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It’s nearly impossible to find financial stability when you’re in debt. Here at Weik Bankruptcy Attorney, we’re more than happy to help you explore options so you and your loved ones can get back on track.
One of these options is converting your Chapter 13 bankruptcy in Raleigh into Chapter 7.
Chapter 13 bankruptcy allows you to restructure your debts by paying them in installments. This is great for individuals who want to keep their assets and have the income to pay their debts back. Chapter 13 is designed to make those payments more manageable over the course of three to five years.
However, there are valid reasons why someone might want to convert their Chapter 13 filing into a Chapter 7 filing down the line.
Why People Convert from Chapter 13 to Chapter 7
Some of the most common reasons include:
- A change in financial circumstances that makes it difficult or impossible for them to make payments according to a chapter 13 plan
This is especially likely after major life events such as divorce, serious injury, or the loss of a job
- You want immediate debt relief instead of a years-long repayment plan
In some cases, a Chapter 13 bankruptcy in Raleigh can last as long as five years before the case is closed and debts are discharged. Although this chapter does provide flexible payment plans, this length of time may be less desirable than the immediate relief that chapter seven provides.
- The chapter 13 bankruptcy filing was completed incorrectly, which can happen if it is not filed by an experienced attorney
An incomplete Chapter 13 bankruptcy might give creditors the green light to start calling or visiting debtors with demands for payment right away. If this happens to you, contact a bankruptcy lawyer in Raleigh NC ASAP, and we will help you trigger the automatic stay to stop creditors from harassing you.
How do you convert a Chapter 13 bankruptcy in Raleigh to Chapter 7?
The moment you start thinking about converting your bankruptcy chapter, call Weik Bankruptcy Attorney. Conversion is complex, and any mistake can cost you the chance for greater debt relief. It’s best to have our bankruptcy attorney in Raleigh NC guide you through the entire process.
In general, however, you’ll have to go through the following:
- Bankruptcy Forms: Most of the forms you submitted for Chapter 13 can be transferred to your Chapter 7 proceeding. However, you will need to update them in case some information changed, such as your debts, income, and expenses. You will also need to submit documents related to any secured debts and the means test.
- Proof of Claims: All Chapter 13 proof of claims are automatically transferred to the Chapter 7 proceeding. During this part, your creditors can file a new proof of claim, especially if more money becomes available as a result of the sale of non-exempt property under Chapter 7.
- Bankruptcy Schedules: All schedules, statements, or lists previously submitted should be included with the Chapter 7 bankruptcy filing.
- Meeting of Creditors: You will need to attend a new meeting of creditors as part of the conversion process.
Call Us Today to Begin Your Debt-Free Journey
Filing for bankruptcy in Raleigh is not an easy decision, but it has the potential to transform your life for the better. With the help of a Weik bankruptcy attorney, you will be able to navigate bankruptcy court with the dignity and respect that you deserve.
Call Weik Bankruptcy Attorney today at 919-845-7721 for a free consultation, and set up a time to speak with one of our friendly professionals.