The Short Answer
Yes, you can convert from one type of bankruptcy to another in most situations — but whether you qualify depends on two things: your current income and the reason you filed in the first place. If you're in Chapter 13 and your income has dropped significantly, converting to Chapter 7 is often possible. If you're in Chapter 7 and falling behind on a house or car payment, converting to Chapter 13 can help — as long as you have enough income to support a repayment plan. The right answer depends on your specific circumstances, which is why talking to a bankruptcy attorney before you act is critical.
The easy answer to the question of whether or not you can convert from one type of bankruptcy to another is: “Yes, most of the time.” Don’t you love those qualifiers? The best way to explain the “most of the time” is to provide examples of when you can and cannot convert a bankruptcy. However, to avoid making this too complex, we will not address converting if you have been in a previous Chapter 7 bankruptcy, since filing limitations will be addressed in another blog.
Conversion from/to Bankruptcy StatusExampleCan I Convert?
Chapter 13 bankruptcy to Chapter 7 bankruptcyI am in a Chapter 13 bankruptcy but I’ve lost my job. With my household income, I can’t afford to keep my house and/or car.Yes, you can convert to Chapter 7 bankruptcy and surrender or give up your house and/or car. This will eliminate the payments to the Chapter 13 Trustee but you will no longer be able to keep the house or car. However, this approach allows you to obtain a fresh financial start.
Chapter 13 bankruptcy to Chapter 7 bankruptcyI am in a Chapter 13 bankruptcy and my income has not changed. I’m just tired of making the bankruptcy payments to the Chapter 13 Trustee!Maybe (you knew this was coming)
No, If your income has not changed and you were required to file Chapter 13 bankruptcy because you did not qualify for Chapter 7 bankruptcy under the Means Test. You will most likely not qualify to convert to Chapter 7 bankruptcy in this example, but each bankruptcy case must be looked at individually.
Yes, If you were not behind on your house or car and your income allowed you to file Chapter 7 initially. In this case, you filed Chapter 13 because you wanted to pay something back to your creditors. In this example, you should qualify to convert to Chapter 7 bankruptcy.
No, If you filed Chapter 13 bankruptcy because you were behind on a house or car payment, you cannot convert to Chapter 7 and keep your house or car unless you have brought your payments current or modified your loans.
Chapter 7 bankruptcy to Chapter 13 bankruptcyI am currently in a Chapter 7 bankruptcy and have gotten behind on my house or car payment.Yes, as long as you have enough income to make the Chapter 13 payments along with your other monthly expenses.
No, if you do not have enough income to make the Chapter 13 plan payments along with your other monthly expenses. You must qualify to file a Chapter 13 bankruptcy by demonstrating you have income household income to make the
As with all bankruptcy issues, you should consult your bankruptcy attorney to determine if you qualify to convert your bankruptcy.
Key Takeaways
- Converting from Chapter 13 to Chapter 7 is often possible if your income has dropped and you can no longer afford your plan payments.
- If your income hasn't changed and you originally failed the Means Test, you almost certainly won't qualify to convert to Chapter 7.
- If you're in Chapter 7 and behind on your mortgage or car loan, converting to Chapter 13 can stop a foreclosure or repossession — provided you have enough income to fund a plan.
- Converting from Chapter 13 to Chapter 7 means giving up any asset you were trying to protect through your repayment plan, such as a home with past-due payments.
- If you originally chose Chapter 13 voluntarily — not because the Means Test required it — and your income still qualifies, converting to Chapter 7 is generally straightforward.
- Every conversion request is reviewed individually by the bankruptcy court, so the outcome is never automatic regardless of which direction you're converting.
Attorney Insight
The scenario I see backfire most often is someone in Chapter 13 who wants to convert to Chapter 7 simply because they're tired of making plan payments — without realizing they originally filed Chapter 13 because they failed the Means Test. Converting doesn't reset that math; if your income still exceeds the NC median and the Means Test still pushes you into Chapter 13, the court will likely deny the conversion or dismiss the case entirely. On the flip side, people converting from Chapter 7 to Chapter 13 to save a home often underestimate what a confirmable plan actually requires — you have to demonstrate reliable income sufficient to cover both the arrearage and your ongoing mortgage payment over 36 to 60 months. Getting that analysis wrong upfront is far more costly than the few weeks it takes to run the numbers correctly before filing the conversion motion.
