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<div class="badge" style="background:#0d2137;border-color:#60a5fa;color:#60a5fa">Conversion</div>
<h1>Converting Chapter 13<br>to Chapter 7 Bankruptcy</h1>
<p class="subtitle">Your right to convert, when courts say no, the step-by-step process, and what happens to payments you have already made.</p>
</div>
<main id="main-content">
<nav class="breadcrumb-nav" aria-label="Breadcrumb"><a href="https://1328f.org">Home</a><span class="separator">›</span><a href="https://chapter7vs13.org/">Chapter7Vs13</a><span class="separator">›</span><span>Converting Chapter 13 to Chapter 7</span></nav>
<div class="content">
<div class="toc">
<h3>On This Page</h3>
<ul>
<li><a href="#right-to-convert">Your Right to Convert</a></li>
<li><a href="#when-denied">When Conversion May Be Denied</a></li>
<li><a href="#reasons">Common Reasons to Convert</a></li>
<li><a href="#process">The Conversion Process</a></li>
<li><a href="#plan-payments">What Happens to Plan Payments</a></li>
<li><a href="#means-test">Means Test After Conversion</a></li>
<li><a href="#keep-vs-lose">What You Keep vs What You Lose</a></li>
<li><a href="#timeline-costs">Timeline and Costs</a></li>
</ul>
</div>
<div class="section" id="right-to-convert"><h2>Your Right to Convert Under Section 1307(a)</h2>
<p>Under 11 U.S.C. section 1307(a), a Chapter 13 debtor may convert the case to <a href="https://whatischapter7.com/" title="Chapter 7">Chapter 7</a> <strong>at any time</strong>. This right is considered near-absolute - courts have consistently held that the debtor's right to convert is not discretionary with the court. You do not need to show cause, and the court generally cannot deny your request.</p>
<div class="callout green"><p><strong>Key point:</strong> The right to convert under section 1307(a) belongs to the debtor alone. Creditors and the trustee cannot force conversion to <a href="https://whatischapter7.com/" title="Chapter 7">Chapter 7</a> (though they can request <a href="https://dismissedbankruptcy.org/" title="dismissal">dismissal</a> or conversion under section 1307(c)).</p></div>
<p>There is one hard statutory limitation: if the case was originally filed under another chapter and already converted to Chapter 13, the debtor cannot convert again. Section 1307(a) applies only to cases that have not been previously converted under sections 706, 1112, or 1208.</p>
</div>
<div class="section" id="when-denied"><h2>When Conversion May Be Denied</h2>
<p>While the right to convert is strong, courts have recognized narrow exceptions:</p>
<ul>
<li><strong>Prior conversion:</strong> If the case was already converted once (for example, from Chapter 7 to Chapter 13), section 1307(a) prohibits a second conversion back.</li>
<li><strong>Bad faith:</strong> Some courts deny conversion when the debtor is acting in bad faith - for example, converting solely to avoid a pending motion for sanctions or to manipulate the timing of the <a href="https://meanstest.org/" title="means test">means test</a>. However, this is the minority view and most circuits give broad deference to the debtor.</li>
<li><strong>Eligibility:</strong> If the debtor is not eligible for Chapter 7 relief (for example, received a Chapter 7 <a href="https://dischargebar.org/" title="discharge">discharge</a> within the past 8 years under <a href="https://dischargebar.org" title="Discharge Bar Periods - Open Bankruptcy Project">section 727(a)(8)</a>), the court may deny conversion.</li>
</ul>
<div class="callout orange"><p><strong>Practice note:</strong> Even where bad faith is alleged, most courts convert the case and allow the U.S. Trustee to address abuse through a section 707(b) motion in the converted Chapter 7 case.</p></div>
</div>
<div class="section" id="reasons"><h2>Common Reasons to Convert</h2>
<p>Debtors typically convert from Chapter 13 to Chapter 7 when their financial situation has changed and they can no longer maintain plan payments:</p>
<ul>
<li><strong>Job loss or income reduction:</strong> If your income drops significantly, plan payments may become unaffordable. Rather than face <a href="https://dismissedbankruptcy.org/" title="dismissal">dismissal</a> for missed payments, conversion to Chapter 7 provides a path to <a href="https://dischargebar.org/" title="discharge">discharge</a>.</li>
<li><strong>Medical emergency or disability:</strong> Unexpected medical expenses or loss of ability to work can make plan completion impossible.</li>
<li><strong>Divorce or separation:</strong> Loss of a spouse's income contribution can undermine a two-income plan. See our guide on <a href="/bankruptcy-after-divorce.html">bankruptcy after divorce</a>.</li>
<li><strong>Plan was unrealistic from the start:</strong> Some Chapter 13 plans are filed with overly optimistic income projections, particularly in cases involving <a href="https://bankruptcymill.com" title="Bankruptcy Mill Research - Open Bankruptcy Project">high-volume firms</a> that prioritize filing over feasibility.</li>
