Chapter 7 bankruptcy petitions are often viewed as the preferred option, as they enable a petitioner to discharge many unsecured debts apart from a repayment plan. When your conditions change, or creditors or the bankruptcy trustee object to your petition, you may want or be required to transition from a Chapter 7 to a Chapter 13 petition.
The Chapter 13 bankruptcy attorneys at Allmand Law Firm have the knowledge and expertise to shepherd you through the process of converting from Chapter 7 to Chapter 13 bankruptcy in Houston. When administered properly, the conversion can save you time and resources while placing you on a cleaner path toward a future impaired by unmanageable debt.
Why Convert from Chapter 7 to 13?
There are many reasons why someone may want to change to Chapter 13 bankruptcy. The more common reasons that Houston bankruptcy lawyers encounter for converting from Chapter 7 to Chapter 13 bankruptcy include:
- The petitioner does not meet the Texas means test to qualify for Chapter 7 debt relief. That test compares the average monthly income and expenses of the petitioner’s household to the Lone Star State’s median income, with Chapter 7 petitions being allowed for households that fall below the median.
- The petitioner is concerned that the bankruptcy trustee would force the sale of certain property in a Chapter 7 proceeding, and elects to convert to Chapter 13 to protect ownership of that property.
- The petitioner’s financial situation substantially improves after the initial Chapter 7 filing, thus making a 3- to 5-year Chapter 13 repayment plan more viable.
Allmand Law’s attorneys and financial consultants could assess the benefits and drawbacks of starting your petition under Chapter 7 and the attendant benefits and risks of wanting or needing to convert to Chapter 13 while your petition is pending.
How Do You Convert a Bankruptcy Petition from Chapter 7 to 13?
As long as your case has not already been converted from a different section of the Bankruptcy Code, 11 U.S.C. § 706(a) establishes an unequivocal right to convert your Houston bankruptcy petition from Chapter 7 to 13. When you retain an Allmand Law attorney to manage this process on your behalf, we could:
- Prepare and file a formal motion for conversion with new income and expense schedules and a proposed repayment plan
- Serve copies of your motion to your creditors and the Chapter 7 and U.S. bankruptcy trustees
- Gather the necessary documents and evidence to verify that you will have regular monthly income to meet court-ordered debt repayments for the next 3 to 5 years
- Participate in all status and motion hearings on your converted case
Allmand Law’s attorneys will update you on all developments in your case and work with you to plan and administer a payment structure that will satisfy your obligations when your petition has been converted to Chapter 13.
Contact a Houston Attorney When You Have Questions About Converting from Chapter 7 to Chapter 13 Bankruptcy
The regular variance in your day-to-day finances can change rapidly. If those changes overshadow your original reasons for filing a Chapter 7 bankruptcy petition, you may have a legitimate basis for converting from Chapter 7 to Chapter 13 bankruptcy in Houston. The bankruptcy attorneys at Allmand Law Firm are ready and able to help you evaluate your options to make your best decision.
Please call our office to schedule a meeting with our experienced bankruptcy team. Our unwavering mission is to help good people through tough times.
