Bankruptcy Q & A: Converting a Chapter 13 Bankruptcy to a Chapter 7

more+
less-

QUESTION

My husband and I earned too much money to file a Chapter 7 bankruptcy. As a result, we filed for Chapter 13. We surrendered our home to the lender and then my husband lost his job. Then our bankruptcy was dismissed because we couldn't make the payments. At that point, why wasn't our bankruptcy converted from Chapter 13 bankruptcy to Chapter 7? What are our legal rights and what should we do? -- Julie

ANSWER

Dear Julie -- Since your husband lost his job, your income may have dropped far enough for you to qualify for Chapter 7 bankruptcy and erase your debt. And since you gave up your home, that shouldn't be a problem in Chapter 7.

In all likelihood, the reason your case wasn't converted to a Chapter 7 bankruptcy was because your incomes at the time you filed were higher than the median income in your state. You see, the law established a means test that dictates which type of bankruptcy you can file. At the time you filed, you couldn't qualify to file a Chapter 7 bankruptcy.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Fonfrias Law Group LLC. | Attorney Advertising

Written by:

more+
less-

Fonfrias Law Group LLC. on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×