Case conversion · Beverly Hills
Converting Chapter 13 to Chapter 7 in Beverly Hills When Payments Stop Working
Converting Chapter 13 to Chapter 7 in Beverly Hills can keep your bankruptcy protection alive when you can no longer afford your plan. If the trustee has filed a motion to dismiss or you have missed payments, call (310) 362-9071 for a free consultation before the case is lost.
- You can usually convert at any time
- You must qualify for Chapter 7 when you convert
- Your filing date stays the same
- Collection protection continues
Signs it may be time to convert
- You lost a job or had a cut in pay or hours
- Medical bills, a divorce or a new baby changed your budget
- You are behind on plan payments and the trustee filed a motion to dismiss
- You no longer want to keep the house or car the plan was protecting
- Your plan was never confirmed and is not going to work
How we convert your case, step by step
- Review your case. We look at your plan, payment history, any motion to dismiss and what has changed. Some problems are better fixed by changing the plan instead.
- Check Chapter 7 eligibility. We look at your current income and expenses and any prior discharge that could block a Chapter 7 discharge.
- Check your property. Property you owned when you first filed is reviewed under Chapter 7's rules, so we confirm what is protected by your exemptions.
- File the notice of conversion. Converting is usually done by filing a notice with the court, plus updated schedules within the deadline.
- Chapter 7 process. A Chapter 7 trustee is appointed and holds a new 341 meeting. We prepare you and attend with you through discharge.
Cost and timeline
The court charges a small fee to convert. Our fee depends on whether we filed your original case and how much needs to be updated, and you get it in writing at the consultation.
Once converted, the case follows the Chapter 7 timeline. A new 341 meeting is scheduled, and the discharge usually comes a few months after that.
Converting a case in the Los Angeles Division
Cases from Beverly Hills and most of Los Angeles County are in the Los Angeles Division of the U.S. Bankruptcy Court, Central District of California. When a Chapter 13 is converted, the Chapter 13 trustee stops collecting plan payments and a Chapter 7 trustee from the local panel takes over.
Plan payments the Chapter 13 trustee is still holding at the time of conversion are generally returned to you, not sent to creditors, after approved costs are paid. Property you acquired after your original filing date is generally not part of the Chapter 7 case, as long as the conversion is made in good faith.
Mistakes to avoid
- Letting the case be dismissed. A dismissal ends your protection and can limit protection in your next case. Converting may keep it.
- Converting without checking eligibility. If you do not qualify for Chapter 7, the conversion can backfire.
- Forgetting non-exempt equity. Equity the plan was protecting may be at risk in Chapter 7.
- Hiding a change in income. Be upfront with us and the trustee. It protects your discharge.
Related services
Before converting, compare what Chapter 7 bankruptcy in Beverly Hills looks like for you. If your case was already dismissed, read about refiling after a dismissed case.
More on Chapter 13 bankruptcy
- Chapter 13 bankruptcy in Beverly Hills
- Chapter 13 Eligibility and Debt Limits
- How a Chapter 13 Plan Payment Is Calculated
- Car Loan Cramdown and the 910-Day Rule
- Changing a Chapter 13 Plan After Filing
- Why Chapter 13 Cases Get Dismissed and How to Avoid It
- Chapter 13 Hardship Discharge
- The Co-Debtor Stay: Protecting a Co-Signer
- Mortgage arrears cure plan
- Second mortgage lien stripping in Chapter 13
- Converting Chapter 13 to Chapter 7
Conversion questions
Can I convert from Chapter 13 to Chapter 7 at any time?
Yes, you can usually convert from Chapter 13 to Chapter 7 at any time while the case is open. You still have to qualify for Chapter 7 when you convert, and a recent prior discharge can block a new one. We check both first.
Will I lose my house if I convert?
You may keep your house after converting if your equity is protected by the homestead exemption. If you were behind on the mortgage, Chapter 7 will not let you catch up, so the lender may move forward. We look at this before you decide.
What happens to the money I already paid the trustee?
Money the Chapter 13 trustee already paid to creditors stays paid. Money the trustee is still holding when you convert is generally returned to you after approved costs.
Is it better to convert or to modify my plan?
Whether to convert or modify depends on why the plan stopped working. A short-term setback is often fixed by modifying the plan. A lasting drop in income usually points to converting.
Free consultation
Keep your protection before the case is dismissed
Call (310) 362-9071 or send the form. Tell us your case number and any hearing date on a motion to dismiss.
Law Offices of John Asuncion9454 Wilshire Blvd., Penthouse Floor
Beverly Hills, CA 90212
(310) 362-9071
Monday to Friday, 9 a.m. to 6 p.m.