Question about converting a Chapter 13 to a Chapter 7

[help4mydebt]

Hello! We are very seriously considering filing a Chapter 13, but I have a couple questions before I contact an attorney. My husband was out of work for over 6 months due to a work related injury back in 2003, so in 2004, we filed Chapter 7 and it was discharged. Unfortunately, due to the economy, and the fact that my husband is going to need surgery again, we are in need of filing Chapter 13 at this time. My question is, if we file a Chapter 13 by this summer, in two years when we reach the 8 yr. mark for our Chapter 7, will we be able to convert it to a 7?

A friend says she talked to a bk atty about this and was told that if she files a 13 before the 8 yr. mark then she can't convert to a 7, but research I have done via the internet appears to say otherwise, so I am confused.

Thank you!

[lrprn]

My question is, if we file a Chapter 13 by this summer, in two years when we reach the 8 yr. mark for our Chapter 7, will we be able to convert it to a 7?

It all depends on how you come out on the amended Means Test and Schedules in two years.

If you show less than the highest disposable income/month that can support a Ch 13 on your amended Means Test or Schedule I minus J (which one depends on the custom of your local court), you can definitely convert your 13 to a 7.

However, if you show more than the minimum disposable income/month that can support a Ch 13, then you can't convert to a 7.

[justbroke]

I don't think you'll be able to convert, because the filing date with a conversion remains the same as the case was originally filed. The keyword there is convert. You may need to (voluntarily) dismiss the Chapter 13 and file a new case under Chapter 7. However, you may run into some obstacles, such as your voluntary dismissal of the Chapter 13, may lead to a dismissal with prejudice causing an automatic 180 day bar from you filing another bankruptcy.

As lrprn points out, you would still need to qualify to receive a discharge under Chapter 7 anyhow.