Converting Chapter 7 to Chapter 13 Bankruptcy in Raleigh, NC
Many individuals in Raleigh, NC, start their bankruptcy process by filing under Chapter 7 of the United States Bankruptcy Code. However, some may choose or need to convert their Chapter 7 bankruptcy to Chapter 13 for various reasons. Whether by choice or court order, switching from Chapter 7 to Chapter 13 can provide unique benefits and protect more of your assets. If you’re considering this conversion, the expertise of a Raleigh bankruptcy attorney is crucial to guide you through the process.
Key Differences Between Chapter 7 and Chapter 13 Bankruptcy
Understanding the differences between Chapter 7 and Chapter 13 is essential. Chapter 7 is designed for those with an income below the state median and often involves selling non-exempt property to pay off debts. Chapter 13, on the other hand, allows individuals with a regular income to keep their assets while creating a repayment plan to settle debts over three to five years.
Why Convert Chapter 7 to Chapter 13 in Raleigh, NC?
There are several reasons why someone may wish to convert their Chapter 7 bankruptcy to Chapter 13:
- Court Orders: Sometimes, the bankruptcy court will require the conversion if it finds that the filer is not eligible for Chapter 7.
- Preserving Assets: If a debtor undervalues or fails to disclose assets, converting to Chapter 13 allows them to keep the property while paying off debts.
- Avoiding Liquidation: Chapter 13 gives individuals the opportunity to reorganize their finances, protect their property, and stop foreclosure or repossession.
At Cameron Bankruptcy Law, our skilled Raleigh bankruptcy attorneys can help you navigate the complexities of converting your case. We’ll analyze your financial situation and work with you to determine whether converting to Chapter 13 is the best solution for your specific circumstances.
When Should You Consider Converting?
Several situations may make it beneficial to convert from Chapter 7 to Chapter 13:
- Underestimating Property Value: If you realize your property is worth more than originally stated, converting can help protect your assets.
- Failure to List Valuable Assets: If you accidentally forgot to include a valuable asset, Chapter 13 may prevent you from losing it.
- Discharging Specific Debts: Some debts that cannot be discharged under Chapter 7 may be eliminated under Chapter 13.
How to Convert Your Bankruptcy Case
The process of converting a Chapter 7 bankruptcy to Chapter 13 is generally straightforward in most courts. Here are the typical steps:
- File a Motion: Submit a motion to the bankruptcy court requesting permission to convert your case.
- Notify Interested Parties: Send the motion to creditors, trustees, and any other relevant parties.
- Attend a Hearing (if required): If there are no objections, the court may grant the conversion without a hearing. However, in some cases, a hearing might be necessary.
Navigating this process can be challenging, but an experienced Raleigh bankruptcy attorney can help ensure you follow the correct procedures and meet all requirements.
Get Expert Help from a Raleigh Bankruptcy Attorney
Bankruptcy can be overwhelming, but it can also provide a fresh start. If you’re considering converting your Chapter 7 bankruptcy to Chapter 13, it’s important to work with a trusted bankruptcy attorney. At Cameron Bankruptcy Law, we have the experience and knowledge to help you make the best decision for your financial future. We’ll guide you through the conversion process, represent your interests, and help you protect your assets.
Call our Raleigh bankruptcy attorney today to schedule a consultation and learn more about how we can help you with your bankruptcy case. Let us assist you in securing the fresh financial start you deserve.
