Sometimes the chapter you filed under is not the right fit. Federal law allows you to convert between chapters, and District of Arizona filers should understand their rights and limitations.
Under 11 U.S.C. section 1307(a), you have an absolute right to convert from Chapter 13 to Chapter 7, as long as your case was not originally a Chapter 7 that was converted to Chapter 13. This right cannot be denied by the court.
Under 11 U.S.C. section 706(a), you have a one-time right to convert from Chapter 7 to Chapter 13, provided you are eligible for Chapter 13 (regular income and debts within limits). Common reasons include:
Chapter 13 debt limits: unsecured debts must be under $2,750,000 (combined secured and unsecured, effective 2024).
Yes. You have an absolute right to convert under section 1307(a), as long as your case did not start as Chapter 7. File a motion in the District of Arizona and the conversion is automatic.
Yes. You have a one-time right under section 706(a) if you are eligible for Chapter 13. This is common when you need to save a home or vehicle.
For Chapter 13 to Chapter 7, no -- it is an absolute right. For Chapter 7 to Chapter 13, the court must confirm you are eligible but the conversion itself is a right.
The automatic stay continues throughout the conversion. There is no gap in protection.
You can convert from Chapter 13 to Chapter 7 only once per case. You can convert from Chapter 7 to Chapter 13 only once per case. Serial conversions are not permitted.
In the District of Arizona, conversion is typically processed within a few days of filing the motion. The case then proceeds under the new chapter with new deadlines.