What Do I Do After I Convert My Chapter 7 Bankruptcy Into a Chapter 13 Bankruptcy?

File Chapter 13 Plan

Submit a Chapter 13 plan to the bankruptcy court within 14 days after the case has been converted. According to Federal Bankruptcy Procedure Rule 3015, the debtor must ask the bankruptcy court for an extension if more time is needed to file the plan. Payment of secured and priority debts, outstanding attorney fees and trustee fees must be covered in the plan. The plan should also list which property, if any, the debtor wants to surrender.

Chapter 13 bankruptcy requires that the debtor make monthly payments to the trustee. The payment plan may last three or five years, depending on the debtor's income, expenses and the amount of debt. When a Chapter 13 trustee is assigned to the case, the debtor needs to submit the monthly payments to that trustee. Debtors should speak with their attorney to find out the amount of the monthly trustee payments and the due date for the payments and to confirm the trustee's payment information. The trustee will file a motion to dismiss the case if the payments are not submitted on time.

Complete a financial management course. Financial management teaches debtors how to handle their income and expenses. Many companies offer the course over the phone or online. Failing to take a financial management course will prevent the case from ultimately being discharged. Federal Bankruptcy Procedure Rule 1007(c) requires the debtor to file the financial management certificate of completion prior to making the last payment for the Chapter 13 plan. Refer to your state's bankruptcy court website for a list of court-approved courses.

Chapter 13 cases last for several years. During that time, debtors may move, change their phone numbers or realize a change in their financial circumstances. It is imperative to remain in contact with the attorney and notify him of changes in residence or contact information. This will make it easier for the attorney to reach the client if there are changes or updates regarding the case. If there is a reduction or increase in income, or if the debtor wants to incur more debt by obtaining a loan, the attorney needs to be notified. The attorney can advise how those things will affect the overall case and will ensure the trustee remains updated.