How To Convert Chapter 13 Bankruptcy to Chapter 7 & What To Expect
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If you can no longer afford your Chapter 13 repayment plan, you may be able to convert to Chapter 7 for faster debt relief. The process is usually simple. You file a Notice of Conversion with the court, pay a $25 fee, and, once your case is converted, attend a new 341 meeting, Your Chapter 7 discharge typically happens about 60 days later, assuming no creditor objects. Switching chapters can affect your property, secured debts, and exemptions, so it’s important to understand the pros and cons. This guide explains how to convert, who qualifies, and what happens after the switch.
Written by Mae Koppes. Legally reviewed by Attorney Andrea Wimmer
Updated March 25, 2025
Can You Convert a Chapter 13 Bankruptcy to a Chapter 7?
Yes, you can convert a Chapter 13 bankruptcy to a Chapter 7, as long as you meet the eligibility requirements. The Bankruptcy Code allows you to switch “at any time.” This means you don’t have to complete your Chapter 13 repayment plan before making the change.
⚠️Upsolve's free filing tool can’t be used to convert from one chapter to another.
Each person’s circumstances are different, so it may be helpful to get some legal advice before switching. The best way to learn about Chapter 13 is to consult a bankruptcy attorney. Most offer free consultations, so there’s no cost to you to learn more about your options.
Common Reasons People Convert from Chapter 13 to Chapter 7
Many people convert from Chapter 13 to Chapter 7 because their financial situation has changed.
You may be experiencing job loss, mounting medical expenses, or facing foreclosure after falling behind on mortgage payments.If you can’t afford your Chapter 13 plan payments anymore, switching to Chapter 7 may allow you to still get debt relief without the long repayment plan.
That said, converting isn’t always automatic. You’ll need to qualify for a Chapter 7 discharge, which usually means passing the means test — a calculation that compares your income to your state’s median income. You’ll also need to meet other qualifying requirements as described in the next section.
Who Qualifies for a Chapter 13 to Chapter 7 Conversion?
Not everyone can convert from Chapter 13 to Chapter 7. Federal bankruptcy law limits how often you can receive a discharge, and your eligibility depends on when you last filed for bankruptcy.
To qualify for a Chapter 7 discharge after converting:
You must meet the Chapter 7 discharge rules, which often involve showing that you don’t have enough disposable income to continue your Chapter 13 repayment plan.
If you’ve already received a Chapter 7 discharge in the last eight years, you won’t be eligible for another one right away.
You may need court approval if you’ve converted before. If you’ve previously switched from one chapter to another, the court may require additional review before approving another conversion.
If you’re unsure whether you qualify, consider consulting a bankruptcy attorney to review your situation.
What Are the Pros and Cons of Converting From Chapter 13 to Chapter 7?
Converting your Chapter 13 case to Chapter 7 can be a smart move in some situations, but it’s not right for everyone. Here’s a breakdown of the key benefits and drawbacks.
Pros of Converting to Chapter 7
Converting to Chapter 7 can offer several benefits, especially if you’re struggling to keep up with your Chapter 13 payments. Here are some key advantages to consider:
✅ You get debt relief faster.
One of the biggest advantages of Chapter 7 is speed. Instead of making payments for 3–5 years in Chapter 13, you can complete Chapter 7 in about 3–4 months and get a fresh start sooner.
✅ You won't have to make monthly debt payments.
Chapter 13 requires you to make regular payments toward your repayment plan. If your financial circumstances have changed and you can’t keep up, switching to Chapter 7 eliminates that obligation.
✅ You can still get most of your debt discharged.
Even though you’re switching chapters, you’ll still be able to wipe out credit card balances, medical bills, personal loans, and most other unsecured debts.
✅ The general bankruptcy timeline stays the same.
Converting doesn’t reset your filing date. Your debts and assets still relate back to the original date you filed for Chapter 13. This can be helpful when dealing with the bankruptcy court or creditors.
Cons of Converting to Chapter 7
While Chapter 7 provides a quicker path to debt relief, it also comes with potential downsides. Before making the switch, it’s important to understand these possible drawbacks:
❌ You might lose your car or home.
