In Georgia, can I Change my Bankruptcy From Chapter 13 to Chapter 7 if my Financial Situation Worsens?

If you filed Chapter 13 in Atlanta, Georgia, and you have a change in circumstances, you can convert your case to a Chapter 7. Thus, if you lose your job or have a reduction in income or an increase in expenses, you may ask the Court to change your case from a Chapter 13 repayment plan to a Chapter 7.

A debtor in a Chapter 13 bankruptcy plan has the right to convert his or her bankruptcy case to a Chapter 7 case. In fact, it is not uncommon for debtors whose financial situation worsens to convert a case from a Chapter 13 to a Chapter 7. However, to ensure that a Chapter 7 filing is proper, the debtor must meet the qualifications set forth by the bankruptcy means test in Georgia (which requires debtors to earn below a certain amount of income in order to qualify for Chapter 7).

The procedure to convert from Chapter 13 to Chapter 7 requires the filing of a “Notice to Convert” with the bankruptcy court. As long as the debtor is qualified for Chapter 7, most conversions are not challenged.

One important factor that a debtor looking to convert from Chapter 13 to Chapter 7 may consider is whether s/he has property that is completely protected by bankruptcy exemptions in Georgia. One of the reasons a debtor could have filed Chapter 13 in the first place is to protect his property from sale by a Chapter 7 trustee.

The decision whether or not to file for bankruptcy and which type of bankruptcy to proceed with is an important one. If you are considering filing for bankruptcy in Atlanta, Georgia, please contact the Law Offices of Charles Clapp at (404) 585-0040 or for a free initial consultation.