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

Yes, you can convert your Chapter 13 Bankruptcy to Chapter 7 Bankruptcy in the state of Virginia. Before you decide to make the conversion, there are several factors to consider. Chapter 13 Bankruptcy is often referred to as a “wage earner’s plan” and is designed for individuals who have a steady income but need to reorganize their debt payments. It allows individuals to keep their property, such as a home or car, while repaying creditors over a certain period of time. In contrast, Chapter 7 Bankruptcy is a form of liquidation bankruptcy. Through this type of bankruptcy, your non-exempt assets may be sold and the proceeds from the sale are used to pay back creditors. Your remaining unsecured debt is then discharged. Converting from Chapter 13 to Chapter 7 Bankruptcy can be beneficial if you are unable to meet the payment plan requirements of a Chapter 13 Bankruptcy. If you have sufficient income to pay back your creditors, but you are unable to maintain the payment plan, Chapter 7 Bankruptcy could be a better option. However, keep in mind that converting to Chapter 7 Bankruptcy will not discharge your secured debt, such as mortgage payments or car payments. Before making a decision to convert, it is recommended that you speak with a qualified bankruptcy attorney to discuss your options. An experienced attorney can evaluate your financial situation and provide legal guidance and advice.

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