How to Convert Your Chapter 7 Bankruptcy to Chapter 13
Bankruptcy Attorney in Chicago Illinois
Bankruptcy is often seen by many as a way of starting anew. Be it by way of selling nonexempt assets to pay off debt and monthly payments or through a repayment plan, bankruptcy offers individuals a new lease at life after a terrible financial crisis. If you are facing repossession, foreclosure, or wage garnishment, bankruptcy also helps put these on automatic stay. However, some plans are more suitable for some than others and this is where conversion comes in. Before considering converting your chapter 7 bankruptcy to chapter 13, it is best to consult with an experienced bankruptcy attorney from Chicago first to walk you through the bankruptcy procedure and even represent you in bankruptcy court.
To define succinctly, chapter 7 bankruptcy is the kind that is filed by the majority because it involves no repayment plan and only requires that you earn below the state median income. Still, a bankruptcy means test or a qualifying test exists in order to determine your eligibility for chapter 7. Chapter 13 is most often filed by those with a higher income and involves a repayment plan.
Trusted Chicago, IL Bankruptcy Attorney
If you are dealing with bankruptcy and are in need of assistance in converting chapter 7 to chapter 13 bankruptcy, get in touch with a Chicago area bankruptcy attorney from Cutler & Associates, LTD. A bankruptcy attorney can help walk you through the process of converting chapter 7 to chapter 13 bankruptcy in order to make your bankruptcy situation more convenient.
Get in touch with a bankruptcy attorney from Cutler & Associates, LTD. An attorney can help with the more intricate matters of your bankruptcy case that you wouldn’t otherwise be too familiar with. An attorney can also fight for you by offering quality representation to get the best possible outcome. Schedule an appointment with Cutler & Associates, LTD right now.
Why do I need a Bankruptcy Attorney in IL?
When you know that you’ve gone bankrupt and wish to sort matters out, it can be tempting to skip getting legal assistance and just dive head first into the situation. This act isn’t advisable since the bankruptcy process entails a complex process that can leave you feeling more confused than enlightened. This is why having a bankruptcy attorney is important.
When converting chapter 7 to chapter 13 bankruptcy, remember to consut with a bankruptcy lawyer from Cutler & Associates, LTD. A bankruptcy lawyer can evaluate your case and determine the best possible action if you wish to convert your bankruptcy. A lawyer can also tell if conversion is the best step in your situation.
Since 1990, Cutler & Associates, LTD has been providing legal services to individuals in the Chicago area who have been dealing with bankruptcy and other related matters such as credit score, debt, and more. The law firm’s attorney offers personalized solutions to each case to show that the bankruptcy relief strategies are aligned with the financial situation such as the debtors income. The attorneys provide a professional, personal, and confidential legal evaluation to ensure your case is a success. Get in touch with an attorney right now.
What are Chapter 7 and Chapter 13 Bankruptcies?
Before you can even convert chapter 7 to chapter 13, you must first understand the difference between these two. As previously mentioned, chapter 7 bankruptcy involves declaring bankruptcy exemptions and selling items declared as nonexempt to make a monthly payment while chapter 13 bankruptcy involves a five-year repayment plan that the chapter 13 debtor has to undertake.
A more detailed read of these two bankruptcies are below. If you need legal advice in order to clarify one from the other, the smartest move would be to get in touch with a legal professional from Culter & Associates, LTD who can help you from bankruptcy to debt relief to credit card issues.
What Are The Reasons for Converting Chapter 7 to Chapter 13 Bankruptcy?
Converting to chapter 7 is a preferred strategy by most individuals since this is the easiest way to wipe debts away without a five-year repayment plan. Still, there are instances wherein converting to chapter 13 becomes necessary after filing.
Court-Ordered Conversion
If a court orders it, you would have to convert to a chapter 13 plan. This usually happens when it is determined that you are ineligible for chapter 7, usually due to mistakes on the chapter 7 bankruptcy means test which involves mathematical calculations intent on analyzing whether or not you can afford to make monthly unsecured debt payments.
Voluntary Conversion
You yourself might wish to convert from chapter 7 to chapter 13, largely due to changes in financial circumstances or the realization that you could lose valuable property. A chapter 13 repayment plan can help you keep some of your property.
Change in Financial Circumstances
A change in financial circumstances such as a new, higher-income job could prompt you to want to file for chapter 13 bankruptcy benefits which are particularly useful for catching up on overdue mortgage payments and loans.
Miscalculation in Property Amount
If the debtor’s property is worth more than they thought, they are eligible for converting their chapter 7 case to chapter 13 bankruptcy since this kind of bankruptcy allows them to keep some of your property.
Failure to List Valuable Assets
If you have failed to disclose or list a valuable asset due to ignorance or underestimation, you can convert your bankruptcy to a chapter 13 payment plan. Converting chapter 7 to chapter 13 bankruptcy is also useful if you wish to discharge certain debts such as marital property settlement.
How Do I Convert from Chapter 7 to Chapter 13 Bankruptcy?
Converting chapter 7 to chapter 13 bankruptcy is relatively uncomplicated. However, there is still a process that you need to follow, which includes:
- Filing a motion or bankruptcy petition seeking the court’s permission
- Sending the motion to creditor, trustee, and other interested parties
- Attend a short hearing
Should there be no objections to your motion, a hearing wouldn’t be needed to grant your request. To acquaint yourself better with the process of converting chapter 7 to chapter 13 bankruptcy, get in touch with a bankruptcy attorney from a reputable Chicago, IL law office.
Call our Chicago, IL Bankruptcy Attorney Now!
Dealing with bankruptcy on its own is heavily intimidating and converting chapter 7 to chapter 13 bankruptcy just might be even more daunting. This is why it isn’t recommended that you go through bankruptcy alone. If you are dealing with debts and are seeking relief, get in touch with a Chicago, IL bankruptcy attorney from Cutler & Associates, LTD.
Having been practicing and helping clients with bankruptcy filing since 1990, the attorney from the law firm is equipped and skilled in reviewing and analyzing your case, representing you, and formulating strategies that can ensure the best outcome possible for your situation. A Chicago attorney can provide personalized and confidential evaluations to your converted case that take every detail into account from unsecured debt to any bankruptcy exemption. Schedule an appointment with a bankruptcy attorney from Chicago, IL right now.