Can I Convert My Chapter 13 to Chapter 7?
When there has been a significant change in circumstances since the Chapter 13 was filed, most people are able to convert from a Chapter 13 to a Chapter 7. For example, the most common cause of converting from a Chapter 13 to Chapter 7 is the loss of a job. Another is example is a major increase in monthly expenses. In order for me to give you a definitive answer to this question, I need to review your case with you.
There are some instances where it might be a bad idea to convert. For instance, a person who has a large amount of equity in their house that is not protected by the Georgia bankruptcy exemptions may not want to convert to Chapter 7. If a person in this type of situation converts, the Chapter 7 trustee will put their house on the market and will sell it if she can find a buyer. Most bankruptcy debtors in this type of situation will usually voluntarily dismiss their Chapter 13 to keep the case from going into Chapter 7.
There are many factors that go into deciding whether or not a Chapter 13 case should be converted to a Chapter 7. Each case is different. Any person who is considering this option should meet with their attorney who filed the case and review the entire situation.