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

Asked over 1 year ago - 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)

  1. Julie Mitchell Koenig

    Contributor Level 3

    13

    Lawyers agree

    Answered . 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".

  2. Peter Walter Weston

    Pro

    Contributor Level 17

    10

    Lawyers agree

    Answered . 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... more
  3. Rustin Scott Polk

    Pro

    Contributor Level 10

    9

    Lawyers agree

    Answered . 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

  4. Michael Glynn Busby Jr.

    Pro

    Contributor Level 19

    8

    Lawyers agree

    1

    Answered . Normally it is

  5. Diane L Gruber

    Pro

    Contributor Level 18

    7

    Lawyers agree

    Answered . 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.... more
  6. Helene Thaissa W. Bergman

    Pro

    Contributor Level 11

    4

    Lawyers agree

    Answered . 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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