Arizona Chapter 13 to Chapter 7 Bankruptcy Conversion
Are you considering converting your Chapter 13 bankruptcy to Chapter 7? Call a Phoenix bankruptcy lawyer at Hilltop Law Firm to discuss.
Are You in Need of a Phoenix Chapter 13 to Chapter 7 Bankruptcy Conversion Lawyer?
When you filed for Chapter 13 bankruptcy, you were probably seeking a structured path to repay your debts over time and retain valuable assets. But sometimes life doesn't go as planned. If you're struggling to keep up with your repayment plan, you may be wondering if converting your case to Chapter 7 bankruptcy is the right next step.
At Hilltop Law Firm, we understand that your financial situation can change quickly. Our Phoenix-based legal team helps people take control of their financial future through bankruptcy relief options, including Chapter 13 to Chapter 7 conversions.
It might be time to consider converting to Chapter 7 bankruptcy if you are currently in a Chapter 13 repayment plan and one or more of the following circumstances applies:
- You’ve lost your job or taken a pay cut
- Your monthly payments have become unmanageable
- Your debt continues to grow despite your best efforts
- You’re experiencing medical issues, divorce, or other financial setbacks
Why Choose Us Over Other Chapter 13 to Chapter 7 Bankruptcy Conversion Attorneys in Phoenix?
Whether you’ve lost income, experienced unexpected expenses, or you are simply overwhelmed by debt, we are here to help you navigate this complex transition with confidence. Having a dedicated Phoenix Chapter 13 to Chapter 7 bankruptcy conversion attorney like Cy Hainey can make a big difference in determining how smoothly the process goes.
Here’s what sets our firm apart:
- Nearly a decade of bankruptcy law experience – giving clients trusted guidance through complex financial matters.
- Multilingual communication available in English, Spanish, and French – so you can speak comfortably in the language you prefer.
- Responsive, attentive service; we keep you informed every step of the way – because you deserve clear answers and consistent support.
- Deep knowledge of both consumer bankruptcy and banking industries – allowing for well-rounded solutions tailored to your situation.
- Known for being honest, helpful, and understanding – with a reputation for treating clients with the respect they deserve.
- Free consultations to help you get started without upfront cost – so you can explore your options with no pressure or commitment.
- Convenient Zoom consultations available – making it easy to get legal advice from the comfort of your home.
Behind on Chapter 13 Payments?
We can help you explore converting to Chapter 7 before things get worse. Call Hilltop Law Firm now at (602) 466-9631.
What Is Bankruptcy Conversion?
A bankruptcy conversion is the legal process of changing your existing bankruptcy case from one chapter to another. In most cases, people convert from Chapter 13 to Chapter 7 when their financial circumstances have worsened and they can no longer afford to maintain their repayment plan.
Under the U.S. Bankruptcy Code, filers are generally allowed to convert their case from Chapter 13 to Chapter 7 at any time, provided they meet eligibility requirements for Chapter 7.
This process gives debtors a fresh path forward by potentially discharging most unsecured debts such as credit card balances, personal loans, and medical bills, without the burden of a long-term repayment plan.
What’s the Difference Between Chapter 13 and Chapter 7 Bankruptcy?
Understanding the differences between these two types of bankruptcy is key to making the right decision:
Chapter 13 Bankruptcy
- Also known as a wage earner’s plan
- Allows debtors to repay all or part of their debts through a 3–5 year court-approved plan
- Often used to save a home from foreclosure or keep non-exempt property
- Requires regular, steady income to qualify
- You make monthly payments to a trustee who distributes the funds to creditors
Chapter 7 Bankruptcy
- Also called liquidation bankruptcy
- Allows for discharge of most unsecured debts without a repayment plan
- Non-exempt assets may be sold to pay creditors, though many people retain most or all of their property
- No ongoing payments after discharge
- Requires passing a means test to show income eligibility
While Chapter 13 may be ideal for some, it's not always sustainable. Converting to Chapter 7 can offer quicker relief from overwhelming debt for those who qualify.
The Benefits of Chapter 7 Bankruptcy
Chapter 7 bankruptcy can provide meaningful relief for individuals who are overwhelmed by debt and need a faster path forward. Unlike repayment-based options, Chapter 7 focuses on eliminating qualifying unsecured debts, allowing you to reset your finances without years of ongoing payments. For many people facing job loss, reduced income, or unexpected expenses, Chapter 7 offers a practical way to regain stability and move toward a more manageable financial future.
