Can I convert my Chapter 13 bankruptcy to a Chapter 7? 5 Answers as of October 01, 2010I cannot pay my Chapter 13 payments. This is because I was laid off recently and cannot find any work anywhere. I was told that my best option would probably be to convert my Chapter 13 into a Chapter 7 bankruptcy. Is this my best option at this point?
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This can only be determined after a comprehensive consultation. There are simply insufficient facts here to answer your question as to whether it's your best option. Converting to Chapter 7 should be OK, but if you have non-exempt assets you could lose them. It also depends on how long you've been in the Ch. 13 and how many payments you've made. If you're only 1 month in, that's a problem. 42 months in, not a problem.
Answer Applies to: California