Many people can find the strict schedule of paying back debt under a Chapter 13 bankruptcy filing simply too much to keep up with over time. After all, if you have filed this type of debt reorganization, you are not allowed to miss a payment in the average 3-5 years it takes until your bankruptcy case is resolved.
One possible solution to this challenge is to convert your Chapter 13 bankruptcy to a Chapter 7 bankruptcy. This may sound simple, but there are conditions you must meet in order to file for Chapter 7 debt relief, as well as some key things to consider before moving in this direction.
This article will explore issues you will want to consider before pursuing a change from Chapter 13 to Chapter 7 bankruptcy in Wisconsin.
If you are interested in learning more about Chapter 7 bankruptcy in Wisconsin, read the following articles by The Fitzgerald Law Firm:
- Filing Chapter 7 Bankruptcy: What You Need to Know
- 5 Ways to Get Rid of Income Tax Debt with Chapter 7 Bankruptcy
- Using Chapter 7 Bankruptcy to Stop Wage Garnishments in Beloit
Reasons To Convert Chapter 13 to Chapter 7 in Wisconsin
There are many reasons why someone would want to file Chapter 7 after Chapter 13 bankruptcy in Wisconsin.
As mentioned earlier, a common reason for converting a Chapter 13 bankruptcy to a Chapter 7 filing, is the difficulty keeping up with the Chapter 13 payment schedule. In other words, in spite of good intentions to pay off debt, there may simply be too much of it to handle.
Another reason people decide to pursue a Chapter 7 bankruptcy filing in Wisconsin after having filed for Chapter 13 bankruptcy, may be based on changing needs or desires regarding property. If you are no longer interested in keeping property which your Chapter 13 filing allowed you to keep, you may be interested in converting to Chapter 7 bankruptcy.
Whatever your reasons for wanting to pursue a transition from Chapter 13 to 7 bankruptcy in Wisconsin, you should first discuss your situation with an experienced bankruptcy attorney.
Forced Chapter 7 Conversions in Wisconsin
It is possible for the bankruptcy court in Wisconsin to force you to convert your Chapter 13 bankruptcy case to a Chapter 7 filing. The would only happen if the court finds cause in your case. Examples of cause for forcing bankruptcy conversion in Wisconsin might include the following:
- Failing to file your Chapter 13 plan on schedule
- Failing to make your payments under your Chapter 13 plan
- Causing an unreasonable delay in repayment which causes harm to your creditors
If you have been ordered by the court to convert to Chapter 7 bankruptcy, you should contact a knowledgeable bankruptcy attorney right away.
Who is Allowed to Convert Chapter 13 to Chapter 7 in Wisconsin?
There is only one exception to being allowed to change your Chapter 13 bankruptcy case to a Chapter 7 bankruptcy in Wisconsin:
If you already filed for Chapter 7 bankruptcy and received a discharge within the last 8 years, you would not be allowed to convert your Chapter 13 filing to a Chapter 7 filing.
Otherwise, you absolutely have the right to convert from Chapter 13 to Chapter 7 in Wisconsin–you just need to qualify.
How Do I Qualify for Chapter 7 Bankruptcy in Wisconsin?
In order to meet the requirements to convert your Chapter 13 bankruptcy to Chapter 7, you must qualify for Chapter 7 relief.
While there are a few requirements you must meet, the most important hurdle will be to pass the Chapter 7 Means Test.
For more information, discuss this requirement with a skilled Wisconsin bankruptcy lawyer.
If you are interested in converting to Chapter 7 bankruptcy, contact an attorney specializing in bankruptcy law to explore your options.
What if I Already Failed the Chapter 7 Means Test Before Filing for Chapter 13?
If you filed for your current Chapter 13 bankruptcy case because you failed the Chapter 7 Means Test, do not let that stop you from exploring your options now. It is possible there have been changes to your financial situation and you may now qualify for Chapter 7.
Discuss your options with a proven bankruptcy attorney.
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