Some of the key benefits of Chapter 7 bankruptcy include:
- Discharge of most unsecured debts, such as credit cards, medical bills, and personal loans
- A relatively quick process, often completed within a few months
- Immediate protection from collection efforts through the automatic stay
- No requirement to follow a long-term repayment plan
- The ability to keep many assets through state and federal exemptions
- An opportunity to rebuild credit without the weight of past-due debt
Not Sure if You Can Convert to Chapter 7?
Let Hilltop Law Firm review your case and help you move forward. We offer a free consultation. Call (602) 466-9631 to learn more today.
Reasons for Converting to Chapter 7
There are a number of valid reasons why someone might choose to convert from Chapter 13 to Chapter 7 bankruptcy.
Financial Hardship
You may have initially had the income needed to support a Chapter 13 plan. But if you’ve experienced a job loss, reduced income, or increased expenses, you may no longer be able to afford the monthly payments. Conversion allows you to seek debt relief without needing continued income.
Inability to Meet Repayment Plan Obligations
If you're falling behind on your Chapter 13 plan payments, your case could be dismissed by the court. Converting to Chapter 7 may help you avoid that outcome and protect you from aggressive collection actions.
Looking for a Fresh Start
Some individuals find that Chapter 13 stretches their financial and emotional bandwidth too thin. If you're looking for a faster resolution to your debt, Chapter 7 typically takes 3–6 months to complete, making it a quicker route to rebuilding your financial life.
The Conversion Process
If you decide to convert your bankruptcy case, here's what to expect:
1. Filing a Motion or Notice of Conversion
To begin the process, your Phoenix bankruptcy attorney will help you file a notice or motion to convert with the bankruptcy court. In most cases, this does not require creditor approval, although the trustee and court will review your case for compliance.
2. Court Review and Hearing (If Required)
Depending on your circumstances, a judge may hold a hearing to confirm the conversion is being made in good faith and that you qualify for Chapter 7. In straightforward cases, this hearing is often waived.
3. Eligibility Check: The Means Test
You’ll need to pass the Chapter 7 means test, which assesses your income and expenses to determine eligibility. If your income falls below Arizona's median for your household size, you will likely qualify.
4. Trustee Appointment
A new Chapter 7 trustee will be assigned to your case. You may also need to attend a new meeting of creditors, known as a 341 meeting, to answer questions about your financial situation.
What Is Compliance?
Once your case is converted, you'll need to comply with Chapter 7-specific requirements, which may include:
- Filing updated financial schedules
- Submitting new documentation (e.g., tax returns, pay stubs)
- Completing a credit counseling and financial management course from a court-approved agency
- Cooperating with the Chapter 7 trustee during asset review
Failure to comply with these steps could delay or jeopardize your discharge, so it’s important to stay on track with deadlines and requirements. Our legal team at Hilltop Law Firm helps ensure all your paperwork is accurate, timely, and complete.
How an Attorney Can Help
While you are allowed to file for conversion on your own, the bankruptcy system is complex and full of legal nuances. Working with a Phoenix bankruptcy conversion lawyer offers critical advantages:
- Evaluate Your Eligibility: We'll conduct a thorough review of your financial status to determine whether conversion is in your best interest.
- Guide You Through the Process: From paperwork to trustee communications, we help manage the entire process for you.
- Protect Your Property: Arizona’s bankruptcy exemptions are complex and our team works to help you retain as much of your property as possible.
- Communicate with Creditors: If creditors challenge your conversion or discharge, we’re prepared to represent your interests in court.
- Avoid Costly Mistakes: A simple error in filing or documentation can lead to delays or denial of your discharge. We make sure everything is done correctly the first time.
What Clients Are Saying About Us
Consider Cy, I'm glad I did. -I.L. (5-Star Google Review)
I have recently filed for Chapter 7 Bankruptcy and if it wasn't for Cy Hainey at Hilltop Law Firm, I would be locked up for being nuts. He made every attempt to make my journey easy or at least understandable. Dealing with any government office is never easy, and Cy made this event manageable. If you are ever in need of a quality attorney, consider Cy, I'm glad I did.
Job well done-Glen Stothers (5-Star Google Review)
Great law firm. Cy and his staff took me through what I thought would be a long and arduous process to one that was easily managed. Job well done.
Speak With a Trusted Phoenix Chapter 13 to Chapter 7 Conversion Lawyer Today
If your current Chapter 13 plan is no longer sustainable, it may be time to explore your options for conversion. At Hilltop Law Firm, we understand the anxiety and uncertainty that comes with financial hardship, and we’re here to help.
