Bankruptcy / Chapter 13 / Converting Chapter 13 To Chapter 7

Converting A Chapter 13 To A Chapter 7: 9 Things to Know

Written by Ben Tejes
Updated Oct 26th, 2022

Converting a Chapter 13 bankruptcy to a Chapter 7. bankruptcy is a common issue that we address.

In fact, did you know that only 38.8% of Chapter 13 bankruptcies end in successful discharge? Why is this the case? 

Here are some potential reasons. 

  1. You're in Chapter 13 bankruptcy because you couldn't afford the Chapter 7 fee upfront. An individual filed Chapter 13 bankruptcy 20 times in Memphis. If this is you, please contact us as we'd like to understand your situation.
  2. Your Chapter 13 payment is too high.
  3. Your situation changed and you now can qualify for a Chapter 7 bankruptcy.
  4. A Chapter 13 bankruptcy plan could take three to five years to complete. During that time, a debtor (the person who filed the bankruptcy case) could experience another financial hardship that makes it impossible to pay the Chapter 13 plan payments. 
If you are unable to pay your Chapter 13 payments, you might want to consider converting your Chapter 13 case to a Chapter 7 case. However, converting to Chapter 7 could have negative consequences. In this blog, we answer some FAQs about converting from Chapter 13 to Chapter 7. Here's are 8 things you need to know about converting from Chapter 13 bankruptcy to Chapter 7 bankruptcy.

1) What is the COST and do I QUALIFY for Chapter 7 bankruptcy?

Let me state this. Many bankruptcy attorneys take payments for a Chapter 7 bankruptcy in the form of a payment plan. If you have a free bankruptcy consultation with an attorney, and they need the Chapter 7 payment completely upfront, you can also check with another attorney.

You must demonstrate that you are unable to pay your Chapter 13 payments to convert to a Chapter 7 case. While you may not be required to complete another Means Test, you are required to file amended bankruptcy schedules reporting your current income and expenses. If your disposable income is above a certain amount, you may not qualify to convert to Chapter 7. Take the Chapter 7 means test calculator below to estimate whether you qualify for a Chapter 7 (including a Chapter 7 above median) and to compare your options

Use the Chapter 7 calculator below to estimate the cost in your city (based on your zip code) and the qualification based on your state.

2) Pros and Cons of Converting Chapter 13 to Chapter 7

There are pros and cons of converting Chapter 13 to Chapter 7. Before converting to Chapter 7, you should weigh all options for debt relief. In some cases, you might be able to lower your Chapter 13 payments or dismiss your Chapter 13 case and resolve your debt problems outside of bankruptcy. 
  1. A Chapter 7 bankruptcy is often less expensive and you can receive a discharge in as little as 120 days. You will see the Chapter 7 bankruptcy on your credit report for 10 years.
  2. A Chapter 13 bankruptcy is often much more expensive, and the discharge is often 3 or 5 years. You will see the Chapter 13 bankruptcy on your credit report for 7 years.
Use the Pros and Cons to Convert from Chapter 13 to Chapter 7 calculator to review the estimated costs based on your situation and review the pros and cons for each option.

3) Can I keep my house if I convert from Chapter 13 to Chapter 7?

Your property could be at risk if you convert to Chapter 7. When you take the Chapter 7 calculator above, please select analyst review for us to review the specific exemptions for your state. A careful analysis of the bankruptcy exemptions claimed in your Chapter 13 is required to determine if you have equity in assets that is not protected by bankruptcy exemptions.

Non-exempt equity in assets could result in the loss of property in Chapter 7. The Chapter 7 trustee sells a debtor’s property and uses the money to pay toward the debtor’s unsecured debts. Bankruptcy exemptions vary by state. Some states use federal bankruptcy exemptions, but other states have state-specific exemptions that debtors must use.  It would be wise to consult a bankruptcy attorney before converting to Chapter 7.

4) What is the Process to Convert a Chapter 13 to Chapter 7?

For a new conversion, you would need to have a new 341 meeting of the creditor's appearance. 
Documents needed to file in order to convert the bankruptcy case:
  1. Notice of Conversion
  2. Reaffirmation Agreements
  3. Amended Schedules
  4. Additional Creditors
  5. Notice of Intent
In addition, the new attorney would need the following documents when taking a case from another attorney
  1. Entry of Appearance
  2. Obtain all required pre-filing documents
  3. Motion and Order to Substitute Counsel

5) How long does it take to convert a Chapter 13 to a Chapter 7

There is no deadline for converting a Chapter 13 case to a Chapter 7 case. You can petition the court to convert your Chapter 13 to Chapter 7 at any time during your bankruptcy case. If you are almost finished with your Chapter 13 plan, you may want to consider staying in the Chapter 13 case.

6) How much does it cost to convert?

The filing fee for a Chapter 13 case is less than the filing fee for a Chapter 7 case. Therefore, you are required to pay the additional filing fee for conversion. The fee should be $25 to convert a Chapter 13 to a Chapter 7 case unless the filing fees for bankruptcy cases increase. You should always check with the bankruptcy court in your state to determine filing fees for various petitions and motions, including a motion to convert Chapter 13 to Chapter 7.

7) What happens to my secured debts in a converted Chapter 7?

Secured creditors have a lien on the property that secures the money you owe to the creditor. If you do not pay the debt payments, a secured creditor may repossess or foreclose to sell the collateral. Examples of secured debt include mortgages and car title loans. A bankruptcy does not get rid of secured liens. 

If you convert to Chapter 7, you must continue to pay secured debts or lose the property. If you are behind on your mortgage payments, you need to catch up on the mortgage payments immediately or work with your mortgage company to avoid foreclosure. Unless you can catch up on the mortgage payments, you might not be able to avoid losing your home in Chapter 7.

Your car loan could also be a problem. Most Chapter 13 plans “cram down” auto loans to reduce the amount owed on the secured debt. In most cases, the auto loan goes into default when you convert to Chapter 7. If you are not prepared to catch up on the auto loan, you could lose your vehicle. 

8) What happens to my unsecured debts after I convert to Chapter 7?

Unsecured debts that are eligible for a bankruptcy discharge (forgiveness of debt in bankruptcy) are eliminated in the Chapter 7 case. Examples of dischargeable debts include credit card debts, medical bills, some old income taxes, personal loans, some judgments, and old utility bills. If a debt is not dischargeable, the debt survives the Chapter 7 case, meaning you owe the debt even though you receive a discharge in Chapter 7.

Examples of non-dischargeable debts include alimony, child support, restitution, most taxes, most student loans, and debts owed to the government. We discuss how to handle back taxes in bankruptcy and student loan hardship discharges.

9) How long does it take to receive my bankruptcy discharge when I convert to Chapter 7?

If the Chapter 7 trustee abandons all property (does not sell any property), the case is referred to as a no-asset Chapter 7. A typical no-asset Chapter 7 case can be completed in about four to six months after converting from Chapter 13. 

Remember, you must complete your Debtor Education Course, if you have not done so in your Chapter 13 case, to receive a bankruptcy discharge.


Before doing anything, it is strongly recommended that you talk to your bankruptcy attorney before you stop making your Chapter 13 payments or take any actions regarding your bankruptcy case.

If you are trying to decide whether to file for bankruptcy relief, Ascend can help. We let you compare various debt-relief options, including Chapter 7, Chapter 13, and debt settlement. Before you decide on a specific debt relief option, let Ascend help you explore all options to find the option that works best for you. You can also take the Chapter 7 qualification and cost calculator to estimate your cost based on your zip code and your qualification based on your state.