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If an order lifting stay is granted in a Chapter 13, is the order still good if it is converted to Chapter 7?

Fort Worth, TX |

My ex-husband filed Chapter 13. I got an order lifting stay so we could go to family court over a child support dispute. He just converted to Chapter 7. Is the order lifting stay still good?

Attorney Answers 6

Posted

The attorney who assisted you in obtaining the lift stay order, would be in a better positon to say if the order is "still good".

Under the facts you describe, the order should be valid, you just need to know what the order says, and to strictly conform to it.

General legal advice is offered for educational purposes only. A consultation with a qualified attorney is required to determine specific legal advice as to your situation and applicable law. We are a debt relief agency and we help people file for relief under the bankruptcy laws.

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Posted

Normally it is

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Posted

There are a number of reason I discourage my clients from converting from Ch.13 to Ch.7. I encourage them to dismiss the Ch.13 and later file a Ch.7. This is one of those reasons: you get an automatice stay. Another reason is that sometimes conversion cases become Asset cases because the Ch.13 trustee sends whatever money he is holding to the Ch.7 trustee and the debtor does not get it. If you first dismiss the Ch.13, the debtor gets the refund from the Ch.13 trustee, then later files Ch.7.

Be sure to designate "best answer." If you live in Oregon, you may call me for more detailed advice, 503-650-9662. Please be aware that each answer on this website is based upon the facts, or lack thereof, provided in the question. To be sure you get complete and comprehensive answers, based upon the totality of your situation, contact a local attorney who specializes in the area of law that involves your legal problem. Diane L. Gruber has been practicing law in Oregon for 26 years, specializing in family law, bankruptcy, estate planning and probate. Note: Diane L. Gruber does not represent you until a written fee agreement has been signed by you and Diane L. Gruber, and the fee listed in the agreement has been paid.

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Posted

If there is only one bankruptcy case then there is only one stay. Converting from Chapter 13 to Chapter 7 does not cause it to be more than one case; it’s just a different TYPE of case. Therefore, the order lifting the stay USUALLY is still good.

However, you'll need to read the order itself from your particular case to verify what it says and to make sure there isn't anything unusual or funky in it that might vary.

Rustin Polk

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Posted

Unless the Order specifically states that the stay is lifted as to the Chapter 13 filing only (which they almost never do) then the stay remains lifted after conversion and consequently the Order is still "good".

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Posted

All these answer are correct, but the even better news is that child support, and those types of family law questions, are not covered by the automatic stay from day one of the filing of the bankruptcy petition. The problem is, some family judges either don't read the bankruptcy laws carefully, or don't want any problems, and make you jump through unnecessary hoops. Section 362 (b) has all the exceptions for family law issues.

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