Filed the wrong chapter? Your circumstances changed? Bankruptcy law allows you to convert between chapters -- sometimes as a matter of right. Here is how it works in the Western District of Missouri and the District of Kansas.
Under section 706(a), the debtor's right to convert is generally absolute if the case was not previously converted.
Under section 1307(a), the debtor's right to convert is generally absolute. However, the court can deny conversion in cases of bad faith.
| Conversion | Court Fee | Typical Attorney Fee (KC) | Statutory Basis |
|---|---|---|---|
| Chapter 7 to Chapter 13 | $25 | $1,000-$2,000 | 11 U.S.C. 706(a) |
| Chapter 13 to Chapter 7 | $25 | $500-$1,500 | 11 U.S.C. 1307(a) |
| Chapter 7 to Chapter 11 | $922 | Varies widely | 11 U.S.C. 706(a) |
| Chapter 13 to Chapter 11 | $932 | Varies widely | 11 U.S.C. 1307(d) |
In Chapter 13, additional attorney fees for conversion can sometimes be paid through the plan.
Conversion is almost always better than dismissal and refiling because it preserves continuous automatic stay protection and avoids the section 362(c)(3) penalty.
Yes. Under section 706(a), you have the right to convert as long as the case was not previously converted from another chapter. You must be eligible for Chapter 13 (regular income, debts within limits). The fee is $25.
Yes. Under section 1307(a), you can convert at any time. You must be eligible for Chapter 7. The fee is $25. This is often better than letting your Chapter 13 be dismissed.
The court fee is $25. Attorney fees for the additional work typically range from $500-$2,000 in Kansas City depending on the direction of conversion and complexity.
When you need to protect non-exempt assets (home equity above $15,000 in MO, car equity above $3,000 in MO), save your home from foreclosure, or when the trustee wants to liquidate property you want to keep.
When you lost your job, your income dropped, you are facing dismissal for missed plan payments, or you no longer need to protect property through the plan.
Generally no. The debtor's right to convert is absolute under sections 706(a) and 1307(a) as long as the case was not previously converted. The court may deny conversion only in limited circumstances such as bad faith.