In some bankruptcy cases in Aurora, you may have to or wish to convert your Chapter 13 bankruptcy to a Chapter 7 bankruptcy. There are several reasons why this conversion could take place, and it is always wise to consult the best bankruptcy lawyer to be sure you understand every part of the conversion process. Additionally, you need a bankruptcy attorney to make sure you qualify for a Chapter 7 bankruptcy and to inform you of what will happen in a new Chapter 7 bankruptcy filing.
Why Convert a Chapter 13 Bankruptcy to Chapter 7 Bankruptcy in Littleton?
In Littleton, there may be several reasons you would like to or need to convert a Chapter 13 bankruptcy to a Chapter 7. These reasons can include that you can no longer afford your Chapter 13 bankruptcy plan payments, or that you initially filed Chapter 13 bankruptcy to keep certain property but you no longer want that property. For example, you may no longer wish to keep your home or car. You are eligible to convert your Chapter 13 bankruptcy to a Chapter 7 bankruptcy as long as you have not received a bankruptcy discharge within 8 years.
Qualifying for a Centennial Chapter 7 Bankruptcy: What to Expect in a New Chapter 7 Bankruptcy Filing
If you choose to convert a Chapter 13 bankruptcy to a Chapter 7, you may need to take the means test. A means test determines whether your income qualifies you to file a Chapter 7 bankruptcy. If you originally filed a Chapter 13 because you did not pass the means test, your financial situation may have significantly changed so you can pass the means test now. If you qualify for converting a Chapter 13 to a Chapter 7, you will have to attend a new creditor’s meeting (341 hearing). You must also file additional information and fix certain bankruptcy schedules, to show the court your financial situation has changed. If you wish to/have to convert to a Chapter 7 because you can no longer afford the plan payments, the bankruptcy court will have to see proof of this. For other reasons you may choose to convert to a Chapter 7, you may need to file a Statement of Intention bankruptcy form to communicate how you plan to handle secured debt. As you can see, there is much to be considered before converting to a Chapter 7 bankruptcy, so always consult a knowledgeable bankruptcy lawyer Barry Arrington for assistance.
Lone Tree Chapter 7 and Chapter 13 Bankruptcy Lawyer: Call Barry Arrington Today
Converting a Chapter 13 bankruptcy to a Chapter 7 bankruptcy can be confusing and time-consuming. To better understand whether you can convert your Chapter 13 bankruptcy case to a Chapter 7, and to know what to expect if you qualify for a Chapter 7 bankruptcy, call bankruptcy lawyer Barry Arrington today. Barry will sit down with you in a free initial consultation, discuss your financial situation in more detail and develop a plan for you going forward.