When you filed your Chapter 13 bankruptcy petition months ago, you were pretty sure that the rough financial patch you’d gone through was over. You had a steady income again and no unusual expenses, so you had confidence that reorganization of your debts would be enough to get you on your feet again.
Now, things have changed. Maybe the job market in your area is increasingly unstable and your spouse is not working now. Or perhaps your small business is struggling even worse than before. One of the kids may have developed some medical issues that require extensive therapy and treatment that isn’t entirely covered by your insurance.
Whatever the reason, you can’t keep up your payments to the bankruptcy court any longer.
Chapter 13 can easily convert to Chapter 7
As long as you haven’t had another bankruptcy discharged within the past eight years, you can convert a Chapter 13 bankruptcy to Chapter 7 at virtually any time (assuming that you meet the income limitations).
When considering the income limitations, or “means” test, the court will look at both your income and your expenses. If your income has dropped or your expenses have risen since you filed your Chapter 13 — or if your income was always below the means test — it most likely won’t be a problem.
You don’t have to go it alone
Financial problems can be frustrating, and sorting out exactly what steps you need to take to find a resolution isn’t easy without help. Turn to an experienced bankruptcy attorney here in East Brunswick for assistance.