You don’t have to go through this process alone. Our attorney Cy Hainey understands the legal and financial aspects of your situation. We take pride in being responsive, understanding, and fully committed to guiding you toward a brighter financial future.
Call (602) 466-9631 to schedule your free consultation today. Let’s discuss your options and take the next step toward lasting debt relief.
Frequently Asked Questions
Can I switch from Chapter 13 to Chapter 7 bankruptcy at any time?
Yes, most Chapter 13 filers have the right to convert their case to Chapter 7 at any point, as long as they meet the eligibility requirements for Chapter 7, including passing the means test.
What is the means test, and how does it affect my ability to convert?
The means test compares your income to Arizona’s median income for your household size. If your income is below the median, you will likely qualify for Chapter 7. If it’s higher, a more detailed calculation is required to assess your eligibility.
Will I lose my property if I convert to Chapter 7?
Not necessarily. Arizona has generous exemption laws that allow many filers to keep most or all of their property. Our firm can help you understand what assets are protected and how to minimize any risk.
Do I have to start the bankruptcy process over when I convert?
No, you don’t start over entirely. You’ll keep your original case number, but the court will assign a new trustee, and you’ll need to complete Chapter 7-specific requirements like filing updated forms and attending a new creditor meeting.
Will converting to Chapter 7 stop my Chapter 13 repayment plan?
Yes. Once your case is converted, you will no longer be obligated to make payments under the Chapter 13 plan. However, you must still comply with the requirements of Chapter 7 to complete your case and receive a discharge.
Do I need court approval to convert my case?
Most of the time, you can convert by filing a simple notice or motion. In some cases, a court hearing may be scheduled to ensure your request is made in good faith and that you qualify for Chapter 7.
What debts can be discharged in Chapter 7 after converting?
Chapter 7 can discharge most unsecured debts, including credit card balances, medical bills, personal loans, and some past-due utility bills. Certain debts like student loans, recent taxes, and child support are generally not dischargeable.
How long does the Chapter 7 process take after conversion?
Most Chapter 7 cases are resolved in about 3 to 6 months after conversion, depending on the court’s schedule and your compliance with required steps.
Will creditors be notified of the conversion?
Yes. Once your case is officially converted, the bankruptcy court will notify your creditors, and the protections of the automatic stay will continue under Chapter 7 to help shield you from collection efforts.
Do I need an attorney to convert from Chapter 13 to Chapter 7?
While it’s possible to file for conversion on your own, the process involves strict requirements and important legal decisions. Working with Hilltop Law Firm helps ensure you meet deadlines, protect your assets, and position yourself for a successful discharge.
Meet Cy and Samantha Hainey
Cy Hainey
Cy Hainey is the founding attorney of Hilltop Law Firm, where he focuses on guiding individuals and families through some of the most financially challenging times of their lives. With nearly a decade of legal experience and a professional background in banking, Cy offers clients a well-rounded perspective on debt relief, personal bankruptcy, and financial restructuring.
Before founding Hilltop Law Firm, Cy worked in the banking industry, where he developed a deep understanding of how creditors operate. This insight now helps him advocate effectively for clients facing overwhelming debt, creditor harassment, and complex bankruptcy filings. He regularly handles Chapter 7 and Chapter 13 bankruptcies, debt settlement, credit repair, and debt collection defense, providing compassionate legal guidance with a focus on long-term financial stability.
Cy is known for being approachable, honest, and highly responsive. He takes the time to educate clients on their rights and options, ensuring that every legal strategy is tailored to meet their specific needs.
Samantha Hainey
Samantha Hainey serves as the President of Client Services & Operations at Hilltop Law Firm, where she leads the firm’s client experience and day-to-day business operations. With more than 22 years of experience in customer service, leadership, and account management, Samantha ensures every client feels heard, supported, and informed from the first call to the final resolution.
Before joining Hilltop in 2021, Samantha built a successful career in the global mobility industry, where she served as Vice President of Client Services. In that role, she oversaw multiple international client accounts and managed an office of over 30 professionals. Her business background has equipped her with the tools to streamline internal processes and deliver an experience that is both empathetic and highly efficient.
Additional Information
- How Does Chapter 13 Bankruptcy Affect Your Credit in Phoenix?
- Can I File for Chapter 7 Bankruptcy More Than Once in Phoenix?