Many times the case can be switched from a Chapter 13 to a Chapter 7 to relieve the debtor of the Chapter 13 payments. In bankruptcy language this is referred to as "converting". One benefit to converting a Chapter 13 to a Chapter 7 instead of dismissing and refiling a new case is the cost of the filing fee. A Chapter 7 filing fee is currently $299. The filing fee to convert a Chapter 13 in Oregon to a Chapter 7 is $25.
Typically new schedules and information must be filed in the converted chapter 7 case, so your attorney may charge you legal fees to do the conversion. But, by converting to Chapter 7 you will relieve yourself of the ongoing monthly payments in your chapter 13.
Not everyone can convert their Chapter 13 to a Chapter 7. For example, if you have enough income to continue to pay your creditors in Chapter 13, you may be prevented from going to a Chapter 7. Also, if you are in Chapter 13 because you have had a Chapter 7 filed in the 8 years before the original chapter 13 was filed, you can not convert to a Chapter 7.
There are other reasons a Debtor in an Oregon Chapter 13 may not want to convert. If you are in Chapter 13, and you are having a tough time making the payments you may want to talk to your bankruptcy attorney about converting to a Chapter 7.
For more Oregon chapter 7 and Oregon Chapter 13 bankruptcy information please visit www.pacificbankruptcy.com.