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cortrightlaw, Attorney
Category: Bankruptcy Law
Satisfied Customers: 513
Experience:  Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
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Can a debtor file Chapter 13, then convert to Chapter 7 a week

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Can a debtor file Chapter 13, then convert to Chapter 7 a week later, then convert back to Chapter 13 3 months after that?

cortrightlaw : It is technically possibly as long as the debtor has not obtained a discharge on the chapter 7. Additionally there would need to be a good reason for doing so or the chapter 7 trustee could object to the conversion back to a 13.
cortrightlaw : If it appears the debtor is trying to play games or have a negative impact on the creditors it would be opposed.

The debtor had been working with his mortgage company to set up a loan modification. But the debtor gave up after several months of getting nowhere with the mortgage company and finally chose to file Chapter 13 to avoid a foreclosure. The day after filing, the mortgage company sent debtor a notice that he was eligible for loan modification and put him on a Trial Payment Plan. The debtor would prefer to resolve the mortgage default through the loan modification, but still wants to covert to Chapter 7 to discharge his unsecured debts. The fear the debtor has is that by converting out of Chapter 13, he gives up some power over the foreclosure process, and that the mortgage company could pull the plug on the loan modification after the Trial Payment Plan. Is an option here to convert to Chapter 7, obtain the discharge, then file another Chapter 13 if the mortgage company starts up the foreclosure process here (the only fear in this is that the


mortgage company claims they do not have to give notice to start the foreclosure process - so the sheriff's sale might take place before a new Chapter 13 could be filed)? Or what would be a good option here?

cortrightlaw : Just stay in the 13 until the modification is completed and then convert to a 7. You can convert to a 7 at anytime during the terming the 13 as long as you qualify. This way you will protect your he from the foreclosure.

If the debtor converts like this, would the attorney still get the full legal fee for doing a Chapter 13 filing? Or would he be required to refund a portion of the Chapter 13 legal fee since the Chapter 13 Plan was only partially carried out?

cortrightlaw : If you are talking about hiring an attorney to do you 13 he would get to keep the entire fee and likely charge you a small fee for the conversion to a 7.
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