Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
Hi - my name is ***** ***** I'll be glad to assist.
Yes, you can file a motion to convert the case from a chapter 13 to a chapter 7. Once the motion is filed, the court will enter an order granting the motion (assuming you can prove that you're unable to maintain the plan and that you're eligible for a chapter 7), and then you'd proceed with a liquidation plan.
Here's a good link you can read that outlines the process: http://www.alllaw.com/articles/nolo/bankruptcy/converting-case-from-chapter-13-chapter-7.html
The money that has already been paid to the creditors remains there....and would just reduce the balances of all of your debts in the chapter 7.
If the trustee has money that has not be distributed at the time of conversion, what happens to that money is a good question. .....some courts give it back to the debtor and some courts forward it to the creditors. So, it really depends on which court you're in as to what happens to that money. But, this issue has gone up to the US Supreme Court for review, so maybe we'll get a definitive answer soon.