Conversion
Free Initial Phone Consultations
Chapter 7 starting at $999, plus filing fees and costs.
Chapter 13 starting at $2,500, plus filing fees and costs.
What is a conversion?
A conversion is a change of bankruptcy case from one chapter to another. A bankruptcy case may be converted from one chapter to another either on request of the debtor or on request of a creditor, a trustee, or other party in interest. The reasons for conversion from one chapter to another as well as the conversion rules vary based on the chapter the debtor currently is in and the chapter to which the debtor is seeking to convert.
Conversion from Chapter 7 to Chapter 13
Chapter 7 debtors typically convert to Chapter 13 either because their income is too high to pass the “Means Test” or because Chapter 13 bankruptcy becomes a better fit for their financial situation.
A Chapter 7 debtor has a one-time right to convert from a liquidation Chapter 7 case to a re-organization Chapter 13 case, assuming the case originated under Chapter 7 and the debtor is eligible to file under Chapter 13. However, if the Chapter 7 debtor wants to convert to Chapter 13 after an unsuccessful attempt to hide the assets from the trustee, the court may deny conversion based on the debtor’s bad faith.
Conversion from Chapter 13 to Chapter 7
Chapter 13 debtors choose to convert to Chapter 7 generally because they are no longer able to make the Chapter 13 plan payments or no longer want to keep certain property. A Chapter 13 debtor has an absolute right to convert to Chapter 7 at any time, if the debtor has not received a Chapter 7 discharge within the last 8 years and the debtor is eligible to file under Chapter 7. “Means Test”.
In a converted case, the date of the original bankruptcy filing determines what property is included in the bankruptcy estate, but the date of conversion determines what debts can be discharged. Thus, if the debtor converts from Chapter 13 to Chapter 7, any property acquired post-petition and pre-conversion will generally not be included in the bankruptcy estate, but post-petition and pre-conversion debts can be discharged.
How can we help?
Bankruptcy requires careful preparation and planning. Timing the bankruptcy filing property can help avoid a Chapter 7 dismissal or a conversion from Chapter 7 to Chapter 13 if the debtor does not pass the “means test”, which determines the debtor’s eligibility for bankruptcy. The debtor’s chances of successful bankruptcy are better with legal representation than without it, whether it is Chapter 7 or Chapter 13. We thoroughly review and evaluate each case to determine whether bankruptcy is appropriate, whether it is the best option, and whether it is filed at the right time.
At Anna Handy Law Firm, P.A., we are acutely aware of the financial strain of our clients. We do not charge you for the initial phone consultation. We do not push you to file bankruptcy to get a retainer. We don’t judge – we find solutions. We give you honest advice about your options and rights, including the “doing nothing” approach. As such, we offer very affordable bankruptcy fees. We make our fees competitive and in certain cases, we offer payment plans to address each case individually as each case has a different set of circumstances.
If you are overburdened by your debts, being sued or harassed by creditors, or subject to wage garnishment, do not hesitate to call us now for a free initial phone consultation. The attorney’s direct business cell phone number is (386) 248-3000. You may also email us at [email protected].