On Monday, we discussed the bankruptcy case of Idaho State Rep. Phil Hart-R, who may have to convert his Chapter 13 bankruptcy to a Chapter 7 bankruptcy because his debts are too high.
A bankruptcy conversion is not an uncommon occurrence. In Hart’s case, he discovered that he was carrying too much debt to successfully complete the repayment plan associated with his Chapter 13 bankruptcy. Sometimes people discover their financial situations have changed and they can no longer make payments toward the repayment plan they agreed to during a Chapter 13 bankruptcy.
If you choose to convert your Chapter 13 bankruptcy to a Chapter 7 bankruptcy, you will need to meet eligibility guidelines, including passing the bankruptcy means test, which determines your income and expenses. You will also need to make sure you have not filed for a Chapter 7 bankruptcy during the last eight years. Occasionally, bankruptcy courts will force debtors into a ‘forced conversion’, and convert their Chapter 13 bankruptcy to a Chapter 7 bankruptcy when a repayment plan cannot be met.
Sometimes, people choose to convert because they’re no longer interested in keeping the properties they saved under their Chapter 13 bankruptcy plans. If you have questions about converting a bankruptcy case, you should speak to an attorney who will be able to determine if one is possible.
Converting a bankruptcy case is nothing to be embarrassed about—many people find the benefits of Chapter 7 bankruptcy to be great. Chapter 7 allows debtors to discharge unsecured debts like credit card debt, medical bills and some judgments.
On Friday, we will discuss fraudulent transactions. If you need relief from things like credit card debt and medical bills, bankruptcy can be a solution. Our Washington DC and Maryland bankruptcy attorney can help you with a free consultation by filling out the contact form on this website or by calling (202) 888-8454 to schedule an appointment. We can offer you the best solution for whatever your debt issues may be.
Law Firm of Kevin D. Judd– Maryland and Washington DC bankruptcy lawyer