Converting a Chapter 13 bankruptcy to a Chapter 7

A Chapter 13 bankruptcy is a repayment plan, where the repayment is normally the net amount of excess income beyond the allowable expenses.  This net amount is paid out for 60 months and is divided among the unsecured creditors.  If, during the repayment, the debtor’s net income changes because of loss of income or some other change in the debtor’s life, it may be wise to request for a conversion from a Chapter 13 to a Chapter 7, where the debts will be discharged, not repaid.  If you find yourself in this situation and need guidance, please give me a call to set up a consultation.

Todd Courser – 810-245-0813