You may want to convert from a Chapter 7 to a Chapter 13 for the following reasons.
- You failed the chapter 7 means test- Everyone who files for a chapter 7 has to pass the means test. The means test is geared towards weeding out people with high income, ie individuals that can pay off some of their debt.
- You have nondischargeable priority debts - When you have these kinds of debts such as alimony or child support payments, or some tax obligations, you cannot receive a discharge on them. Hence, it would be a better option to file for a chapter 13, where you can make these payments through your repayment plan.
- You have non-exempt property - In a chapter 7 bankruptcy, your nonexempt property will be sold to pay off your creditors. If you want to keep your nonexempt property, a chapter 13 may be a better option, as through your repayment plan, you can pay your creditors and keep your property.
- You want to catch up on your car payments or mortgage - A chapter 7 doesn’t allow you to catch up on missed mortgage or car payments. In this case, your creditor could request and receive relief off your automatic stay. This could result in you being foreclosed. A chapter 13, on the other hand, allows you make payments through your repayment plan, which could allow you to save your home or car.
