In certain cases depending on financial means, converting over to chapter 13 bankruptcy from chapter 7 bankruptcy can help you with your financial goals. Converting into another bankruptcy type is often a good means to set up a repayment plan as well as a great choice for securing some of your assets. A bankruptcy attorney can efficiently aid you in conducting the conversion.
Here are some reasons to convert a chapter 7 bankruptcy case to chapter 13:
Missed mortgage and car payments often lead to the seizure of assets under Chapter 7. By re-filing under Chapter 13, the debtor can catch up on missed payments and have a repayment plan to ensure that they can secure their assets in the future.
Financial situations may also alter and in this case, a chapter 7 bankruptcy means test disqualifies you from this form of bankruptcy. If you are earning a stable disposable income and you get disqualified by a means test, you may be accountable for undertaking a Chapter 13 repayment plan rather than qualify for bankruptcy relief under chapter 7.
Dropping debt obligations can aid you to accomplish financial goals to qualify for chapter 13. It could permit you to pay off the second mortgage or prioritize your debts to release them. Some priority debts may not be discharged under Chapter 7. However, it can be repaid under Chapter 13.
The procedure of converting a chapter 7 bankruptcy claim into chapter 13 involves a motion and the court. In this stage, you need to explain your reasons for conversion to the court as well as prove that you can pay for the repayment plans under Chapter 13 bankruptcy. Any individual who files for Chapter 7 bankruptcy as a one-time right to convert and if you can produce evidence of an eligibility for chapter 13 bankruptcy, the courts will motion in support of this bankruptcy type other than chapter 7 as it provides some relief to creditors and somewhat better financial position for debtors.
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