For those who just finished filing for Chapter 7 in Beloit or elsewhere in Wisconsin, this might be a confusing question.
It may seem counter-intuitive, but there are times when switching from debt liquidation to debt reorganization makes sense for Wisconsin residents. The government understands this, too, but only offers a one-time opportunity for you to change your filing.
This article will present some general reasons why you might consider changing the type or chapter of your bankruptcy case from Chapter 7 to Chapter 13 and point you in the right direction to begin the process.
Read the article, “How to Convert from Chapter 13 to Chapter 7 Bankruptcy in Wisconsin” by The Fitzgerald Law Firm to learn more about your options if you are having difficulty keeping up with your repayment schedule.
When to Convert Chapter 7 to Chapter 13 in Wisconsin
This type of bankruptcy provides more options for managing debt through debt reorganization and a repayment schedule, making it easier to reach your financial goals in some cases.
You may want to consider filing bankruptcy under Chapter 13 if you’re looking to accomplish any of the following goals:
- Save your home
- Save your car
- Get out from under your second mortgage
- Get other junior liens on your home removed (lien stripping)
- Reduce the principal balance of your car loan
- Keep other non-exempt property
- Pay off non-dischargeable priority debts*
*Non-dischargeable priority debts include payments Chapter 7 does not allow you to discharge, such as: alimony, child support and some taxes.
There are many reasons to consider choosing Chapter 13 over Chapter 7, but not everyone who converts elects to make this change. In some cases, you may be forced to convert to Chapter 13 bankruptcy in Wisconsin. Keep reading to learn more.
To find out more about which chapter of bankruptcy you might want to file, read the article, “How to Choose the Right Type of Bankruptcy in Wisconsin” by The Fitzgerald Law Firm.
Forced Conversion from Chapter 7 to Chapter 13 Bankruptcy in Wisconsin
If your income has increased since you filed for Chapter 7, you may want to (or be forced to) convert your bankruptcy filing from debt liquidation to debt redistribution, which Chapter 13 provides.
It’s possible to be forced into converting your Chapter 7 bankruptcy case to a Chapter 13 bankruptcy if your financial situation has changed and you are now making too much money to justify your Chapter 7 qualification.
There are many reasons your income may have changed since your previous filing, including:
- Promotion and raise at work
- Taking a new job with higher pay
- Your spouse taking a job who was previously unemployed (if you filed jointly)
- Change in your spouse’s salary (if you are filing jointly)
- Your spouse taking a new job with higher pay
- Receiving a promotion or coming into additional income for a variety of reasons
If you suspect your income is higher than you originally reported with your initial Chapter 7 bankruptcy filing, you should contact a proven bankruptcy lawyer for assistance, as you don’t want to risk having the courts find your bankruptcy to be in bad faith and dismissed all together.
If this were to happen, you would likely be notified by your Chapter 7 Bankruptcy Trustee. You should contact a knowledgeable bankruptcy attorney right away to help you explore your rights and options, and help you navigate through this process.
If you do not respond, you risk dismissal of your current bankruptcy case all together.
If you are unfamiliar with bankruptcy for debt reorganization, read the article, “Chapter 13 Bankruptcy in Beloit, Wisconsin: What to Expect“ by The Fitzgerald Law Firm.
How Do I Convert from Chapter 7 to 13?
When considering a conversion from Chapter 7 to 13 in Wisconsin, you will need to show you have the income to meet the requirements of a Chapter 13 repayment plan.
In Wisconsin, you have a one-time right to file for conversion to Chapter 13 after filing for Chapter 7. It is extremely important for you to contact an experienced and knowledgeable attorney who specializes in Wisconsin bankruptcy cases.
This type of attorney is more likely to stay up-to-date with changing bankruptcy law in Wisconsin and help you understand the requirements, deadlines and other important factors before filing. Working with a skilled bankruptcy lawyer will also help ensure your motions are filed correctly and in a timely manner in your case.
FREE 15-Minute Consultation
The Fitzgerald Law Firm, specializing in Wisconsin bankruptcy law, understands it’s common for individuals considering bankruptcy to have questions and even hesitations before proceeding.
Lane Fitzgerald is pleased to offer a FREE 15-minute consultation to discuss your specific needs and help you determine which course of action might make the most sense for your financial goals and requirements. Click the link below to take the first step today.