<li><strong>Simpler path to discharge:</strong> If your financial picture has changed and you now qualify for Chapter 7, converting eliminates 3-5 years of plan payments in favor of a discharge in approximately 4 months.</li>
</ul>
</div>
<div class="section" id="process"><h2>The Conversion Process</h2>
<p>Converting from Chapter 13 to Chapter 7 involves these steps:</p>
<ol>
<li><strong>File a motion or notice to convert.</strong> In most districts, conversion under section 1307(a) is done by filing a one-page notice (not a motion requiring a hearing). Some districts require a motion. Check your local rules.</li>
<li><strong>Court enters the conversion order.</strong> Because the right is near-absolute, the court typically enters the order within days.</li>
<li><strong>A Chapter 7 trustee is appointed.</strong> The Chapter 13 trustee is replaced by a Chapter 7 trustee who reviews your assets for non-exempt property.</li>
<li><strong>New 341 <a href="https://341meeting.org/" title="341 meeting">meeting of creditors</a>.</strong> You must attend a new <a href="https://341meeting.org/" title="341 meeting">meeting of creditors</a> under the Chapter 7 rules, typically scheduled 30-45 days after conversion.</li>
<li><strong><a href="https://meanstest.org/" title="means test">Means test</a> review.</strong> Your current financial information is evaluated. The U.S. Trustee reviews your income to determine whether the Chapter 7 case constitutes abuse.</li>
<li><strong>Discharge or further proceedings.</strong> If no objections are filed, discharge is entered approximately 60-90 days after the 341 meeting.</li>
</ol>
<div class="callout"><p><strong>Updated schedules:</strong> You may need to file updated schedules reflecting your current financial situation at the time of conversion. Your attorney (or the court) will advise whether amended schedules are required in your district.</p></div>
</div>
<div class="section" id="plan-payments"><h2>What Happens to Plan Payments Already Made</h2>
<p>This is one of the most common concerns for debtors considering conversion:</p>
<ul>
<li><strong>Payments already distributed to creditors</strong> by the Chapter 13 trustee cannot be recovered. Those payments reduced your debt balances.</li>
<li><strong>Undistributed funds</strong> held by the Chapter 13 trustee are returned to you, minus any administrative expenses (trustee fees, attorney fees already earned).</li>
<li><strong>Attorney fees:</strong> If your Chapter 13 attorney was being paid through the plan, any unpaid portion may need to be renegotiated or a new fee agreement reached for the Chapter 7 case.</li>
</ul>
<p>The Chapter 13 trustee files a final accounting and typically returns undistributed funds within 30-60 days of the conversion order.</p>
</div>
<div class="section" id="means-test"><h2>Means Test Implications After Conversion</h2>
<p>The <a href="https://bankruptcymeanstest.org" title="Bankruptcy Means Test Calculator - Open Bankruptcy Project">means test</a> becomes relevant after conversion, though it does not block the conversion itself:</p>
<ul>
<li><strong>Income calculation period:</strong> Courts are split on whether to use the 6-month lookback from the original filing date or from the conversion date. The Supreme Court addressed this in <em>Ransom v. FIA Card Services</em> but the question of the lookback period for converted cases remains circuit-dependent.</li>
<li><strong>Current income matters:</strong> If you are converting because of job loss or income reduction, your lower income likely helps you pass the means test.</li>
<li><strong>Above-median income:</strong> If your income still exceeds your state's median, the U.S. Trustee may file a motion to dismiss under section 707(b). This does not mean automatic dismissal - you can rebut the presumption of abuse with evidence of special circumstances.</li>
</ul>
<p>For state-specific median income figures, see the <a href="https://bankruptcymeanstest.org">means test calculator</a>.</p>
</div>
<div class="section" id="keep-vs-lose"><h2>What You Keep vs What You Lose</h2>
<table class="data-table">
<thead><tr><th>Factor</th><th>Chapter 13</th><th>Chapter 7 (after conversion)</th></tr></thead>
<tbody>
<tr><td>Non-exempt assets</td><td class="good">Protected - paid through plan</td><td class="bad">Subject to liquidation by trustee</td></tr>
<tr><td>Home in foreclosure</td><td class="good">Can cure arrears through plan</td><td class="bad">No mechanism to cure arrears</td></tr>
<tr><td>Car with negative equity</td><td class="warn">Paid through plan (<a href="https://section1192.org/" title="cramdown">cramdown</a> possible)</td><td class="warn">Reaffirm, redeem, or surrender</td></tr>
<tr><td>Tax debts</td><td class="good">Paid through plan (priority)</td><td class="warn">Recent taxes survive discharge</td></tr>
<tr><td>Time to discharge</td><td class="bad">3-5 years</td><td class="good">~4 months after conversion</td></tr>
