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Why Convert From Chapter 7 to Chapter 13?
Converting from Chapter 7 to Chapter 13 is a strategic move that allows debtors to shift from a liquidation case to a repayment plan case. The most common reasons:
- Save your home from foreclosure: Chapter 13 allows you to cure mortgage arrears over 3-5 years while keeping your home. Chapter 7 provides no mechanism to catch up on missed payments.
- Protect non-exempt assets: If the Chapter 7 trustee identifies property that exceeds your exemption limits, converting to Chapter 13 lets you keep that property by paying its non-exempt value through the plan.
- Stop vehicle repossession: Chapter 13 allows you to cure arrears on car loans and may allow cramdown of the loan balance to the vehicle's current value.
- Address non-dischargeable debts: Certain debts like recent tax obligations and domestic support can be structured into a manageable payment plan.
- Avoid means test dismissal: If the U.S. Trustee files a motion to dismiss your Chapter 7 for abuse under section 707(b), converting to Chapter 13 resolves that issue.
Key advantage: In Chapter 13, you keep all your property. Instead of liquidation, you pay creditors the value of non-exempt assets through your plan over 3-5 years.
Your Right Under Section 706(a)
Under 11 U.S.C. section 706(a), a debtor may convert a Chapter 7 case to Chapter 13 at any time, provided:
- The case has not been previously converted to Chapter 7 from Chapter 11, 12, or 13.
- The debtor is eligible for Chapter 13 relief (see eligibility requirements below).
Like the reverse conversion right under section 1307(a), this right belongs exclusively to the debtor. Creditors and the trustee cannot force conversion to Chapter 13 (though the court can convert to Chapter 13 under section 706(b) if the debtor consents).
Timing matters: While there is no statutory deadline, you should convert before the Chapter 7 trustee sells your assets. Once property is liquidated, conversion cannot undo the sale.
Eligibility Requirements for Chapter 13
To convert to Chapter 13, you must meet these requirements:
- Regular income: You need a source of regular income sufficient to fund a repayment plan. This includes wages, self-employment income, Social Security, pension, or even regular contributions from a spouse or family member.
- Debt limits (as of 2026): Your total noncontingent, liquidated debts must be less than $2,750,000 (combined secured and unsecured). This limit was updated by the Bankruptcy Threshold Adjustment and Technical Corrections Act.
- Current on tax filings: You must have filed all required tax returns for the 4 years preceding your bankruptcy case.
- No prior conversion: The case cannot have been previously converted to Chapter 7 from another chapter.
The Conversion Process
- File a motion to convert. Your attorney files a motion under section 706(a). Unlike the near-automatic conversion from Chapter 13 to 7, some courts require a brief hearing.
- Court enters conversion order. The court reviews eligibility and enters the order, typically within 1-2 weeks.
- Chapter 13 trustee assigned. The Chapter 7 trustee is replaced by a standing Chapter 13 trustee.
- File a Chapter 13 plan. You must file a proposed repayment plan within the deadline set by local rules (typically 14 days after conversion).
- New 341 meeting of creditors. A new meeting is scheduled under Chapter 13 rules.
- Confirmation hearing. The court holds a hearing to confirm your plan, usually 20-45 days after the 341 meeting.
- Begin plan payments. Payments typically begin 30 days after filing the plan, even before confirmation.
Saving Your Home Through Conversion
This is the single most powerful reason to convert from Chapter 7 to Chapter 13. Here is how it works:
- Cure mortgage arrears: Chapter 13 allows you to spread missed mortgage payments over the life of the plan (3-5 years) while maintaining current payments going forward.
- Automatic stay protection: The automatic stay under section 362 halts foreclosure proceedings immediately upon conversion.
- Strip junior liens: If your home is worth less than the first mortgage balance, Chapter 13 may allow you to strip (remove) junior liens entirely.
Example: If you owe $200,000 on your mortgage, are $12,000 behind on payments, and the Chapter 7 trustee cannot help, converting to Chapter 13 lets you spread that $12,000 over 60 months ($200/month) while keeping your home.
Protecting Non-Exempt Assets
In Chapter 7, the trustee can sell any property that exceeds your state's exemption limits. Converting to Chapter 13 eliminates this risk:
| Scenario | Chapter 7 Outcome | Chapter 13 Outcome |
|---|---|---|
| $15,000 in non-exempt home equity | Trustee may force sale | Pay $15,000 through plan over 3-5 years |
| Second vehicle over exemption | Trustee sells vehicle | Keep vehicle, pay value through plan |
| Tax refund above exemption | Trustee takes refund | Refund included in plan payments |
| Inheritance received during case | Trustee claims inheritance | Pay value through plan |
Timeline and Costs
| Step | Typical Timeline |
|---|---|
| File motion to convert | 1-5 days to prepare |
| Court enters conversion order | 1-2 weeks |
| File Chapter 13 plan | Within 14 days of conversion (varies by district) |
| New 341 meeting | 30-45 days after conversion |
| Confirmation hearing | 20-45 days after 341 meeting |
| Plan payments begin | 30 days after plan filing |
| Plan duration | 3-5 years |
Costs
- Court filing fee: No additional fee to convert from Chapter 7 to Chapter 13.
- Attorney fees: Chapter 13 attorney fees are typically $3,000-$5,000, but most can be paid through the plan. If your Chapter 7 attorney does not handle Chapter 13 cases, you may need to retain new counsel.
- Plan payments: Monthly payments are determined by your disposable income and the amount owed to creditors. Use the means test calculator to estimate.
Frequently Asked Questions
Can I convert from Chapter 7 to Chapter 13?
Yes. Under 11 U.S.C. section 706(a), a debtor may convert a Chapter 7 case to Chapter 13 at any time, provided the case has not been previously converted to Chapter 7 from another chapter. You must also be eligible for Chapter 13.
Why would someone convert from Chapter 7 to Chapter 13?
Common reasons include saving a home from foreclosure by curing mortgage arrears through a repayment plan, protecting non-exempt assets from liquidation, stopping a vehicle repossession, or addressing debts that would not be discharged in Chapter 7.
Is there a deadline to convert from Chapter 7 to Chapter 13?
The statute does not set a specific deadline, but the right exists only while the Chapter 7 case is open. Once discharge is entered and the case is closed, conversion is no longer possible. Convert before the trustee liquidates any assets.
Does converting from Chapter 7 to Chapter 13 cost anything?
There is no additional court filing fee to convert. However, Chapter 13 requires a repayment plan and typically involves higher attorney fees ($3,000-$5,000), most of which can be paid through the plan itself.
Can I convert to Chapter 13 to stop the trustee from selling my property?
Yes. This is one of the most common reasons for converting. In Chapter 13, you keep your property and pay creditors the value of non-exempt assets through the plan over 3-5 years, rather than surrendering property for immediate liquidation.
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Last updated: April 2026. Not legal advice.
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