Converting Between Bankruptcy Chapters in Miami

Under 11 U.S.C. section 1307(a), you have an absolute right to convert from Chapter 13 to Chapter 7, as long as your case was not originally a Chapter 7 that was converted to Chapter 13. This right cannot be denied by the court.

• Common when you lose income and can no longer afford plan payments
• You must still pass the means test for Chapter 7 -- Florida median income for one person is $57,963
• Any payments already made to creditors through your Chapter 13 plan are not returned to you
• Your Florida exemptions apply -- including the unlimited value (up to half-acre within municipality, 160 acres outside) homestead exemption
• The automatic stay remains in effect during conversion

Under 11 U.S.C. section 706(a), you have a one-time right to convert from Chapter 7 to Chapter 13, provided you are eligible for Chapter 13 (regular income and debts within limits). Common reasons include:

• You are about to lose your home or vehicle and need the repayment plan structure
• The Chapter 7 trustee identified non-exempt assets you want to protect
• You have debts that are non-dischargeable in Chapter 7 but can be managed in Chapter 13 (such as certain tax debts)
• Your income increased and you no longer pass the means test

Chapter 13 debt limits: unsecured debts must be under $2,750,000 (combined secured and unsecured, effective 2024).

• Homestead: Florida's unlimited value (up to half-acre within municipality, 160 acres outside) homestead exemption applies in both chapters. Converting to protect your home may be unnecessary if your equity is already exempt.
• Vehicle: Florida exempts $1,000 per vehicle plus $4,000 wildcard (section 222.25). If your vehicle equity exceeds this, Chapter 13 lets you keep it by paying the excess through the plan.
• Foreclosure: Judicial foreclosure required, typically takes 6-12 months. Florida has one of the longest foreclosure timelines in the nation. If you are behind on your mortgage, converting to Chapter 13 lets you cure arrears over 3-5 years.
• Filing location: Conversions are filed in the same court -- the Southern District of Florida at 301 N Miami Ave, Miami, FL 33128.