Conversion and Bankruptcy Reform Legislation
I received a very good question from one of you and I wanted to take some time to address it. The person is currently in a Chapter 13 plan and due to a change of circumstances needs to convert the case into Chapter 7. The question was if they were unable to convert their case until after the new bankruptcy legislation takes effect in October, if they would now have to comply with all the new regulations?
The answer is NO, thankfully. The new legislation only affects “new” cases. Cases that are “commenced” after October 17, 2005. Generally, converting a case from one chapter to another does not create a new “commencement” date. For purposes of the new legislation, the general rule applies and converting the case doesn’t create a new “commencement” date for purposes of determining which version of the bankruptcy code applies to the case after conversion. Thus, for the example above, the converted case will be governed by the law as it was on the date of the original Chapter 13 filing, not the date the case was converted.
October 12th, 2007 at 7:24 pm
Hello I have a quesiton. I filed for bankruptcy chapter 13 back in 2004. Just to save my house from falling into foreclosure, which wasnt neccessary because 2days AFTER I filed for bankruptcy I found an investor who eventually bought my property and now I have been stuck with bankruptcy on my credit. I dont owe anyone as far as my bankruptcy is concern. the balance is a big fat $0. I spoke with a salesman because I am trying to buy a car and he suggests that I convert from a chapter 13 to a chapter 7 and get my discharge papers. So my quesiton is is it neccessary for me to convert to a chapter 7 or should i just go and get my discharge papers for my chapter 13? I do not know, please help!…..