i was in a chapter 13 and wondering if i can convert that into a chapter7 to wipe out my unsecure debt?

Question

i recently was in a chapter13 and just sold my home. while in my chapter13 i paid of my secure debt which was back mortgage i owed. all i have left to pay is a unsecure debt of 6,058 which now that i sold my home they want all that money up front. i was wondering if i can convert my chap13 into a chap.7 to wipe out my unsecure debt because i did not make much profit off my home due to what i owed on the house.

Answer 1

If you were to file a chapter 7 now on your credit report it will show that you would have filed 2 bankruptcies. Under the new bankruptcy laws you will have to go to counseling before filing any bankruptcy and the counselors they are using are from Consumer Credit Counseling Services.

You should continue with the chapter 13 or just payoff those bills with the funds you received from the sale of your home. It will save your credit and you won't be turned down to buy another home in the future. You also want to start getting your credit back on track by applying for a secured credit card. Stay away from retail and department credit cards. These type of cards are finance companies and will lower your credit score.

Answer 2

There are basically three ways, you voluntarily do it, the court orders it or the creditors force you into it. It would be best if you go and read up on it.
UNITED STATES BANKRUPTCY INFORMATION:
http://www.uscourts.gov/bankruptcycourts.html
However make sure you consult with a bankruptcy attorney that can give you guidance as to the consequences of changing from a 13 to a 7.
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