When you file for Chapter 7 bankruptcy, you do it to wipe out all your debt as quickly as possible. However, certain things might occur which could make you realize that filing for Chapter 7 bankruptcy wasn’t the best decision. This may make you think that filing for Chapter 13 bankruptcy would have been the better choice. Fortunately, converting your Chapter 7 Bankruptcy to Chapter 13 can be an option.
Converting your Chapter 7 bankruptcy to Chapter 13 would require excellent legal services. Reaching out to a Kansas City bankruptcy attorney from Jeppson Law Office for assistance will give you access to people who know exactly how to convert Chapter 7 to Chapter 13 bankruptcy.
Give our law firm a call today for a FREE face-to-face consultation with a Kansas City Bankruptcy attorney who can help you live a life free of debt!
Why Do I Need a Bankruptcy Attorney in Missouri?
Most individuals trying to attain debt relief will do anything to be financially free again. When getting information on how to convert Chapter 7 to Chapter 13 bankruptcy, it is important that you get it for a bankruptcy attorney who does the following:
- Sets realistic expectations for every client, particularly with how overwhelming and confusing the bankruptcy proceedings can be
- Makes sure that the bankruptcy process is properly streamlined as much as possible
- Does everything to lessen the stress over finances while seeing to it that your legal rights are protected
- Works hard to strengthen each client’s financial future by helping to overcome setbacks
If you want to know how to convert your Chapter 7 bankruptcy to Chapter 13 and how to get your finances back on the right track, reach out to our Kansas City bankruptcy attorney today!
What is Chapter 7 Bankruptcy?
Also called liquidation, Chapter 7 bankruptcy is where a bankruptcy trustee gathers and sells some or most of your assets not protected by Missouri bankruptcy exemptions. The funds raised during the liquidation process will be used to pay off your debt. Filing Chapter 7 successfully will take effect for three to six months.
Knowing which of your property can be exempted from liquidation is crucial to prevent having all of your valuables taken away from you. Under normal circumstances, you can keep your car, social security, and other belongings like clothing. Nonetheless, talking to a trustworthy Missouri bankruptcy attorney about these bankruptcy exemptions should give you a clearer picture of what to expect when converting your Chapter 7 bankruptcy to Chapter 13.
What is Chapter 13 Bankruptcy?
Also known as an individual or consumer reorganization, Chapter 13 bankruptcy is where the petitioner doesn’t need to give up any property or personal assets. Instead, you will be allowed to develop a debt settlement plan to pay off your debt within three or five years slowly.
Having a regular source of income is key to being qualified to file for Chapter 13 bankruptcy. It is also considered the most helpful bankruptcy chapter as it gives you more opportunities to pay your dues on time. The minimum amount you need to pay will be determined by how much you earn, how much you owe, and how much every unsecured creditor would have received if you chose to file for Chapter 7 bankruptcy.
To help you determine if converting your Chapter 7 Bankruptcy to Chapter 13 suits your current situation, reach out to a Kansas City Bankruptcy attorney immediately!
Why You Should Convert From Chapter 7 to Chapter 13 Bankruptcy?
Before converting Chapter 7 to Chapter 13, you must first be aware of why doing it makes a ton of sense.
- Court order – The United States Bankruptcy Court will require that you convert Chapter 7 to 13 if they see that you do not meet the eligibility requirements for Chapter 7 Bankruptcy filing.
- Voluntary – It is possible for your financial situation to change as time goes on, which may make you suddenly become unwilling to part with some of your property. Other factors that might contribute to your decision include forgetting to declare a valuable asset and having debt that can only be discharged through Chapter 13 Bankruptcy.
On the other hand, below are the reasons why converting Chapter 7 Bankruptcy to Chapter 13 CAN NOT be done:
- The United States Bankruptcy Court has determined that you are not eligible to file for Chapter 13 Bankruptcy
- You have acted in bad faith (e.g. the bankruptcy trustee discovers significant assets that you chose not to declare)
- You have already converted your bankruptcy case from another chapter (e.g., initially filing for Chapter 13 Bankruptcy, then converting it to Chapter 7)
How to Convert from Chapter 7 to Chapter 13?
For the process of how to convert Chapter 7 to Chapter 13 bankruptcy, you can follow these steps:
- File a motion that asks permission from the court and explain why you need to convert your bankruptcy case
- Send the motion to your creditors, trustees, and other interested parties
- Attend a brief hearing
In some cases, the court may grant your petition even without a hearing. However, there are also cases where the court has additional orders you must follow. Make sure you’re working with a Missouri bankruptcy attorney to convert your Chapter 7 bankruptcy to Chapter 13 successfully.
Call our Kansas City Bankruptcy Attorney Now!
When faced with financial problems, having an experienced attorney on your side may be the difference between your debt continuing to pile up and becoming financially free. Our attorneys at Jeppson Law Office possess the experience necessary to convert your Chapter 7 Bankruptcy to Chapter 13 and any other bankruptcy cases.
If you want to give your financial situation a much-needed fresh start, set up an initial consultation with our Kansas City bankruptcy attorney today! We also offer excellent legal services in other practice areas, such as Credit Repair and Divorce Bankruptcy.