If you originally filed Chapter 13 to catch up on missed mortgage or car loan payments, converting to Chapter 7 could put those assets at risk. Chapter 7 doesn’t offer the same ability to reorganize secured debts, and you may have to surrender property that isn’t protected by exemptions.
❌ Chapter 7 stays on your credit report longer.
A Chapter 7 bankruptcy stays on your credit report for up to 10 years, compared to 7 years for Chapter 13. This can impact your ability to get new credit, though many people start rebuilding their credit soon after discharge.
❌ You can't get a "super discharge" for certain debts.
Chapter 13 offers a broader discharge of debts than Chapter 7. Some debts that could have been wiped out in Chapter 13 may not be dischargeable in Chapter 7. This includes certain tax obligations or divorce-related debts.
❌ You'll have a new trustee and new paperwork to do.
Once you convert, a new Chapter 7 bankruptcy trustee takes over your case. You’ll need to submit updated financial documents and attend another 341 meeting of creditors.
How To Convert a Chapter 13 to Chapter 7 Bankruptcy
The Bankruptcy Code allows you to convert a Chapter 13 case to a Chapter 7 case at any time. In most cases, the process is straightforward and doesn’t require a court hearing.
Here’s the typically process for converting your case:
File a Notice of Conversion.
Pay the conversion fee.
Submit required bankruptcy forms and updates.
Attend a new 341 meeting of creditors.
Wait for case review and discharge.
If you have a bankruptcy lawyer, they can help you with the conversion process.
File a Notice of Conversion
To start the process, you (or your attorney) must file a Notice of Conversion with the bankruptcy court handling your case. Some courts require a motion instead, so check with your local bankruptcy court or an attorney.
Pay the Conversion Fee
You’ll need to pay a $25 conversion fee when filing your notice. This is the difference between the Chapter 7 filing fee ($338) and the Chapter 13 filing fee ($313).
Submit Required Forms and Updates
You typically won’t have to refile your entire bankruptcy petition, but you may need to update certain forms, including:
Statement of Intention: This form tells the court what you plan to do with secured property like your car or home (keep, surrender, or reaffirm — more on these below).
Schedules I & J (Income and Expenses): If your financial situation has changed, you may need to update these schedules.
Schedules D, E, and/or F (Debts): If you forgot to list a creditor in your original Chapter 13 filing or have post-petition debt that qualifies, you may need to amend these forms.
Current Statement of Monthly Income: Some courts require an updated means test upon conversion, while others don’t. Check with your court or attorney.
❗If you need to amend your creditor list (also called a creditor matrix), you may have to pay a $32 amendment fee.
Attend a New 341 Meeting of Creditors
Since a new trustee is assigned to your case, you’ll need to attend another 341 meeting of creditors. This is true even if you already attended one in Chapter 13. This is a routine step where the trustee reviews your case and asks basic financial questions.
Wait for Case Review and Discharge
Once your case is converted, the trustee will review your non-exempt property to determine if anything can be sold to pay creditors. Creditors also get a chance to object to your discharge.
Typically the court issues a discharge about 60 days after the deadline for creditor objections. The case stays open until the trustee finishes handling any required tasks.
What Happens to My Property if I Convert From Chapter 13 to Chapter 7?
When you convert your bankruptcy case from Chapter 13 to Chapter 7, all the property you owned when you originally filed still belongs to your bankruptcy estate. But that doesn’t mean you’ll lose everything.
Many people can protect some or all of their assets using bankruptcy exemptions. Exempt property is protected from creditors and the bankruptcy trustee, meaning you get to keep it.
However, if you own non-exempt property, the Chapter 7 trustee may sell it to repay your unsecured creditors. Whether this happens depends on your state’s exemption laws and what assets you had when you first filed Chapter 13.
Can You Keep Your Property If You Convert Chapter 13 to Chapter 7?
In many cases, you can keep your property after converting, but it depends on whether it’s protected by bankruptcy exemptions.
Because your original Chapter 13 filing date stays the same, your bankruptcy estate doesn’t change when you switch to Chapter 7. This means:
Any exemptions you claimed in Chapter 13 still apply in Chapter 7.
