Home / Uncategorized / What kind of issues would you consider when trying to decide whether to convert a Chapter 13 to a Chapter 7 bankruptcy vs dismissing the Chapter 13 and refiling a new chapter 7?

What kind of issues would you consider when trying to decide whether to convert a Chapter 13 to a Chapter 7 bankruptcy vs dismissing the Chapter 13 and refiling a new chapter 7?

There are a number of factors that must be taken into consideration including the following:

1. Time since prior discharge.

2. The Means Test.

3. Whether a married couple has filed jointly or singly and now wants to reconsider.

4. The limited 30 day stay on a refile.

5. The balance on secured cram downs and/or redemptions.

6. Any subsequent foreclosure.

7. Good / bad faith issues.

8. The ability to obtain a Chapter 13 hardship discharge.

9. The ability to obtain a Chapter 13 super discharge.

10. The ability to obtain a super discharge.

11. Priority debt status.

12. Liquidation analysis.

From this post you can see that a decision to convert a Chapter 13 to a Chapter 7 or to dismiss a Chapter 13 and refile a Chapter 7 involve very complex issues and require an advanced degree of analysis.