Converting Between Chapters in Minneapolis

Sometimes the chapter you filed under is not the right fit. Federal law allows conversion between Chapter 7 and Chapter 13 under certain conditions.

This page provides general educational information, not legal advice. Consult a qualified attorney for advice about your specific situation.

What Is a Bankruptcy Conversion?

A bankruptcy conversion changes your case from one chapter to another -- typically from Chapter 7 to Chapter 13 or vice versa. The original filing date is preserved, which matters for preference periods, exemption valuations, and the discharge eligibility timeline.

Conversion is governed by 11 U.S.C. sections 706 (Chapter 7 to 13) and 1307 (Chapter 13 to 7).

Chapter 7 to Chapter 13

When It Makes Sense

  • Saving your home: If behind on your mortgage, Chapter 13 lets you catch up through the plan
  • Non-exempt property: If property exceeds Minnesota's exemptions ($450,000 homestead, $5,000 vehicle), Chapter 13 lets you keep it
  • Means test failure: If you do not qualify for Chapter 7, converting to Chapter 13 avoids dismissal

Requirements

  • Absolute right to convert under section 706(a) -- the court cannot deny it
  • Must have regular income for a Chapter 13 plan
  • Case must not have been previously converted from Chapter 13
  • Must be eligible for Chapter 13 (debts within $2,750,000 limit)

Chapter 13 to Chapter 7

When It Makes Sense

  • Income loss: Job loss or reduced income makes plan payments impossible
  • Changed circumstances: Divorce, medical emergency, or other life changes
  • Property no longer worth saving: If surrendering your home or vehicle, Chapter 7 may be faster

Requirements

  • Absolute right to convert under section 1307(a) if not previously converted
  • Must qualify for Chapter 7, including the means test (Minnesota median: $62,458 for 1 person)
  • Conversion may trigger trustee review of non-exempt assets

What Happens When You Convert

  • Filing date preserved -- affects preference periods and exemption valuations
  • New trustee assigned for the new chapter
  • New 341 meeting under the new chapter
  • Automatic stay continues through conversion
  • Additional fees may apply

Minnesota Considerations

  • Exemptions: Minnesota has its own exemption system -- one of the more debtor-friendly in the country. Conversion may change which property is at risk.
  • Homestead ($450,000): If home equity exceeds the exemption, converting to Chapter 13 may be necessary to keep it.
  • Court location: Cases in the District of Minnesota are heard at 316 N. Robert St., St. Paul, MN 55101.
  • Foreclosure: Minnesota uses non-judicial with a 6-month redemption period. Timing matters if converting to Chapter 13 to save your home.

Frequently Asked Questions

Can I convert from Chapter 7 to Chapter 13?

Yes. You have an absolute right under section 706(a), as long as you are eligible for Chapter 13 and the case was not previously converted.

Can I convert from Chapter 13 to Chapter 7?

Yes, under section 1307(a) if not previously converted. You must pass the means test (Minnesota median: $62,458).

Does conversion cost extra?

There may be additional filing fees, and your attorney may charge for the work. Still generally cheaper than dismissing and re-filing.

Does conversion reset my filing date?

No. Your original filing date is preserved, affecting preference periods and discharge eligibility.

Can the court force a conversion?

Yes. The court can convert Ch. 7 to Ch. 13 if you fail the means test, or Ch. 13 to Ch. 7 for cause like failure to make plan payments.

Check Your Eligibility

Use our free screener to check if prior filings affect your eligibility for a new bankruptcy discharge.

Free Discharge Screener How to File Guide

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