I filed for Chapter 7 in 2016 and dismissed in August of that same year. I am currently in Chapter 13 with 100 percent repayment. I have started nursing school and my work hours will be greatly reduced. Can I convert to a Chapter 7 or get my payments reduced?
Yes to both questions, but you need to consult an experienced bankruptcy before you do anything.
You must first determine if you received a Discharge Order in the prior Chapter 7 case. If you did not receive a Discharge Order in that case and it was dismissed without a Discharge Order, then you may be able to convert your Ch 13 to Chapter 7. You will need to sit down with your attorney and determine what assets could be at risk of being liquidated if you convert to Chapter 7. You must also determine if you have any new creditors, and if your income will be low enough for you to amend your budget and means test to demonstrate you are legally eligible to proceed under a converted case to Chapter 7. You should not make any move until you go over these issues with your attorney. You also may be able to file a motion under 11 U.S.C. 1329 to amend the confirmed Ch 13 plan to lower the payments, based upon a material change in your income, or a material increase in your household expenses ( or both).
