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Chapter 13 to Chapter 7 conversion with a previous Chapter 7

Asked over 2 years ago - Peru, IN

My wife and I filed Chapter 13 bankruptcy in late 2005. In April of 2009, we converted to a Chapter 7. We went through the meeting of the creditors with no problem, but we just received an Order to Show Cause from the judge, citing US Code Title 11, Chapter 727, Section a, Paragraph 8. He claims that, since we had a Chapter 7 discharged in October 1999, we are not eligible for a discharge of this bankruptcy. Obviously, he's basing his claim on the date of our Chapter 13 filing, rather than the date of our conversion. Is this right? Seems like he's comparing apples to oranges here. My attorney's on vacation for a week and I really need to know if my wife and I have a legal leg to stand on.

Additional information
To clarify, is the 8-year period measured from the petition date of the first bankruptcy to the petition date of the Chapter 13 bankruptcy (only about 6 1/2 years), or is it measured from the petition date of the first bankruptcy to the CONVERSION date of the most recent chapter 7 (more than 9 years)?

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Attorney answers (2)

Jeffrey Daniel Larkin

Reputation Level 15

Answered over 2 years ago. Bankruptcy Attorney in Carlsbad, CA.

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The relevant dates in your case are the date of the original Ch. 7 filing in 1999 and the date of the original Ch. 13 filing in 2005. Tell your attorney you want to dismiss the case you converted and then re-file a chapter 7. Since you didn't receive a discharge in the chapter 13 in 2005, you are eligible for a chapter 7 discharge at this point. There is an 8 year rule between chapter 7 discharges not a 10 year rule as indicated in another answer.

LEGAL DISCLAIMER
Mr. Larkin is licensed to practice law in CA and is located in San Diego. His response here does not constitute legal advice and does not create an attorney/ client relationship. The response is in the form of legal education and is intended to provide general information about the matter in question. Many times the questioner may leave out details which would make the reply unsuitable. Mr. Larkin strongly advises the questioner to confer with an attorney in their own state to acquire more information about the specifics of their case.

The Larkin Law Firm

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Max L Rosenberg

Reputation Level 10

Answered over 2 years ago. Bankruptcy Attorney in Stratford, CT.

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To begin, I am licensed in Connecticut and New York and not in Indiana. However, it seems to me that since the BAPCA changed bankruptcy law in Oct of 2005 and there is now a ten year bar against filing ch 7s after filing a previous 7 you may still fall within the ten year period. However, your attorney may be able to come up with some case law to refute the judges ruling.

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