplus, and they're going to petition the court to have your case either dismissed, or give you the option to convert it to Chapter 13. So it's almost not a voluntary thing, almost never. It's usually pressure from the U.S. Trustees Office oversees all the bankruptcy procedures, telling you, or your client, that you either need to convert to Chapter 13, or they're going to bring a motion to dismiss the case for abuse.
Jesse Barrientes: Because why wouldn't I just want to get everything discharged, right? That's the idea. That's why I wouldn't want to convert it from a 7 to a 13.
David Siegel: Right. This is why you need to see an Aurora bankruptcy attorney that handles Chapter 7 and Chapter 13 bankruptcies because they're going to meet with you, interview you, look at your income, your expenses, your assets, your liabilities, and they're going to lay it out for you as to what the court will likely do. You don't want to do a Chapter 7 if you have surplus income. The court's going to throw it out.
Jesse Barrientes: Sure.
David Siegel: You also don't want to do a Chapter 13 if you don't have the ability to reorganize because then you're just wasting everybody's time. If there's not funds to make the payments, it's going to blow up and blow up quickly.
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See Also:
See Also:
Chapter 7
Misconceptions about Chapter 7
Life after Chapter 7 bankruptcy
Privacy is protected in bankruptcy
Household income qualifications
Converting Chapter 13 to Chapter 7
Converting Chapter 7 to Chapter 13
Chapter 13
Using Chapter 13 to save a home
Choosing Chapter 13 versus Chapter 7
Debt consolidation & late fees
Administrative fees & the bankruptcy trustee
Chapter 13 payment plan dismissal
