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Debtors retain an absolute right to file a request for conversion.
To convert Chapter 13 to a Chapter 7 file, a motion must be filed with
the Clerk and, after notice and hearing, the Court must approve the
conversion and sign an order of conversion. Be aware, to convert,
debtors must be qualified as a Chapter 7 debtor or the case will be
dismissed.
One of the most common reasons for Chapter 13 conversions is based
on the option to roll past dues mortgages, taxes, and other secured
payments into the plan. Trustees frequently repay past due amounts
first. Then, once the threat of tax seizure or foreclosure passes,
conversion allows for the remaining unpaid unsecured debts to be
discharge quickly and completely without further payment.
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