To convert Chapter 7 bankruptcy to Chapter 13 can have significant benefits, but it’s crucial to understand the process and the potential consequences before deciding. If you’ve already filed for Chapter 7 bankruptcy but are finding it difficult to discharge all of your debt or keep your assets, you may be able to convert your case to Chapter 13.
Converting your Chapter 7 to Chapter 13 bankruptcy here in the state of Michigan can be a complex process and may require the assistance of a bankruptcy attorney. Our bankruptcy lawyer in Walled Lake, Michigan, can help you navigate this conversion process. We can assist you with filing the motion to convert, guide the evidence required by the court, and help you understand the legal requirements and potential consequences of the conversion. We can also help you evaluate your financial situation and determine if it is the best option to convert Chapter 7 bankruptcy to Chapter.
Having a bankruptcy attorney by your side can ensure that your case is handled correctly, increase the chances of a successful conversion and help you achieve your financial goals.
Why Do I Need a Michigan Bankruptcy Lawyer?
A Michigan bankruptcy lawyer can provide valuable assistance if you are considering converting from Chapter 7 to Chapter 13 bankruptcy. Hammerschmidt Stickradt & Associates lawyers can help you with the following:
- Understanding the legal requirements: Hammerschmidt Stickradt & Associates lawyers can help you understand the legal obligations and paperwork involved in converting from Chapter 7 to Chapter 13 bankruptcy. We can guide you through the process and ensure that all the necessary documents are completed correctly and submitted on time.
- Evaluating your financial situation: We can help you evaluate your financial situation and determine if converting to Chapter 13 is the best option. We can also assist you in drafting a realistic repayment plan that is more likely to be approved by the court.
- Representation in court: We can represent you in court and ensure that your case is presented in the best possible light. We can also negotiate with creditors and the court on your behalf.
- Protecting your assets: Our lawyers can help you understand the impact of the conversion on your assets, such as your home or car, and assist you in protecting them.
- Experience: We have experience handling bankruptcy cases, and we can guide you through the process and provide advice on the best course of action.
- Personalized service: We are dedicated to providing individualized service to our clients and will work closely with you to understand your unique financial situation and help you achieve your financial goals.
Hiring a Michigan bankruptcy lawyer at Hammerschmidt Stickradt & Associates with these qualities can increase your chances of having a successful outcome in your case. Contact our Michigan bankruptcy lawyers today!
Converting Chapter 7 to Chapter 13 Bankruptcy
Converting your Chapter 7 to Chapter 13 bankruptcy in Walled Lake, Michigan, is a process that allows a debtor to change their bankruptcy case from a liquidation to a repayment plan. This can be done under certain circumstances and with the bankruptcy court’s approval.
Chapter 7 bankruptcy is a type of bankruptcy that allows individuals to discharge their unsecured debt, such as credit card debt and medical bills. However, in this type of bankruptcy, the debtor’s assets may be liquidated to pay off the creditors. On the other hand, Chapter 13 bankruptcy is a repayment plan that allows debtors to keep their assets and pay off their debt for three to five years.
What are the Things to Consider?
The following should be considered when considering converting a Chapter 7 bankruptcy to a Chapter 13 bankruptcy:
- Secured debt and assets: Keeping assets like a home or car
- Income: Whether it exceeds the threshold for Chapter 7
- Penalties and additional fees: Attorney fees, filing fees, and legal costs
- Credit score: The impact on the debtor’s credit score
- Legal advice: Consulting with an experienced bankruptcy attorney
- Repayment plan: The terms and monthly payment
- Debtor’s circumstances and assets: Evaluating current assets, debts, and prospects
- Impact on unsecured creditors: Paying a certain percentage of the debt
- Impact on taxes and non-dischargeable claims: Fines, taxes, and other claims
- Approval of the bankruptcy court: Ensure the debtor meets legal requirements and the repayment plan is feasible
What are the Processes to Convert Chapter 7 Bankruptcy to Chapter 13?
The process of converting a Chapter 7 bankruptcy to a Chapter 13 bankruptcy involves several steps that include:
- Filing a new bankruptcy petition with the court and providing information about your assets, debts, and income
- Preparing a new repayment plan and submitting it to the court for approval
- Working with a Chapter 13 trustee, making monthly payments, and overseeing the repayment plan
- Paying attorney fees and other legal costs
- Attending a confirmation hearing to determine the feasibility of the repayment plan
- Making payments under the approved repayment plan and attending credit counseling and financial management classes
- Completing the repayment plan and meeting all terms of the plan to close the case and receive a discharge of remaining unsecured debt
It is important to note that converting your Chapter 7 bankruptcy to a Chapter 13 will not discharge any fines, taxes, or claims that are not dischargeable in a Chapter 7 case. Consulting with an experienced bankruptcy attorney like the lawyers at Hammerschmidt Stickradt & Associates is critical in navigating the process and ensuring all legal requirements are met.
What are the Pros and Cons of Converting Your Chapter 7 to Chapter 13 Bankruptcy?
When considering converting a Chapter 7 to a Chapter 13 case, there are several pros and cons to consider.
Pros:
- It keeps your assets
- Your debt repayment is changed
- Benefits high-income debtors
- Protection from repossession or foreclosure
Cons:
- Additional costs incurred
- Non-dischargeable claims
- The negative impact on your credit score
- Requires the approval of the bankruptcy court and may be denied
Call our Michigan Bankruptcy Lawyer Now!
Converting your Chapter 7 to Chapter 13 bankruptcy case can be a beneficial option for debtors wishing to keep their assets, pay off their debt over some time, or prevent repossession of assets. It is crucial to consult with an experienced bankruptcy attorney to assist you in this process.
If you are contemplating converting your Chapter 7 to a Chapter 13 bankruptcy in Walled Lake, Michigan, Hammerschmidt Stickradt & Associates can help. Our competent attorneys will provide guidance and legal advice throughout the process. They will also help you prepare the bankruptcy petition, repayment plan, and necessary documents and negotiate with the creditors and the bankruptcy court to achieve the best outcome. Contact us today to schedule a free consultation and take the first step towards a fresh financial start.