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Scura, Wigfield, Heyer, Stevens & Cammarota Blog

Conversion of a Chapter 7 Case to a Chapter 13 Case

[fa icon="clock-o"] July 25, 2018 [fa icon="user"] David L. Stevens [fa icon="folder-open'] Chapter 13, Chapter 7


It may seem odd at first thought why someone would want to be in a chapter 13 case if he or she qualified for a chapter 7. In recent weeks however, I have noticed that chapter 7 trustees are getting more aggressive about pursuing possible equity in a home - such little equity that in days past the trustee would have promptly abandoned the property. In such instances where perhaps the debtor under estimated the value of real property, or it is simply not worth battling with the trustee over what the value truly is, a debtor may convert a chapter 7 case to a chapter 13.

Through a chapter 13 plan, the debtor can "pay-out" any non-exempt equity through a plan. But important to note, once the chapter 7 trustee is out of the picture, so too are the fees the trustee has a right to collect. Hence, if conversion to a chapter 13 is likely, it is best to do it early on. The trustee's fees will have to be paid through the chapter 13 plan in addition to the non-exempt equity.

If you need help with a Chapter 7 or Chapter 13 bankruptcy call our offices today or contact us online for more information.



David L. Stevens

I have a passion for what I do. There are few things I enjoy more than helping good people and viable businesses find solutions to overwhelming debt.

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