Confused about converting from a chapter 13 to a chapter 7

[mountanddo]

I am a bit confused as to what the criteria is for converting a chapter 13 to a chapter 7. I am in the position now that I have to file C-13 as I am facing wage garnishment and filed C-7 7 years ago so I have another year to wait until I can file C-7. There just is no way I am going to be able to hold off the creditors from garnishment for a whole year.

I asked the attorney if I could convert my chapter 13 to a 7 when next September came around and she said no. It was only the free consultation so I didn't ask any more about it at the time. Plus all her fees are built into the plan except for the filing fee so I really am between a rock and a hard place here.

I've seen some posts where people have converted and was wondering how you were able to do that.

[momofthree]

When you convert your ch.13 to a ch.7, it uses the original filing date, so if you don't qualify for a 7 when you file the 13 due to a prior bk, then you will not qualify to convert the case to a 7 at any time in the future. However, you can dismiss your ch.13 and re-file a ch.7 once the allotted time has passed, assuming you qualify for the 7 at that time. You will have 3 bankruptcies on your credit at that point, but I'm guessing that's not your biggest concern at the moment.

[mountanddo]

Ah ok, that makes sense. I am guessing in order to dismiss a chapter 13 you need to pay off the original attorney fees and then pay for the chapter 7? Are there any other fees that you must pay to dismiss the chapter 13? Since I'm in a 3 year plan it is probably just best to live with the 13 then.

I am wondering if that chapter 7 will come off of my credit report after 10 years? Not that that will improve my credit rating too much but in the long run having one bankrupcy on my report 5 years from now has got to be better than 3.

[momofthree]

Yes, the initial ch.7 filing from 7 years ago will drop off your report after 10 years (so, 3 years from now). The 13 will drop off 7 years after filing.