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A chapter 13 bankruptcy, is typically a three to five year reorganization plan where a plan payment is made monthly by the debtor to the trustee. If you fail to make your monthly plan payments, the trustee will file a motion to dismiss your case. Sometimes, debtors are worried that their financial situation could change during the three to five years in a Chapter 13 and they will no longer be in a position to afford their monthly obligations to the court and others. Section 1307(a) of the bankruptcy code allows a debtor, who has not previously converted, and who is eligible for a chapter 7 to convert his or her case. A notice of conversion or a motion to convert your Chapter 13 case is filed by your attorney. It is important to note, that sometimes a debtor has to give up assets upon conversion but every case is unique and should be discussed with an experienced bankruptcy attorney.
In sum, just because you filed a Chapter 13 bankruptcy does not mean the court will force you to stick to your plan for up to five years. You do have options. If you have questions regarding a conversion, consult an experienced Los Angeles bankruptcy attorney at Sky Law Group today.
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