Changing chapters in bankruptcy

Dear Dr. Don,
If I filed Chapter 13, can I turn it to a Chapter 7 filing? Will I have to give up my house? We have been making the Chapter 13 payments for six months. My hours at work were cut way down and my husband is facing a layoff from his job. Any advice would be helpful, since I can never get a hold of the attorney that filed this for us. Thanks. -- Barb Bankruptcy

Dear Barb,
According to the provisions in the U.S. Code, you can convert a Chapter 13 bankruptcy into a Chapter 7 filing. The petitioner's inability to stay current in the Chapter 13 repayment plan is a common reason for converting to a Chapter 7 bankruptcy.

If you are current on your mortgage payments, your ability to keep your house in a Chapter 7 bankruptcy depends on how much equity you have in the house and how much of that equity is protected by a homestead exemption provision in your state's bankruptcy laws. Bankruptcyaction.com provides a listing of bankruptcy exemptions by state.

In Chapter 7 bankruptcy, whether you will lose your house depends on the amount of equity you have in the property and the amount of any homestead exemption (which varies state-to-state) to which you are entitled. If the equity in your home is exempt, and you can stay current on the mortgage payments, you should be able to keep your home.

The U.S. Courts has a guide to bankruptcy called Bankruptcy Basics that provides a thorough overview on all types of bankruptcy filings.

If you can't get your attorney to help you convert your case then you need to find a new attorney.