Convert Chapter 13 to Chapter 7 Personal Bankruptcy

Proper conversion & converting Chapter 13 to Chapter 7

Under 11 U.S.C. 1307(a), "The debtor may convert a case under this chapter to a case under chapter 7 of this title at any time. Any waiver of the right to convert under this subsection is unenforceable." Conversion transforms a personal bankruptcy case under Chapter 13 repayment to Chapter 7 liquidation.

Further, the trustee or the court may initiate a conversion of personal bankruptcy from 13 to 7. Personal bankruptcy laws are specific: for a trustee's or court's motion to be granted, the court must find based on credible evidence:

unreasonable delay by the debtor caused prejudice to creditors;
nonpayment of any required fee;
failure to file a plan timely;
failure to commence making timely payments;
material default by the debtor; or
failure to file schedules.

Debtors may also dismiss a personal bankruptcy case under Chapter 13 at any time, unless previously converted. This right to dismissal can not be waived, and any attempt by creditors to impose punitive clauses in agreements are unenforceable.