Can I Change My Mind After Choosing to File Chapter 7 or Chapter 13 Bankruptcy?
Filing for bankruptcy is a big decision, and it’s normal to feel unsure about your choice, even after you’ve filed. Whether you originally chose Chapter 7 or Chapter 13, you may be wondering if you can change your mind after filing bankruptcy and switch to a different type.
The good news is that, in many cases, it’s possible. And whatever concerns you, we can help talk through it. Here’s what you need to know.
Switching From Chapter 13 to Chapter 7
If you filed for Chapter 13 bankruptcy, but now you’re struggling to keep up with your repayment plan, you may be able to convert your case to Chapter 7.
This can be helpful if:
- Your income has dropped and you can’t afford your monthly plan payments.
- Your financial situation changed because of job loss, medical bills, or other unexpected expenses.
- You now qualify for Chapter 7 based on the means test, which compares your income to your state’s median income.
To convert, your attorney will file a motion with the court. And once the court approves it, your case changes from a 3-5 year repayment plan to a Chapter 7 liquidation process.
You may still be able to protect your home, car, and other essentials through bankruptcy exemptions. But that’s something you’ll want to make sure to discuss well in advance with an experienced bankruptcy attorney.
Switching From Chapter 7 to Chapter 13
Sometimes, people start out in Chapter 7 bankruptcy but later decide they need the protections Chapter 13 offers. You might consider switching if:
- You’re facing foreclosure and want to catch up on missed mortgage payments.
- You want to keep property that might be sold in Chapter 7.
- You need more time to pay off certain priority debts, like child support or taxes, that Chapter 7 wouldn’t erase.
To convert, your attorney will need to show the court that you have a regular income and can afford a Chapter 13 repayment plan. If they approve your request, you’ll begin making monthly payments to a trustee and keep more control over your assets.
Can You Cancel a Bankruptcy Filing Altogether?
If you’ve filed for Chapter 13 bankruptcy but haven’t completed your case, you can usually request to dismiss it at any time. However, once you dismiss, creditors can resume collections. That includes foreclosures, repossessions, and lawsuits.
For Chapter 7 bankruptcy, dismissal is harder. Because Chapter 7 involves immediate debt forgiveness, judges typically require a strong reason. This might include a significant change in financial circumstances or an error in your original filing.
The Importance of Talking to an Attorney
In all of the above examples, a good bankruptcy attorney can help you avoid problems from the start. Sometimes people find they want to change bankruptcy chapters because they didn’t have the high-quality guidance they needed from their attorney.
That’s where we come in.
We always take the time to listen to our clients and understand their goals from the very beginning. Rarely do our clients want to change their bankruptcy chapter after they’ve made a decision, because we’ve talked through every possibility.
But that’s not the case for everyone. If you change your mind after filing bankruptcy, you need an attorney who knows the law inside and out. That’s the only way to protect your property, your goals, and your future.
Changing your bankruptcy strategy isn’t always straightforward, and your options depend on where you are in the process, your income, and your debts. We’ll review your situation, explain your rights, and help you choose the best path forward.
If you’re considering switching from Chapter 7 to Chapter 13, or the other way around, contact us today.
Our award-winning, compassionate attorneys will guide you through your options and help you make the decision that protects your future.