Converting Chapter 13
to Chapter 7 Bankruptcy

Your Right to Convert Under Section 1307(a)

Under 11 U.S.C. section 1307(a), a Chapter 13 debtor may convert the case to Chapter 7 at any time. 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.

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.

When Conversion May Be Denied

While the right to convert is strong, courts have recognized narrow exceptions:

• Prior conversion: If the case was already converted once (for example, from Chapter 7 to Chapter 13), section 1307(a) prohibits a second conversion back.
• Bad faith: 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 means test. However, this is the minority view and most circuits give broad deference to the debtor.
• Eligibility: If the debtor is not eligible for Chapter 7 relief (for example, received a Chapter 7 discharge within the past 8 years under section 727(a)(8)), the court may deny conversion.

Common Reasons to Convert

Debtors typically convert from Chapter 13 to Chapter 7 when their financial situation has changed and they can no longer maintain plan payments:

• Job loss or income reduction: If your income drops significantly, plan payments may become unaffordable. Rather than face dismissal for missed payments, conversion to Chapter 7 provides a path to discharge.
• Medical emergency or disability: Unexpected medical expenses or loss of ability to work can make plan completion impossible.
• Divorce or separation: Loss of a spouse's income contribution can undermine a two-income plan. See our guide on bankruptcy after divorce.
• Plan was unrealistic from the start: Some Chapter 13 plans are filed with overly optimistic income projections, particularly in cases involving high-volume firms that prioritize filing over feasibility.
• Simpler path to discharge: 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.

The Conversion Process

Converting from Chapter 13 to Chapter 7 involves these steps:

1. File a motion or notice to convert. 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.
2. Court enters the conversion order. Because the right is near-absolute, the court typically enters the order within days.
3. A Chapter 7 trustee is appointed. The Chapter 13 trustee is replaced by a Chapter 7 trustee who reviews your assets for non-exempt property.
4. New 341 meeting of creditors. You must attend a new meeting of creditors under the Chapter 7 rules, typically scheduled 30-45 days after conversion.
5. Means test review. Your current financial information is evaluated. The U.S. Trustee reviews your income to determine whether the Chapter 7 case constitutes abuse.
6. Discharge or further proceedings. If no objections are filed, discharge is entered approximately 60-90 days after the 341 meeting.

What Happens to Plan Payments Already Made

This is one of the most common concerns for debtors considering conversion:

• Payments already distributed to creditors by the Chapter 13 trustee cannot be recovered. Those payments reduced your debt balances.
• Undistributed funds held by the Chapter 13 trustee are returned to you, minus any administrative expenses (trustee fees, attorney fees already earned).
• Attorney fees: 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.

The Chapter 13 trustee files a final accounting and typically returns undistributed funds within 30-60 days of the conversion order.

Means Test Implications After Conversion

The means test becomes relevant after conversion, though it does not block the conversion itself:

• Income calculation period: 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 Ransom v. FIA Card Services but the question of the lookback period for converted cases remains circuit-dependent.
• Current income matters: If you are converting because of job loss or income reduction, your lower income likely helps you pass the means test.
• Above-median income: 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.

For state-specific median income figures, see the means test calculator.

What You Keep vs What You Lose

Timeline and Costs

Costs

• Court filing fee: No additional fee to convert from Chapter 13 to Chapter 7.
• Attorney fees: Varies. Some attorneys include conversion in the original retainer; others charge $500-$1,500 for the additional work. If you are pro se, see filing without a lawyer.
• Credit counseling: 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.

Frequently Asked Questions

Related Topics on This Site

• Chapter 13 to 7 / 7 to 13 Conversion Overview
• Converting Chapter 7 to Chapter 13
• Full Side-by-Side Comparison
• Means Test Explained
• Which Chapter Should I File?
• Keeping Property in Bankruptcy

Last updated: April 2026. Not legal advice.