As a debtor, you have a right to convert a Chapter 13 bankruptcy case to a Chapter 7 bankruptcy case. This conversion is a “one-time only” right. Once the case has been converted to a Chapter 7 case, a debtor may not reconvert to a Chapter 13 case. The property of the bankruptcy estate is limited to the property that was in the estate and under the debtor’s control at the time the Chapter 13 petition was filed. Secured creditors retain their secured status unless the debt has been paid in full, regardless of the valuation of the security. If the court finds that the debtor converted in bad faith, property of the estate will consist of property held by the debtor on the conversion date.
You may convert a Chapter 13 case to a Chapter 7 case at any time. However, you must qualify under the means test to be a Chapter 7 debtor.Unless the debtor is a farmer, the court may convert a Chapter 13 case to a Chapter 7 case for cause upon request of a party in interest after notice and a hearing. “For cause” includes the following:
Areas Served:We handle bankruptcy cases through the mid-Hudson Valley including these counties and communities. Counties: Orange, Dutchess, Rockland, Westchester. Communities: Arlington, Beacon, Haverstraw, Middletown, Monsey, Mount Kisco, New City, Newburgh, Ossining, Peekskill, Poughkeepsie, Spring Valley, Stony Point, Suffern, West Haverstraw.