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dylatess, Attorney
Category: Bankruptcy Law
Satisfied Customers: 5142
Experience:  37 plus years of experience specializing in bankruptcy law
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I am in chapter 13, I am going to quit my job. Can I convert

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I am in chapter 13, I am going to quit my job. Can I convert to a chapter 7 if I quit? What happens to the money I have already my car and my $10,000 wildcard exemption (state of MI). We are saving it for moving expenses and down payment since we are giving up our house, and we will have to rent a new one. Does the cash I have saved under the exemption go to my case when I convert to a 7?
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  dylatess replied 4 years ago.
Over 33 years, I have assisted my clients with debt problems having filed more than 32000 Chapter 7 and Chapter 13 Bankruptcy petitions. YES you can covert. However, any moneys that you have paid to the Chapter 13 trustee has or will be disbursed to your creditors. Therefore, the BK will wipe out the remaining owing to your creditors. As to the wildcard exemption, that protects your assets like the money you have saved. So as long as your assets do not exceed the wild card exemption, you will not lose anything if you convert. Finally, if you do not ahve an attorney, i strongly suggest that you get an attorney for the conversion to make sure you elect the right exemptions.

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