Can I convert my Chapter 13 Bankruptcy to Chapter 7 Bankruptcy?

Yes, you can convert your Chapter 13 Bankruptcy to Chapter 7 Bankruptcy in South Carolina. This is possible under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. The Act allows debtors to convert their Chapter 13 cases to Chapter 7 cases if the debtor’s financial circumstances have changed and the debtor is no longer able to meet the repayment plan that was originally agreed upon. In order to convert, the debtor must file a motion with the court. The motion should explain why the conversion is necessary and what the impact on creditors is expected to be. If the court approves the motion, the Chapter 13 Bankruptcy will be converted to a Chapter 7 Bankruptcy. In Chapter 7 Bankruptcy, the debtor will be required to turn over any of their nonexempt assets to the bankruptcy trustee to reimburse creditors. In return, the debtor may receive a discharge from almost all their debts, allowing them to start a fresh financial start. The entire process typically takes three to four months. When deciding whether to convert a Chapter 13 Bankruptcy to a Chapter 7 Bankruptcy, it is important to understand the consequences. In some cases, creditors and the court may not agree with the conversion and they may not be willing to renegotiate the payments. Additionally, the bankruptcy trustee can challenge the conversion and there may be other obstacles as well. It is important to understand the risks before deciding to convert and consult with a lawyer for expert advice.

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