Manchel
New Jersey
Bankruptcy Law

Toll Free: (866) 503-5655

Email:manchellaw@yahoo.com

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A debtor may wish to convert from a chapter 7 to a chapter 13 and visa versa, for numerous reasons. Various reasons why a debtor would want to convert from a chapter 7 to a chapter 13 include the following. After the filing, the trustee objects because the debtor does not meet the chapter 7 criteria. After the filing, the debtor becomes aware that he is not able to fully exempt property that the trustee will sell.

There are various reasons why a debtor would want to convert from a chapter 13 case to a chapter 7 case, that include the following. During a pending case, due to the change in circumstances, the debtor is no longer able to make trustee payments. The debtor decides that she no longer wants to save her house or car, through a chapter 13. A chapter 13 case which is about to be dismissed by the trustee, may be able to convert to a chapter 7 and obtain a discharge.

The case law with regard to whether a chapter 7 debtor has the right to convert from a chapter 7 to a chapter 13 is open and not settled. Typically, a debtor is permitted to convert to a chapter 13 case because he does not meet the chapter 7 criteria and wants to pay back a portion of the debt. Generally, if the chapter 7 trustee is interested in selling an asset, the debtor may convert and pay back the required debt to the creditors. However, under this scenario, if the debtor is unable to make the necessary monthly payment, the debtor will be required to convert back to a chapter 7 and allow the trustee to sell the asset.

If the case was previously converted from a chapter 13 to a chapter 7, the debtor may only convert a back to a chapter 13 a second time, with the permission from the court. This means that a second conversion is not permitted as of right.

Conversion from a Chapter 13 to a Chapter 7

As explained in our section about how a chapter 13 bankruptcy works, in general, a person may file for Chapter 13 bankruptcy protection for various reasons, which may include the following:

  • pay a portion of the unsecured debt through the bankruptcy plan due to the failure to meet the Chapter 7 criteria;
  • save the house or other property from foreclosure or repossession;
  • protect assets from the sale of a Chapter 7 trustee.

The debtor must still meet the income and expense chapter 13 criteria, at the time a case is converted to the chapter 13. Also, the debtor must meet the chapter 7 criteria at the time a case is converted to a chapter 7 as well.

Contact bankruptcy lawyer, Robert Manchel, Esq., for a free consultation.

 

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      Manchel
      New Jersey
      Bankruptcy Law

      This web site is designed to provide general information regarding the bankruptcy laws. The bankruptcy laws are complex and may be applied differently, in each case, depending on the particular facts. There may be numerous exceptions and variations for each law and rule. Do not rely on the information provided in this web site. If you are considering filing for bankruptcy protection, you should consult with an experienced NJ bankruptcy lawyer. We are a debt relief agency. We Help people file for bankruptcy relief under the bankruptcy code.

      Main Office
      1 Eves Dr., Suite 111
      Marlton, NJ. 08053
      (856) 797-1500
      Toll-Free: 866.503.5655

      Freehold Office:
      4400 Route 9 South, first fl.,
      Freehold, NJ. 07728
      (732) 462-1099

      Princeton Office:
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      Princeton, NJ. 08540
      (609) 919-0068

      East Brunswick Office:
      197 Route 18 South,
      South Tower, Suite 3000
      East Brunswick, NJ. 08816
      (732) 628-0300

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      Toms River, NJ 08753
      (732) 240-2300

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      • Home
      • Chapter 7 & Chapter 13 Info
        • Chapter 7
          • How Does a Chapter 7 Bankruptcy Work
          • NJ Chapter 7 Bankruptcy Process
          • Chapter 7 and Chapter 13 Required Documents and Information
        • Chapter 13
          • How Does a Chapter 13 Bankruptcy Work
          • NJ Chapter 13 Bankruptcy Process
          • Chapter 7 and Chapter 13 Required Documents and Information
        • Chapter 7 and 13 Differences
        • NJ Bankruptcy Info
        • How Bankruptcy Affects You
        • How Bankruptcy Helps
      • Avoid Foreclosure
        • Loan Modification
        • Mortgage Foreclosure Mediation
        • New Jersey State Courts and Procedure
      • About
        • NJ Bankruptcy Attorney Robert Manchel
      • Why Hire Us?
      • Q&A
        • FAQ’s
        • Articles
        • Resource Links
      • Contact Us
        • Office Locations