Can a Chapter 13 be "converted" to a 7 in AZ?

[help4mydebts]

Does anyone know if a Chapter 13 can be "converted" to a Chapter 7 in Arizona? Or do you have to have the 13 dismissed and then go to a 7?


Thank You!

[HHM]

Yes...this is not a state specific issue. A chapter 13 can be voluntarily converted to a 7 (anywhere) so long as the case was not converted from a 7 to a 13...and assuming you now qualify for chap 7.

[help4mydebts]

Thank you, HHM!

[BoxerLover]

One thing to note, elgibility for converting is based on the original file date of the chapter 13.

[IamOld]

One thing to note, elgibility for converting is based on the original file date of the chapter 13.

Are we absolutely certain? Because usually - from what I've seen here - converting a 13 to a 7 may mean that circumstances have changed - say last year I don't qualify for a 7 because I make too much - change jobs, whatever, now I qualify for 7 so I convert...

[HHM]

One thing to note, elgibility for converting is based on the original file date of the chapter 13.

Not necessarily true...the BK estate "relates" back to the original filing of the 13, so for ASSETS the original filing date is important. For example, if your mother bought you a car a year into 'your' chapter 13 and paid cash (and let's assume it would have non-exempt equity), and in year 2, you convert to a 7, that car is NOT part of the BK estate in the converted chapter 7 and cannot be taken by the chapter 7 trustee. For qualifying for chapter 7, the changed circumstances NOW is how you qualify. So, you need not have been eligible for chapter 7 at the original filing date of the 13 in order to convert a 13 to a 7.

[BoxerLover]

I apologize for the wrong answer, my attorneytold me that it did. Maybe that's just in Wisconsin?

[HHM]

Nope, your attorney is just lazy

[help4mydebts]

Okay, to make sure I am understanding this right...I cannot file a Chapter 7 until March of 2012...if I get sued for a medical bill between now and then, I can file a 13 and then in March convert it to a 7?? Or do I have to be in the 13 for a certain length of time?

Thanks so much! I appreciate your knowledge!

[HHM]

okay, let's back up, how is the March 2012 deadline coming into play?

Is there a prior BK...putting that in your original post would have been super helpful.

[help4mydebts]

I'm sorry, HHM. I am so stressed out about being sued...

Yes, we filed Chapter 7 back in March of 2004. We have not filed any type of BK since then.

[HHM]

I think you still can, I always forget this rule because it doesn't come up that often, but I believe you can file a chapter 13 now, then covert to chapter 7 after March 2012 and still get a chapter 7 discharge. But, now your attorney has a point, the date of filing "may" relate back to the chapter 13 filing...but the statute reads (727(a)(8) "...case commenced within 8 years before the date of the filing of the petition. The petition in question is the "chapter 7" petition that you are filing upon conversion (or, at least, that is how I would argue it) since the discharge you are seeking is a chapter 7 discharge not a chapter 13, so the petition in question is the chapter 7 petition and that petition is filed after 8 years etc etc. If congress intended the relation back to the original chapter 13 filing, the language should read "from the date the order for relief was entered", or some such wording.