Getting Around the Means Test
I read an interesting post on Kevin Chern's bankruptcy blog about ways to circumvent the means test in filing Chapter 7 bankruptcy. Link: BAPCPA - Bankruptcy Abuse Prevention and Consumer Protection Act Resources for Attorneys, Lawyers, Law Firms : Bankruptcy Lawyers Blog. The blog post suggest that people who will fail the means test can first file a Chapter 13 bankruptcy, which does not require means testing, and after the 13 is started exercise their right to convert to Chapter 7 status. The Chapter 13 filing saves $70 in filing fees, although more legal fees would probably be involved in this more complicated path into Chapter 7.
Although there is some risk that a Chapter 13 could be dismissed with an injunction against refiling or conversion if deemed to be in bad faith, the author suggest that for debtors who fail the means test all attorneys should suggest conversion into Chapter 7 from Chapter 13 bankruptcy.
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In FLorida what do u have to file in order to convert a post confirmation ch 13 to a 7? can you just file the notice of conversion or do u need to try and modify the Ch 13 plan first?
also is there a minimum time period you must wait until you are able to file for the conversion?
Posted by: amy | July 21, 2009 at 04:50 PM
See 11/1/2005 article in ABI Journal and National Association of Chapter 7 Trustee Magzine article by Instructor Eric Brunstad (Yale Law Bankruptcy Instructor) entitled, " The Inapplicability of "Means Testing" to Cases Converted to Chapter 7". It's a very good article and covers all the bases.
Posted by: Dave Falvey | November 26, 2006 at 05:42 PM
I believe that the Chapter 7 trustee who is appointed to administer the case after it is converted will demand to see an amended form 22(a). The ploy to file a Chapter 13 and then convert to Chapter 7 will likely fail if the Chapter 7 trustee is diligent.
Posted by: David Siegel | March 13, 2006 at 08:40 PM
life after bankruptcy
Posted by: | March 02, 2006 at 11:04 AM