Bankruptcy Conversion

There are few situations in life that are as stressful as being under the intense financial pressures that precede a bankruptcy filing. Job loss, divorce, serious illness, and many other factors can cause you to be unable to make regular and timely payments to creditors and service providers. In these circumstances, filing for bankruptcy protection can be an appealing path to relief from the unrelenting collection calls and letters, and if handled wisely and correctly it can put an end to most of your debt-related concerns. Choosing the most appropriate chapter of the United States Bankruptcy Code for your filing is a critical component of a successful bankruptcy.

In some instances, it may be necessary or appropriate to consider moving a case from Chapter 7 to Chapter 13 or vice versa. This is a process known as conversion and it may be voluntary or compulsory. To learn more about bankruptcy conversion or any other part of the bankruptcy process, contact the Arizona bankruptcy lawyers of the Harmon Law Office, LLC, at 480-829-0494.

Advantages of Bankruptcy Conversion

The failure to comply with the agreed terms of a Chapter 13 bankruptcy plan may cause a bankruptcy judge to order a debtor’s case to be converted to Chapter 7. Otherwise, a bankruptcy filer has a legal right to convert his or her case to Chapter 7 or Chapter 13 at any time during the bankruptcy period.

If it becomes apparent that a filer’s assets are of greater value than first believed, converting to Chapter 13 can help avoid a bankruptcy sale. Alternatively, if the terms of a Chapter 13 plan prove to be overly optimistic and a filer will not be able to meet the demands, he or she may decide that the voluntary liquidation of assets is a better option.

Contact Us

The Arizona bankruptcy lawyers of the Harmon Law Office, LLC, can help you to more fully appreciate the implications of a planned bankruptcy filing. Contact us today at 480-829-0494 for a free initial consultation.