Are you in Chapter 13 bankruptcy proceedings in Florida and wondering if you can switch to Chapter 7? Loan Lawyers is here to help. Chapter 7 bankruptcy allows individuals to get a fresh start by liquidating assets to cover some debts and discharging other debts. Chapter 13 bankruptcy creates a plan where the debtor can repay all or part of the debt owed to creditors over three or five years. Once all payments are complete, the remaining debt can be discharged.
Contact Loan Lawyers for a free consultation to learn more about whether you can switch between bankruptcy chapters in Florida, when and how that might be beneficial, and what’s required.
Can You Convert Your Chapter 13 Bankruptcy to Chapter 7 in Florida?
It is possible to convert from Chapter 13 bankruptcy to Chapter 7. To know if this is true in your particular situation, you should consult a bankruptcy attorney who can determine whether you are eligible and discuss the pros and cons of switching.
For example, after you file for bankruptcy, you must wait a specific period before you can file again. The duration of the waiting period depends upon the type of bankruptcy you previously filed. If you have a prior bankruptcy, your attorney will tell you whether you’re outside the waiting period and could convert to a Chapter 7.
To convert, you must file a Notice of Conversion with the court and pay a conversion fee. An attorney can help you with this process.
Benefits of Switching Bankruptcy Chapters
Switching to Chapter 7 bankruptcy might be beneficial to you if:
- You cannot maintain the Chapter 13 bankruptcy payment plan.
- You have experienced a significant loss of income.
- You no longer wish to keep an asset that your Chapter 13 bankruptcy plan was designed to save.
Do You Qualify for Chapter 7 Bankruptcy?
Before deciding to convert to Chapter 7 bankruptcy, you must ensure you qualify. First, you must pass a means test demonstrating your income falls below Florida’s median family income for your household size. If your income exceeds that amount, you might still be able to qualify after a detailed analysis of your income and expenses.
When the Court Might Force You to Convert to Chapter 7 in Florida
The court could order you to convert to Chapter 7 bankruptcy “for cause.” If the court believes you are trying to manipulate the bankruptcy system, it could force you to enter Chapter 7 bankruptcy and liquidate nonexempt assets to pay back creditors. For example, this may happen if it appears that you are hiding assets or lying on forms.
Contact Loan Lawyers Today for Help Switching Bankruptcy Chapters
If you are having trouble keeping up with a Chapter 13 bankruptcy repayment plan, Loan Lawyers can help you explore whether converting to Chapter 7 bankruptcy would be a good option for you. Our bankruptcy attorneys aim to find the best financial solution for each client and will never pressure you. Contact us today to schedule a free consultation.
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Loan Lawyers is made up of experienced consumer rights attorneys who use every available resource to develop comprehensive debt solution strategies. Our goal is to take on those burdens, resolve those problems, and allow our clients to sleep soundly knowing they are on the path to a better future.
