Wednesday, January 1, 2014

I have 4 months left to pay on my chapter 13 Bankruptcy. My job is closing next month. How do I convert my case to a Chapter 7? And is there...

Question

I have 4 months left to pay on my chapter 13 Bankruptcy. My job is closing next month. How do I convert my case to a Chapter 7? And is there a fee to do this?



Answer

Depending on where you are, typically a motion to convert or a notice of conversion will work. You need to be extremely careful about conversions, though, because of the effect on any secured creditors, priority creditors, and assets. I strongly recommend hiring an attorney to assist with this. The Court charges a fee of $25 for the conversion last I checked.



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