How do you convert a chapter 13 to a chapter 7 bankruptcy?

Answer 1

• There are two primary types of personal bankruptcy: Chapter 13 and Chapter 7. Each must be filed in federal bankruptcy court. As of 2000, the fees for seeking bankruptcy relief are $160: a filing fee of $130 and an administrative fee of $30. Attorney fees are additional.
• Chapter 13 allows persons with a steady income to keep property, like a mortgaged house or a car, that they otherwise might lose. In Chapter 13, the court approves a repayment plan that allows you to use your future income to pay off a default during a three-to-five-year period, rather than surrender any property. After you have made all payments under the plan, you receive a discharge of your debts.
• Known as straight bankruptcy, Chapter 7 involves liquidation of all assets that are not exempt. Exempt property may include automobiles, work-related tools and basic household furnishings. Some of your property may be sold by a court-appointed official � a trustee � or turned over to your creditors. You can receive a discharge of your debts through Chapter 7 only once every six years.
• The best books on self-filing are listed under the related links.
• You can and should do the research on filing your own Chapter 7 before the present congress steals it out from under you. These books are also available at most public libraries, and Chapter 7 courts are very friendly to self-filed cases...for now.
• The filing fee for Chapter 7 is now $209, and the filing fee for Chapter 13 is $194 (as of today's date, 4/4/05).
• The most striking difference is that a Chapter 7 lasts about 3 1/2 months, during which time you make no payments to the Court (and to qualify for Chapter 7 you must show that you have no money left over each month to make payments), whereas a Chapter 13 lasts from 3 to 5 years, and during that time you make monthly payments to the Court (because you have more income than expenses). This simplistic explanation makes it sound like everyone would want to file Chapter 7 instead of Chapter 13, but this isn't true; Chapter 13 has several complex advantages over Chapter 7, such as you can structure your Chapter 13 to let you keep property that the Court would sell in a Chapter 7, and you can get rid of certain types of debts that cannot be discharged by a Chapter 7, to name a couple. But, as of today's date (4/4/05), the U.S. House of Representatives is considering new bankruptcy reform legislation (already passed in the Senate), which if they pass it, will go to the President for approval. If it ultimately becomes law, the differences between Chapter 7 and Chapter 13 will change. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person.
• A chapter 7 is total liquidation of nonexempt assets. A Chapter 13 is a "debt consolidation", in which the debtor does not relinquish any property but is required to make a specified monthly payment to the trustee. The trustee will then pay the creditors according to priority. A 13 is generally 3-5 years. The basic rule is the creditors must receive a like amount as they would have if the debtor filed a 7. Secured and unsecured debts are treated differently in each bankruptcy.
• The short version, a chapter seven is a full liquidation bankruptcy in which the petitioner relinquishes all nonexempt property to be sold to pay creditors. This generally does not include the primary residence and one vehicle, it depends on individual circumstances. A chapter 13 is a consolidation bankruptcy in which the petitioner agrees to a payment plan which will be overseen by the assigned trustee. The petitioner keeps all their property but must repay within 3-5 years at least the same amount the creditors would have received under a chapter 7.
• Chapter 7 bankruptcy is essentially a liquidation. In a Chapter 7, your assets may be recovered to pay off some of your debt (car, furniture, home, etc, depending on state laws) A Chapter 13 bankruptcy is a consolidation. The court decides how much you can afford to pay back and you will be set up on a payment plan for several years (up to 5, I believe). The con of a Chapter 13 bankruptcy is that it is a long process. The pro is that you get to retain all of your assets.
• A Chapter 7 is a total liquidation. If you are qualified, depending on your assets and your state's exemptions, it may be potential to wipe out your unsecured debts (credit cards, medical bills, etc.) with little or no other troubles. If you have secured debts (mortgage, car payments, etc.) you would either have to agree to continue to pay these or allow the lenders to retake the collateral. Current law requires an income Means Test, whereby your total household income is determined, and then compared to the median for your state and household size. If you fall at or below the median you can file Chapter 7, if not you can only file Chapter 13. Chapter 13 is a repayment plan. If your income is below the median, you can file a 3 year plan - all your income except for acceptable deductions for living expenses goes int the Chapter 13 plan which goes to your creditors. If the court has confirmed the plan, the creditors must accept that, even if they get much less than full payment. At the end of the plan, your unsecured debts are discharged.
• If you are above the median income test, you can only suggest a 5 year plan.
• Chapter 7 will do not anything to save your home from foreclosure by a first mortgage holder. A Chapter 13 plan can stop foreclosure.
• Chapter 7 is a complete debt wipe-out. All debts that are eligible under bankruptcy laws (Child support & student loans are some debts that BK CANNOT wipe out) are wiped out and you will no longer be obligated to pay anything back.
• A Chapter 13 is not a complete debt wipe-out. You negotiate with each creditor to change the terms of the debt so you can repay them (i.e. cancel all interest, settle for a percentage of the principal balance, etc.). One you have established your repayment plan to each debtor, the BK will not be discharged until you pay back what you agrees to. In other words, you will still have to pay back each creditor, but not the full amount due.

