You can easily convert from Chapter 7 bankruptcy to Chapter 13 in most courts. In many courts you are absolutely entitled to convert under the Bankruptcy Code, even if one of your creditors or the trustee objects. The author briefs the process of converting From Chapter 7 to Chapter 13 Bankruptcy.
It may happen that after filing for Chapter 7, you realize that you have underestimated your income or you have mortgage arrears that you wish to repay in order to save your home from foreclosure, which is not allowed in Chapter 7. There can be number of reasons for the dismissal of your Chapter 7 case. So, at any point of time, you may want to convert from Chapter 7 to Chapter 13.
New York Bankruptcy Attorney, John M. Crane1 briefs about the exempted property saying, “Certain types of personal property is classified as exempt under the Bankruptcy Code. This means that you get to keep this property even after your debts are discharged. In New York, State Law provides for specific exemptions including, among others:(A) cash, checking or savings accounts, U.S. Savings Bond, stocks, and other marketable securities, and tax refunds up to a maximum total of $2,500.00; (B) equity in a motor vehicle up to $2,400.00; (C) basic wearing apparel; (D) $50,000.00 of the equity in your home, co-op or condo; (E) social security benefits; (F) household furnishing and certain appliances; (G) IRA, 401K and other qualified retirement accounts.” (Ref: John M. Crane, P.C., http://www.johncranebankruptcy.com/bankruptcy )
You can easily convert from Chapter 7 bankruptcy to Chapter 13 in most courts. In many courts you are absolutely entitled to convert under the Bankruptcy Code, even if one of your creditors or the trustee objects. Since you have a one-time right to convert, normally your requests are approved by the court unless there is evidence of bad faith or you are otherwise ineligible to file for Chapter 13 bankruptcy.
To convert your case from Chapter7 to Chapter 13, you will need to do following:
- You will need to file a motion asking for the court's permission.
- In the motion, you need to tell the court the reason for the conversion and you have to prove that you can afford to be in a Chapter 13 bankruptcy.
- Send the motion to your creditors, the trustee as well as any other interested party.
- You might have to attend the hearing, but if nobody objects to your motion, some courts will simply grant your request without a hearing.
Many courts want you to follow some additional local rules. So, try to go through the local rules or consult with an attorney familiar with your court’s procedures.
Disclaimer: The contents of this page are general in nature. Please use your discretion while following them. The author does not guarantee legal validity of the tips contained herein.
John M. Crane: John M. Crane, P.C. has been licensed since 1997 and is a member of the National Association of Consumer Bankruptcy Attorneys. John M. Crane, P.C. is a full-service law office with a practice focused on Foreclosure Defense and Consumer Bankruptcy. The offices of John M. Crane, P.C. are located at PortChester, Queens, White Plains and New York. For further information, contact John M. Crane, P.C. 212-571-1898, 718-509-6542, 914-380-4209, 914-481-3450. His main office is located at 342 North Main Street, PortChester, NY 10573.You can visit the website http://www.johncranebankruptcy.com/.
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