<tr><td>Monthly payments</td><td class="bad">Required for plan duration</td><td class="good">No ongoing payments</td></tr>
</tbody></table>
<div class="callout red"><p><strong>Critical consideration:</strong> If you originally filed Chapter 13 to protect a home from foreclosure or to keep non-exempt assets, converting to Chapter 7 means losing those protections. Consult with an attorney before converting if you have significant assets at stake.</p></div>
</div>
<div class="section" id="timeline-costs"><h2>Timeline and Costs</h2>
<table class="data-table">
<thead><tr><th>Step</th><th>Typical Timeline</th></tr></thead>
<tbody>
<tr><td>File notice/motion to convert</td><td>1-3 days to prepare</td></tr>
<tr><td>Court enters conversion order</td><td>1-14 days</td></tr>
<tr><td>New 341 meeting scheduled</td><td>30-45 days after conversion</td></tr>
<tr><td>Objection deadline</td><td>60 days after 341 meeting</td></tr>
<tr><td>Discharge entered</td><td>~60-90 days after 341 meeting</td></tr>
<tr><td><strong>Total from conversion to discharge</strong></td><td><strong>3-5 months</strong></td></tr>
</tbody></table>
<h3>Costs</h3>
<ul>
<li><strong>Court filing fee:</strong> No additional fee to convert from Chapter 13 to Chapter 7.</li>
<li><strong>Attorney fees:</strong> Varies. Some attorneys include conversion in the original retainer; others charge $500-$1,500 for the additional work. If you are <a href="https://prosebankruptcy.org/" title="pro se">pro se</a>, see <a href="https://filebankruptcywithoutlawyer.com">filing without a lawyer</a>.</li>
<li><strong><a href="https://bankruptcyfreshstart.org/" title="credit counseling">Credit counseling</a>:</strong> If you already completed the pre-filing course, you do not need to retake it. You will still need the debtor education course before discharge if not already completed.</li>
</ul>
</div>
<div class="section"><h2>Frequently Asked Questions</h2>
<div class="faq-item">
<div class="faq-q">Can I convert my Chapter 13 to Chapter 7 at any time?</div>
<div class="faq-a">Under 11 U.S.C. section 1307(a), a debtor has a near-absolute right to convert from Chapter 13 to Chapter 7 at any time before confirmation. After confirmation, the right still exists but courts may scrutinize the request for bad faith. The case cannot have been previously converted from Chapter 7.</div>
</div>
<div class="faq-item">
<div class="faq-q">What happens to <a href="https://chapter13plan.org/" title="Chapter 13 plan">Chapter 13 plan</a> payments already made when I convert?</div>
<div class="faq-a">Payments already distributed to creditors by the trustee cannot be recovered. Undistributed funds held by the Chapter 13 trustee are returned to you after deducting administrative expenses. The trustee typically files a final report and returns remaining funds within 30-60 days.</div>
</div>
<div class="faq-item">
<div class="faq-q">Do I have to pass the means test to convert Chapter 13 to Chapter 7?</div>
<div class="faq-a">The means test does not block the conversion itself. However, after conversion, the U.S. Trustee or a creditor may file a motion to dismiss the Chapter 7 case for abuse under section 707(b) if your income exceeds the state median. Courts use your current income at the time of conversion, not when you originally filed.</div>
</div>
<div class="faq-item">
<div class="faq-q">Does converting from Chapter 13 to Chapter 7 cost anything?</div>
<div class="faq-a">There is no additional court filing fee to convert from Chapter 13 to Chapter 7. Your attorney may charge additional fees for handling the Chapter 7 portion of the case, typically $500-$1,500.</div>
</div>
<div class="faq-item">
<div class="faq-q">Can I keep my property if I convert to Chapter 7?</div>
<div class="faq-a">Chapter 7 uses a liquidation model, so non-exempt property may be sold by the trustee. If you were using Chapter 13 to protect assets that exceed exemption limits, converting to Chapter 7 puts those assets at risk. Most Chapter 7 cases are no-asset cases, but review your <a href="https://bankruptcyexemptionsbystate.com/" title="exemptions">exemptions</a> carefully before converting.</div>
</div>
</div>
<div class="section"><h2>Related Topics on This Site</h2><ul>
<li><a href="/conversion.html">Chapter 13 to 7 / 7 to 13 Conversion Overview</a></li>
<li><a href="/convert-chapter-7-to-chapter-13.html">Converting Chapter 7 to Chapter 13</a></li>
<li><a href="/comparison.html">Full Side-by-Side Comparison</a></li>
<li><a href="/means-test.html">Means Test Explained</a></li>
<li><a href="/which-chapter.html">Which Chapter Should I File?</a></li>
<li><a href="/keep-property.html">Keeping Property in Bankruptcy</a></li>
</ul></div>
<div class="section">
<p style="font-size:13px;color:#888">Last updated: April 2026. Not legal advice.</p>
<span class="rules-badge">Part of the Open Bankruptcy Project</span>
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