If a change in the financial situation is permanent and sufficient to allow you to qualify for Chapter 7 we can consider converting the case from Chapter 13 to Chapter 7 anytime during the plan period. The conversion would terminate the Chapter 13 plan and discharge the debts just as if you had started out in Chapter 7. It may also be possible to add debts incurred after the Chapter 13 bankruptcy was filed.
Conversion to Chapter 7 may not always be the best strategy though, even if you qualify for Chapter 7. The ability to repay taxes, cram down loans on vehicles and cure mortgage defaults might make staying in Chapter 13 the wiser approach. There will also be additional legal and court fees before a case can be converted to Chapter 7. If you’re struggling to make the plan payment or foresee a change in income or expenses contact us as soon as possible to discuss all the options.
