Can You Switch from Chapter 7 to Chapter 13?

If you’ve already filed for Chapter 7 bankruptcy but are reconsidering your options, you may be wondering: Can you switch from Chapter 7 to Chapter 13? The answer is yes—in many cases, you can convert your bankruptcy case depending on your circumstances.

For individuals in Tacoma and throughout Washington State, this option can provide greater flexibility, especially if your financial situation has changed or you want to protect certain assets. At the Law Offices of David Smith, PLLC, we help clients evaluate whether converting their case is the right move and guide them through the process with clarity and confidence.

Understanding the Difference Between Chapter 7 and Chapter 13

Before exploring conversion, it’s important to understand how these two types of bankruptcy differ:

Chapter 7 Bankruptcy focuses on discharging unsecured debts like credit cards and medical bills, often in a relatively short timeframe. However, it may involve liquidation of certain assets.
Chapter 13 Bankruptcy allows you to keep your property while repaying debts through a structured plan over 3 to 5 years.

Switching from Chapter 7 to Chapter 13 can be beneficial if your goals or financial situation have changed.

Can You Convert from Chapter 7 to Chapter 13?

Yes, under federal bankruptcy law, you may convert your Chapter 7 case to Chapter 13 if you meet the eligibility requirements.

To qualify for conversion, you must:

Have a regular source of income
Meet Chapter 13 debt limits
Be able to propose a feasible repayment plan

The court will review your request to ensure that conversion is appropriate and made in good faith.

Common Reasons to Switch to Chapter 13

Many individuals in Washington choose to convert their case for practical reasons, including:

1. You Want to Keep Your Property

Chapter 7 may require the sale of non-exempt assets. Switching to Chapter 13 can allow you to protect your home, vehicle, or other valuable property while repaying debts over time.

2. You’re Facing Foreclosure

If you fall behind on mortgage payments after filing Chapter 7, converting to Chapter 13 can help you stop foreclosure and catch up on missed payments through a structured plan.

3. Your Financial Situation Has Improved

If your income has increased since filing, you may now be in a position to manage a repayment plan under Chapter 13.

4. You Need to Address Secured Debts

Chapter 13 can help you reorganize secured debts like car loans or mortgages, giving you more time to bring accounts current.

5. You Want to Stop Wage Garnishment or Collections

Chapter 13 provides ongoing protection from creditors while you follow your repayment plan.

How the Conversion Process Works

Switching from Chapter 7 to Chapter 13 involves several steps:

Filing a Motion to Convert with the bankruptcy court
Submitting updated financial information, including income and expenses
Proposing a repayment plan that meets court requirements
Attending hearings, if required

Working with an experienced Tacoma bankruptcy attorney can help ensure that your paperwork is accurate and your plan is realistic.

At the Law Offices of David Smith, PLLC, we assist clients through every stage of conversion, making the process as smooth as possible.

Important Considerations Before Switching

While conversion can be beneficial, it’s not always the right choice for everyone. You should consider:

Whether you can afford monthly payments under a Chapter 13 plan
The length of commitment (3 to 5 years)
Whether your goals align better with debt discharge or repayment

Our team takes the time to review your situation and explain your options clearly so you can make an informed decision.

Get Guidance You Can Trust

Deciding whether to switch from Chapter 7 to Chapter 13 is a significant financial decision. The right strategy depends on your goals, income, and the assets you want to protect.

The Law Offices of David Smith, PLLC is committed to helping individuals in Tacoma and across Washington State find practical solutions to their financial challenges. Whether you’re considering conversion or exploring bankruptcy for the first time, we’re here to help you move forward with confidence.

Call 253-252-5897 today to schedule your free consultation and learn whether switching to Chapter 13 is the right option for you.

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