Pros and Con regarding converting ch 13 to 7

[Anonymous]

What are the pros and con converting ch13 to ch7?

also, if currently in ch13 should I just stay in ch 13? Eligible to convert to ch 7 at the end of the year. 

[despritfreya]

I cannot answer your question as the pros and cons of a 7 vs. 13 in your situation since you give no details relative to your case. However from the tiny bit of info you did give, if you think a conversion from the 13 to the 7 is going to get you a 7 discharge, please think again.

From your post it appears that you filed Chapter 13 within 8 years after filing your successful Chapter 7. Parking yourself in a Chapter 13 long enough to get you past that 8 year mark is fine. What is not fine is thinking that converting your 13 to a 7 once the 8 years passes is going to help you. It will not, and, quite frankly, on myfico, your flawed thought process seems to be prevalent.

Converting your Chapter 13 to a Chapter 7 is not going to result in a Chapter 7 discharge since the filing date will not change. You will need to dismiss the 13 and then file a new case.

To put this matter to bed, hopefully once and for all. . .

11 USC § 348(a) states:

“Conversion of a case from a case under one chapter of this title to a case under another chapter of this title constitutes an order for relief under the chapter to which the case is converted, but. . . does not effect a change in the date of the filing of the petition, the commencement of the case, or the order for relief.” (Emphasis added.)

Under § 348(a), a converted case is deemed to have been filed at the time the bankruptcy case was initially filed and before it was converted. See , for example, Resendez v. Lindquist, 691 F.2d 397, 399 (8th Cir.1982), which held that when there is a conversion from chapter 13 to chapter 7, the debtors are deemed to have filed the converted case at the time the original bankruptcy case was filed. Ergo, the filing date of a converted case relates back to the initial filing date for all purposes.  § 348(a) mandates that a case which has been converted to Chapter 7 from Chapter 13 is deemed to be "filed under" Chapter 7 on the date on which the Chapter 13 was filed.

I trust you have an attorney who can further explain this to you. If you don’t, please find one.

Des.

[Anonymous]

Thank you for your response. I was on my phone when I posted my initial post so that's why it was so short and lacked much information.

You are correct. I filed for Ch 7 (due to divorce) in Sep 2009 and discharged in Dec 2009.

I then had to file for bk again in Oct 2016 (stupid me I was so good until i got into another relationship and bought a house and racked up some bills for the house. then ended the relationship and was left with a ton of bills to pay. smh)

I will be eligible for Ch 7 in Dec 2017. My attorney said that once the time nears, we can discuss converting my Ch 13 to the Ch 7...however, I think its best for me to just stay in the Ch 13 and wait out the three years. I'm on the three year plan. 

Ch 7 would be nice however I would like creditors to see that I am, somewhat, making an effort to pay some of my debt back.

I guess I just wanted to jump the gun and see if anyone else converted their 13 to 7 and what their experiences was.

Again, thank you for your response. I appreciate it.