Converting from a Chapter 13 to a Chapter 7

Aurora Illinois Bankruptcy Lawyers & Attorneys

Jesse Barrientes: Well, let me ask you. Suppose I did a Chapter 13 and after a couple years into it we had a change in circumstances and for whatever reason it got dismissed. But now I'm in a situation where I can do a Chapter 7. Would I still be able to file that because I just filed a Chapter 13 and it was just dismissed?

David Siegel: Yes. You can always do a Chapter 7 as long as you haven't had a prior Chapter 7 within 8 years. So a lot of times circumstances change. Clients are in a Chapter 13. Things go south for whatever reason. They wind up converting the case to a Chapter 7 and getting that fresh start.

Jesse Barrientes: When you convert the case to a Chapter 7 what happens to all the monies that were paid before?

David Siegel: Whatever's been paid out is already gone to the creditors.

Jesse Barrientes: And that's it.

David Siegel: That's all they would receive except for non-dischargeable debt like student loans, parking tickets, child support, recent taxes. Those debts are gonna stick around. So even converting to an Aurora Chapter 7 bankruptcy case will not take care of non-dischargeable debts but you do get a great benefit by eliminating the dischargeable debts like medical bills, credit cards, personal loans.

Jesse Barrientes: Right. _____ will take care of that.

David Siegel: And utility bills � past due utilities.

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See Also:

Chapter 7

What is Chapter 7?

Chapter 7 income guidelines

Chapter 7 and secured debts

Chapter 7 and unsecured debts

Misconceptions about Chapter 7

Chapter 7 car exemptions

Chapter 7 house exemptions