Answer 2

Before the new bankrupcy laws took affect it was a fairly simple matter to conver from a "13" to a "7"; now it is extremely difficult to have such action approved by the bankruptcy court. The best options are to consult with the attorney who handled the BK or contact the chapter 13 trustee for assistance.

Answer 3

You can: 1) Hire a lawyer 2) File without any assistance by finding the right forms and regulations for your state and district you live in...or 3) Hire a bankruptcy petition preparer to simply prepare your petition for you!
Bankruptcy, in fact any legal process, any expert process..is not something one should do for themselves...even experts and well experienced or skilled people don't...and as you can ask a question like this...it just goes to show your likely entirely incompetent to do so even if there was an answer for "how" (that obviously doesn't involve virtually all the 10,000s of pages of legal writings and court operations that may or may not be needed, and change, for each case! There are going to be many, many, many more complicated questions to be answered, actions that must be done to get the best result, specific requirements. documents, etc....to answer fully and accurately...all much more difficult than figuring out a logical place to start a "how to...do a legal thing"...is the legal courthouse...in this case one of those in the entire court system that deals only with this type of case...The US Federal Bankruptcy Court for your District.

Addressing the underlying part of your question - it is realistic to think everyone filing BK is in a dire financial position already without easy ways to pay for things, especially attorneys. That said, many lawyers keep their fees very reasonable for this, and there are provisions to assure administrative costs involved, like attorneys, are able to be paid as part of the process. Before you go any further, you should consult at least 2 attornies who practice in this field to get more info. These initial consults are almost always available for free.

You can always file and administer it yourself, with only modest filing & court fee's, that are even sometimes able to be waived if you can meet certain qualifications, and again, file everything properly, etc. However, any court process is complex and can have any number of special issues and possible results. To someone who is unfamilar with it, and especially someone who may not be very financially conversant and able to easily understand the things being asked and where/how to get required documentation, etc. To expect to get the best result or even hoped for one, (in fact as seen from many of the Qs and beliefs expressed in Qs here, to not make matters even worse...even criminally so, or find that something was missed that becomes a problem years later), is simply unrealistic.

I am not one, and may not particularly like them, but something as important as this to your future (not some purchase just because you want it), is exactly why and when an attorney (or expertise) is needed. As you look to get a fresh start and handle financial things differently, the purchase of expertise to accomplish it is not the time or place to DIY.
== The Steps For Filing A Chapter 7 Bankruptcy: 1) You meet with an attorney (or can self file, which probably isn't recommended, especially if your starting with having to ask here. However, perhaps any of the "do it yourself" legal kits would be a viable alternative if you really want to go it alone.) 2) You submit a list of creditors, with addresses, types of debt and amounts owed. You'll also answer questions and provide information about your income and assets. 3) If after review you decide to go ahead and file, and determine which Chapter is best, prepare and sign all of the paperwork. 4) The attorney's office, or you, files the case. (Legal cases and procedures are exacting and frequently require lots of specific info., especially for someone not experineced in it). 5) You will attend a First Meeting of Creditors (341 meeting) where you will be asked questions about your case. 6) You will start to receive correspondence about the progress and may need to respond or instructions in case you have to reappear. Sometimes if you are reaffirming on a debt (for instance, keeping your car in a Chapter 7 and continuing to pay on it) you will be required to attend a Reaffirmation hearing. 7) If all is well, the debt will be discharged and the case will be closed. Many attorneys will give you a free consultation, but it is advisable to call and ask them instead of assuming that you won't be charged for the first meeting. The most important thing to keep in mind if you do file bankruptcy is that it is vital to keep your credit clean and your bills paid on time once the case has been closed and the debts discharged. I'd suggest that you consult with a local attorney for all the facts, because only an attorney can advise you on all of the details of the bankruptcy process and whether it is a viable option for you.
You get the forms and instructions and read them carefully and understand everything. All the forms are available free from the bankruptcy court website for your jurisdiction. Some states have only one bankruptcy court for the state, some have two or three. Google your state and US Bankruptcy court.

Read the rules, which you will also find on the website.

Complete the forms. Most people do not understand exemptions and do not claim them, or do not claim them properly. The second biggest mistake self-filers make is to not complete the Statement of Intention, which only matters if you have a motor vehicle loan or a mortgage or home equity loan. The third mistake is not listing all - ALL - creditors and preparing a creditor mailing list in proper form.

Forms and instructions are also available at several websites, usually belonging to lawyers but may not be free.

Answer 4

Yes, it is possible to convert a Chapter 13 bankruptcy case to a Chapter 7 case. This is known as a "Chapter 13 conversion." To qualify for a Chapter 7 bankruptcy, the debtor must pass the means test and meet other eligibility requirements. Additionally, the debtor must not have received a discharge in a prior Chapter 7 case within certain timeframes. A bankruptcy attorney can help you determine if you are eligible for a Chapter 7 conversion and guide you through the process.

Answer 5

You can convert from Chapter 13 to chapter 7 by having your attorney file the proper paper work within the courts, but you must sign them additionally approving this change.

Answer 6

can i convert my chapter 13 to a chapter 7 if i filed a chapter 7 in 2005

Answer 7

Answer 8

Oh..good question I forgot.

Answer 9

How do u start filling bank ruptcy