When you file for bankruptcy in Oklahoma as a consumer, you must typically decide whether to file for Chapter 13 or Chapter 7 bankruptcy. In some situations when a consumer’s debt loan is too high, that consumer may only have the option of filing for Chapter 11 bankruptcy. But what happens if you choose to file under the wrong chapter? In other words, what if you file for Chapter 13 bankruptcy and realize that you would have been better off if you had filed for Chapter 7 bankruptcy? Can you convert from a Chapter 13 bankruptcy case to a Chapter 7 bankruptcy case? This process is known as conversion.
For many consumers, the answer is yes. However, you must meet certain requirements in order to be eligible to convert your case.
Requirements for Converting Your Chapter 13 Case to a Chapter 7 Case
If you are thinking about converting your bankruptcy case from Chapter 13 to Chapter 7, the most important thing to consider is whether you are actually able to do so. Generally speaking, there are two different requirements. First, have you received a Chapter 7 bankruptcy discharge within the last eight years? If not, then you can be eligible to convert your case. However, the second step is that you still must qualify for Chapter 7 bankruptcy. This means that you must pass the “means test.”
If those two requirements have been met, then you can file a “Notice of Conversion,” pay a conversion fee, and move forward with your Chapter 7 bankruptcy case.
Reasons for a Consumer to Convert from Chapter 13 to Chapter 7 Bankruptcy
Why do most Oklahoma residents want to convert from Chapter 13 to Chapter 7 bankruptcy? Such a decision typically occurs for one of two reasons:
Contact an Oklahoma Bankruptcy Attorney
Bankruptcy law is extremely complicated. It is important to discuss your case with an Oklahoma bankruptcy attorney before you file to ensure that you are making the right choice for your particular situation. If you do need help converting your case from Chapter 13 to Chapter 7 bankruptcy (or another route of conversion), our firm can assist you. Contact the law office of Deborah Brooks & Associates, P.C. today.