A bankruptcy filing does not always have to remain under the initial chapter you selected. Changes in your income or concerns about your property can make another chapter more suitable. Federal law allows some Chapter 7 bankruptcy cases to convert to Chapter 13 and vice versa.
At Werner, Hoffman, Greig & Garcia, we can help you evaluate whether conversion is available and whether it supports your financial goals. Our trusted bankruptcy attorneys can also explain how conversion may affect the bankruptcy estate and the path toward discharge. We can review your filing history and your current finances before you decide whether to change chapters.
Can You Convert Chapter 7 to Chapter 13?
Under 11 U.S.C. § 706, you may have a right to change a Chapter 7 bankruptcy case to Chapter 13 if your case has not converted previously and if you qualify for Chapter 13, which generally requires regular income and uses a repayment plan that usually lasts three to five years.
Conversion can make sense when your circumstances change after filing. For example, an increase in your income may make a repayment plan workable. A Chapter 13 case can also give you a structured way to address secured obligations while keeping your property, subject to the Bankruptcy Code and court approval.
Can You Convert Chapter 13 to Chapter 7?
Under 11 U.S.C. § 1307, you can generally convert a Chapter 13 case to Chapter 7 bankruptcy at any time. This option may become important if your income falls and continuing your plan payments is no longer realistic.
Chapter 7 does not use a repayment plan. Instead, a trustee may administer nonexempt property for creditors. Florida law provides exemptions that may protect your qualifying property, so the effect of conversion depends on the facts of your case.
What Changes After Bankruptcy Conversion?
Conversion changes the chapter governing your case, but it does not simply restart the bankruptcy. 11 U.S.C. § 348 addresses the legal effect of conversion, including the treatment of the case date and estate.
Since conversion from Chapter 7 bankruptcy to Chapter 13 can affect your property and repayment obligations, the timing must be correct. Our skilled attorneys can help you avoid unintended consequences by reviewing your case before filing a notice or motion.
Call Our Team at Werner, Hoffman, Greig & Garcia About Bankruptcy Chapter Conversion
Changing from Chapter 7 bankruptcy to Chapter 13, or the other way around, is possible, but eligibility requirements and consequences vary. At Werner, Hoffman, Greig & Garcia, we can review your filing and explain the available options. Schedule a free initial consultation to discuss whether converting your bankruptcy case is appropriate for your situation.
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About the Author
Adam Werner is a partner and practicing attorney at WHG. He specializes in personal injury cases, workers’ compensation claims, and veteran disability benefits. He routinely writes about personal injury and workers comp topics for the Werner, Hoffman, Greig & Garcia blog.
