You have the right to convert your bankruptcy case from a Chapter 13 to a Chapter 7 unless you have received a Chapter 7 discharge within the last eight years. You can file a motion with the bankruptcy court to have it changed. A creditor or trustee can also file a motion to have your case converted.
Sometimes this is necessary if you find you are unable to make the payments, or you have lost your job or taken a pay cut.
All the money you have paid to the trustee that has not been paid to your creditors will be returned to you minus the administrative fees when you convert your case.
Some courts require you to file an entirely new set of paperwork, even if all the information is the same from the Chapter 13 case. Often the paperwork is just included in your Chapter 7 case. Within 30 days of converting, you must file a “Statement of Intention” telling the court what you plan on doing with your secured debts. You will also have to attend a new meeting of the creditors.
Any debts you incurred after filing Chapter 13 can be included for discharge in your Chapter 7 case. Your creditors will also have to file new claims if your Chapter 13 was dismissed.
If you have questions about which bankruptcy chapter you should file, contact a Cincinnati bankruptcy attorney to find out how you can get financial relief.