Chapter 13 debtors have an absolute right to convert to Chapter 7 under § 1307(a). The conversion is faster than dismissal-and-refile and preserves the original filing date for purposes of the automatic stay history.
Most conversions take 30 minutes of paperwork plus a new 341 meeting in the converted case.
Under 11 U.S.C. § 1307(a), a Chapter 13 debtor has an absolute right to convert at any time. The court does not need to approve the conversion in most cases; the conversion is by right.
Conversion does not bypass the means test. If your current monthly income is above the median for your household size and state, you may need to file the Form 122A means test calculation along with the conversion. Above-median income that fails the means test can result in dismissal or reconversion.
Most districts use Local Form for Notice of Conversion. Check your court's local rules; many provide a one-page form. Some districts require a motion instead of a notice.
The Chapter 13 filing fee was $313 and Chapter 7 is $338. If converted, the difference of $25 is owed unless you have a fee waiver in the new chapter or are paying in installments. Some courts charge no differential at all on voluntary conversion.
Conversion triggers a new statement of intentions, a new means test (if above median), updated schedules I and J, and the post-filing financial management course requirement. The trustee may also require updated bank statements and pay stubs.
A new 341 meeting is held under the new chapter, with the new Chapter 7 trustee. The questions overlap with your prior 341, but the trustee will focus on what changed since you filed Chapter 13 and on Chapter 7 issues like asset valuation.
The most common reasons: income loss makes the plan unaffordable, the secured-debt threats that drove the original Ch 13 (foreclosure, repossession) have resolved, or assets that needed protecting are no longer at issue. Chapter 7 is faster (3-6 months vs. 3-5 years) and has no plan payment obligation.
Almost never on a voluntary conversion. § 1307(a) is read as an absolute right by most courts. Bad-faith conversions (e.g., to evade specific creditors) can be challenged, but this is rare in consumer cases.
You lose Chapter 13's specific tools: the cure-and-maintain mortgage option, lien stripping on underwater junior liens, and the cramdown of certain personal property loans. If those tools were why you filed 13, converting is a strategic loss.
Pre-conversion plan payments stay with the Chapter 13 trustee, who distributes them per the (now-defunct) plan. Any undistributed funds go back to you in many courts; some courts may pay them to creditors. Local rules govern.
Yes - the discharge in the converted case is a Chapter 7 discharge (broader, immediate), not a Chapter 13 discharge. You will need a new financial management course before discharge if you have not already taken it.
After conversion: