Significance

• If a change in circumstances leaves you incapable of keeping up with your Chapter 13 payments and the bankruptcy trustee is unwilling to modify them, you can request a conversion of your case. This prevents the bankruptcy court from dismissing your bankruptcy and leaving you once again vulnerable to creditor collection activity.
  
  

Eligibility

• Your eligibility for Chapter 7 bankruptcy depends upon a variety of factors such as your income, your family size and the median family income in your area. You must prove that your family's income is lower than the majority of families with the same amount of members in your area before the court will approve the conversion.
  
  

Effects

• Once the court converts your case to a Chapter 7, the bankruptcy trustee will review and liquidate your non-exempt assets. Once discharged, you cannot file for Chapter 7 bankruptcy again for eight years. The bankruptcy will appear on your credit report for 10 years from the date you originally filed.