When you first filed Chapter 13, it probably felt like the right choice. A structured repayment plan, keeping your home, catching up on missed payments—it all made sense on paper. But now, months or maybe years later, you’re struggling to keep up with those monthly payments. The constant financial pressure hasn’t eased; it has worsened.
Many people discover that Chapter 13 becomes harder than they anticipated, especially when life throws unexpected challenges their way. The good news? You have options, and switching to Chapter 7 might be the lifeline you need.
At Whitten & Whitten, we’ve helped countless clients make this transition since our start in 1997. Here’s what you need to know about converting from Chapter 13 to Chapter 7 when your current plan just isn’t working.
Understanding your options starts with knowing how these two chapters actually work:
Chapter 13 requires you to follow a repayment plan for 3-5 years, making monthly payments to a trustee who distributes funds to your creditors. You retain ownership of your property, but you’re still committed to making those payments, regardless of what happens in your life.
Chapter 7 offers a faster path to debt relief, typically completed in 3-4 months. Most of your qualifying debts get discharged completely, without years of payments. While you might lose some non-exempt assets, many people find Chapter 7 feels more freeing, especially when money is tight or circumstances have changed.
Yes, absolutely. Converting from Chapter 13 to Chapter 7 is not only possible, it’s completely legal and more common than you might think. Federal bankruptcy law gives you the right to make this switch, and it can be done through the court with proper legal guidance.
The process involves filing a Notice of Conversion with the bankruptcy court, paying a small conversion fee, and meeting the eligibility requirements for Chapter 7. Most importantly, you don’t have to wait until your Chapter 13 plan is complete to make this change.
Life rarely goes according to plan, and the same income and expenses you had when filing Chapter 13 can change dramatically. Here are the most common reasons people convert:
Here’s what’s important to understand: wanting relief doesn’t mean you’ve failed. It means you’re being smart about your financial survival and recognizing when a different approach makes more sense.
Just because you qualified for Chapter 13 initially doesn’t automatically mean you’ll qualify for Chapter 7. Eligibility depends on passing the means test, which compares your income to your state’s median income level.
However, the very circumstances that make your Chapter 13 payments difficult, including reduced income, increased expenses, and changes in household size, often create the conditions that make you eligible for Chapter 7. An experienced bankruptcy attorney can reassess your current financial situation and determine if conversion is the right move for your case.
Making the switch can provide several significant advantages:
Faster debt relief and peace of mind. Instead of years of payments, you could have most debts discharged within months, giving you the fresh start you originally sought.
No more repayment plan pressure. Those monthly trustee payments that have been weighing you down? Gone. You can focus on rebuilding rather than just surviving.
Potential to save your home, car, or sanity. Depending on your specific circumstances and exemptions, Chapter 7 may provide better protection for your assets while eliminating the stress of ongoing payments.
A real chance to rebuild, not just tread water. Chapter 7 can give you the clean slate you need to move forward with confidence.
Converting between bankruptcy chapters involves specific legal procedures and requirements that vary by jurisdiction. An experienced attorney provides:
If your Chapter 13 repayment plan feels impossible to maintain, remember that you have choices. Converting to Chapter 7 isn’t about giving up; it’s about choosing a path that better fits your current reality and gives you the fresh start you deserve.
If you’re ready to explore your options, contact Whitten & Whitten today for a free consultation. We’ll review your situation, explain the conversion process, and help you determine if switching to Chapter 7 is the right move for your financial future. Your path to debt relief doesn’t have to be a struggle; let us help you find the approach that actually works for your life.