![]() ![]() Creditors may have an opportunity to submit new proofs of claims if more money becomes available for them upon the sale of non-exempt property. Proofs of claims submitted by creditors will automatically transfer from the Chapter 13 proceeding to the Chapter 7 proceeding. Also, you will need to submit forms related to the means test and any secured debts. (Debts that you incurred after filing under Chapter 13 can be included and discharged in the Chapter 7 proceeding if they are dischargeable.) Even if your finances have not changed, you may need to resubmit the same information in some states. You will need to update some of the forms if your income, debts, and expenses have changed. Most of the bankruptcy forms that you filed for Chapter 13 can be transferred to your Chapter 7 proceeding. Just because you could not pass the means test when you initially filed under Chapter 13, though, does not mean that you will not pass it now if your circumstances have changed. This is meant to avoid creating a loophole for debtors with substantial income and assets to file under Chapter 13 and then change to Chapter 7 to escape paying back more of their debts. Even if a court does not require a debtor to actually pass the test, it likely will prevent them from converting to Chapter 7 if they have enough income to repay some of their debts. The main obstacle in converting to Chapter 7 is passing the means test either explicitly or implicitly. You have a right to convert a Chapter 13 case to Chapter 7 as long as you are eligible for Chapter 7. Or the bankruptcy court might force them to convert to Chapter 7 if they cannot keep up with their payments under the Chapter 13 repayment plan, although this is uncommon. They might have filed under Chapter 13 to keep a specific asset, such as their home, and they ultimately might choose not to keep this asset. ![]() After initially filing for bankruptcy under Chapter 13, a debtor might decide that they need to file under Chapter 7 instead.
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