Ch.13 to Ch.7: Section 1307(a)
Nearly absolute right. Case must not have been originally Ch.7. No additional fee.
- Income dropped -- plan unsustainable
- Plan failing -- facing dismissal
- Now qualify for Ch.7
Best exit: Delivers discharge in 3-4 months vs losing everything to dismissal.
Ch.7 to Ch.13: Section 706(a)
One-time right. Use when: assets at risk, need mortgage cure, means test challenge.
Converting from Chapter 7 to Chapter 13 is particularly useful when the Chapter 7 trustee identifies non-exempt assets that would be liquidated. By converting, you keep all your property and repay creditors through a 3-5 year plan instead. The conversion must be filed before the Chapter 7 discharge is entered. You can only convert once -- if you convert from 7 to 13 and then the Chapter 13 fails, you cannot convert back to 7.
The cost implications are significant. Converting from 7 to 13 means paying attorney fees for the Chapter 13, plan payments for 3-5 years, and the standing trustee's commission. Weigh this against the value of the assets you would lose in Chapter 7.
Hardship Discharge
Alternative under section 1328(b) if failure beyond your control.
A hardship discharge is available when circumstances beyond your control prevent plan completion -- such as a serious illness, job loss, or disability. The court requires that unsecured creditors received at least as much as they would have in a Chapter 7 liquidation. This is a narrow but important safety valve for debtors who made good-faith efforts but cannot finish the plan. See bankruptcyhardship.org for the full requirements.
Related
Last updated: March 2026. Not legal advice.
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