Why convert from 13 to 7?

[sleeplessinohio]

Hi all, thanks for looking in.

I've been reading for a while and notice some people talking about converting from a chapter 13 to a chapter 7.

May I ask when and why that might happen? Is this something to plan for? Is there some kind of advantage?

Thanks!

[needingsomehelp]

Hi there! I don't know about everyones situation, however ours was because the main reason for our Chapter 13 was to save our home. Unfortunately after a long hard fight with our mortgage company (we are in an adjustable rate mortgage that continues to go up), we are walking away from our home.
We are under the median income, so it just made more sense to get into the Chapter 7, get it discharged in hopefully 90 days, and move on. Hopefully we can buy another house in a couple of years!

Anyways, that is just my story. If it is something you are considering though, definitely speak to your lawyer about the pros and cons. Good luck.

[keepmine]

Just to expand on Needingsome helps's answer:
Circumstances change. It may be a secured asset you choose to surrender, it may be reduced income due to layoffs, illness, death of a spouse or, divorce or a million things in between.
These things are tough to plan for-just be aware that should something like this happen the option to convert may be there.

[CATCHMEIFYOUCAN]

My story of conversion:

I was working 2 full time jobs so I had to file Ch13 (no asset case: just my car). My attorney proposed a payment plan of $250 a month, but the Trustee saw I could pay $800 a month. My lawyer and the Judge said I just had to quit one job and convert to a 7. It made sense to pay nothing and wait out a couple months to discharge rather than paying $800 a month the next 5 years.

Good Luck, Catchmeifyoucan

[treadingwater]

I thought you could file ch. 7 and still keep your home/car ?

[keepmine]

I thought you could file ch. 7 and still keep your home/car ?

Depends on the amountof equity your state exempts.