If you didn’t have non-exempt property when you filed Chapter 13, you likely won’t have any in the converted case.
If you did have non-exempt assets, the Chapter 7 trustee may sell them to pay creditors.
🔹 The good news? Any property you acquired after filing Chapter 13 is usually safe.
As long as you didn’t convert your case in bad faith (for example, to hide assets from creditors), the trustee generally can’t take property you obtained after your original bankruptcy filing date.
How a Chapter 13 to Chapter 7 Conversion Affects Your Mortgage and Car Loan
If you have a loan backed by collateral, like a mortgage or car loan, you’ll need to decide how to handle it. This is called secured debt.
Your options include:
Redeeming the property: You pay the lender a lump sum equal to the property’s current market value to keep it.
Surrendering the property: If you no longer want or can’t afford the asset, you can return it to the lender, and the remaining debt will be discharged.
Reaffirming the loan: You agree to continue making payments under the original terms (or new terms negotiated with the lender); this may require a reaffirmation hearing.
Reaffirming a car loan can sometimes be tricky in a converted case. If your Chapter 13 trustee wasn’t making payments on time, your car loan could be behind. This may lead to repossession risks, especially if the lender asks the court to lift the automatic stay to take back the vehicle.
What Happens to Debts Incurred After Filing Chapter 13?
Life doesn’t stop just because you filed for bankruptcy. If you take on new debt like unexpected medical bills after filing Chapter 13 but before converting to Chapter 7, there’s some good news. In most cases, the court will treat this debt as if it existed before you filed, meaning it can be wiped out when your Chapter 7 case is discharged. That means you usually don’t have to start over by dismissing your case and refiling.
That said, not all new debts are automatically included. If you need to take out a big loan, like financing a car or buying a house while in Chapter 13, you’ll need court approval first. The court wants to make sure you can still afford your Chapter 13 plan payments before taking on new financial obligations.
Bankruptcy Conversion FAQs
Converting from Chapter 13 to Chapter 7 can raise a lot of questions about costs, timelines, and what happens to your property. Here are some common questions and answers to help you navigate the process.
When Will I Get My Discharge if I Convert to Chapter 7 Bankruptcy?
After you convert, the court resets certain deadlines. Your new 341 meeting of creditors restarts the period for creditors to object to your discharge.
In most cases, the court issues a discharge about 60 days after the objection deadline passes. Your case might stay open longer if the trustee needs time to handle any other tasks.
How Much Does It Cost To Convert from Chapter 13 to Chapter 7?
The conversion fee is $25, which is the difference between the Chapter 7 filing fee ($338) and the Chapter 13 filing fee ($313).
How Long Does It Take To Convert a Chapter 13 to a Chapter 7?
The conversion process is usually quick, often taking just a few days to a few weeks after you file a Notice of Conversion and pay the $25 fee.
But your case won’t be discharged immediately. The Chapter 7 discharge typically happens about 60 days after your new 341 meeting, assuming there aren’t any complications.
Can I Keep My Car if I Convert My Chapter 13 to Chapter 7?
It depends on whether you’re current on your car loan and whether your car is protected by exemptions in your state. You usually have three options:
Reaffirm the loan (agree to keep paying).
Redeem the car (pay the lender its current value in a lump sum).
Surrender the car (give it back and have the debt discharged).
If you’re behind on payments, your lender may repossess the car after conversion unless you catch up or negotiate new terms. Learn more about each of these options in this article: Can I Keep My Car If I File Chapter 7 Bankruptcy?
Do I Have to Attend Another 341 Meeting After Converting to Chapter 7?
Yes. Since a new trustee takes over your case after conversion, you’ll need to attend another 341 meeting of creditors, even if you already attended one in Chapter 13. The meeting is usually brief and similar to your first one.
Let’s Summarize…
If your financial situation changes, you don’t have to stay in Chapter 13. Federal law gives you the right to convert to Chapter 7 as long as you meet the eligibility requirements. In most cases, you can switch at any time without starting over.
Once you convert, your case will follow the normal Chapter 7 timeline, and you can expect to receive a discharge about 90 days after conversion — just like in a standard Chapter 7 case.
