Can You Convert a Chapter 7 Bankruptcy to Chapter 13?

 Posted on July 28, 2026 in Bankruptcy

You can convert a Chapter 7 bankruptcy to Chapter 13 in most situations. This option exists specifically to give you flexibility if your circumstances change. It also helps if Chapter 7 turns out not to be the right fit for your situation. A DuPage County bankruptcy lawyer can help you understand whether converting your case is the right move.

If you contact The McCormick Law Firm, LLC, you'll work directly with Attorney Eron McCormick. He takes a genuine guy-next-door approach to explaining your options in a way that actually makes sense.

Why Would Someone Want to Convert From Chapter 7 to Chapter 13 Bankruptcy?

Several situations might lead someone to convert their case after initially filing Chapter 7. You might discover during your case that you actually earn too much income to qualify for Chapter 7 under the means test. You might also want to keep an asset that would otherwise be sold off in a Chapter 7 case, like a house facing foreclosure. Some people also convert because they've fallen behind on a secured debt, like a car loan or mortgage. Chapter 13's repayment structure offers a better way to catch up without losing the property entirely.

What Does Federal Law Say About Converting Your Bankruptcy Case?

Converting a bankruptcy case is addressed under 11 U.S.C. Section 706. This law generally lets you convert your Chapter 7 case to Chapter 13, as long as you meet the eligibility requirements. There's one catch, though. If your case was already converted from Chapter 13 to Chapter 7 once before, that right to convert becomes limited. Otherwise, this option gives you real flexibility if your financial situation changes partway through the bankruptcy process.

Are There Situations Where You Can't Convert Your Bankruptcy Case?

You generally cannot convert your case if you don't qualify as a debtor under Chapter 13. Chapter 13 has its own eligibility requirements related to your total debt amounts and the type of debt you owe.

Additionally, if your case was previously converted from Chapter 13 to Chapter 7, you typically cannot convert it back to Chapter 13 again. Courts can also deny a conversion request in cases involving bad faith. This could mean attempting to convert simply to delay creditors or manipulate the bankruptcy process unfairly.

What Happens to Your Case After You Convert From Chapter 7 to Chapter 13?

Once you convert from Chapter 7 to Chapter 13, your case essentially transitions into a repayment plan structure. This is different from the liquidation process used in Chapter 7. You'll need to propose a repayment plan, typically lasting three to five years. This plan outlines how you'll pay back some or all of your debts using your income going forward.

Certain steps you already completed under Chapter 7, like credit counseling requirements, generally carry over. Because of this, you won't necessarily need to start every part of the process completely from scratch.

What Are the Benefits of Converting to Chapter 13?

Several advantages might make converting to Chapter 13 worthwhile, depending on your circumstances. These often include:

• The ability to catch up on missed mortgage or car payments over time
• Protection from foreclosure or repossession while you complete your repayment plan
• The opportunity to keep valuable assets that might otherwise be sold in Chapter 7
• More flexibility for debts that aren't dischargeable in Chapter 7, like certain tax obligations

These benefits can significantly change your financial outcome. Because of this, understanding whether they apply to your specific situation is an important part of deciding whether conversion makes sense for you.

What Should You Consider Before Converting Your Bankruptcy Case?

Before deciding to convert your case, review your current income and expenses carefully. This will determine whether a Chapter 13 repayment plan is realistic for your situation. Think through which specific assets you're trying to protect. Consider whether Chapter 13 actually offers a meaningful advantage for those particular items.

Getting a clear picture of your total debt and how it would be treated under each chapter can help you make a more informed decision about whether converting truly serves your long-term financial goals. And if you have any questions, we can help.

Schedule a Free Consultation With Our Naperville, IL Bankruptcy Attorney

Deciding whether to convert your bankruptcy case is a significant decision. You want straightforward guidance rather than confusing legal jargon while you sort through your options. Our firm proudly offers discounts for military members, veterans, and first responders as a way of giving back to those who have served.

Contact The McCormick Law Firm, LLC at 630-517-8570 to talk to our DuPage County bankruptcy lawyer today.