11 U.S.C. § 1307(a) provides a Chapter 13 debtor with the absolute right to convert the case to Chapter 7 at any time, as long as the case has not previously been converted under §§ 706, 1112, or 1208. The procedure in the U.S. Bankruptcy Court for the District of Columbia is straightforward but has important downstream effects on exemptions, the means test, and discharge eligibility.
Conversion is a significant strategic decision. The Chapter 7 means test must still be passed at conversion — and the property of the estate, exemptions, and any interim payments to the trustee are all affected. Talk through the implications before filing.
Step-by-Step
Step 1: Confirm Eligibility for Conversion
Under § 1307(a), a Chapter 13 debtor has the absolute right to convert to Chapter 7 unless the case was already converted from another chapter (§§ 706, 1112, or 1208). The right is unwaivable. However, conversion does not guarantee a discharge — the means test (§ 707(b)) and the eight-year and four-year bars (§ 727(a)(8) and § 1328(f)) still apply.
Step 2: Pass (or Re-Pass) the Means Test
Under § 707(b), the Chapter 7 means test applies to converted cases. Pull together the past 6 months of gross income from all household sources and compare to the DC median for your household size (2026: $83,995 single / $110,454 two-person / $132,157 three-person / $157,259 four-person). If above-median, complete the Part 2 disposable income calculation. If you fail the means test, conversion may result in dismissal under § 707(b) — even after conversion has been filed.
Step 3: Confirm No § 727(a) Disqualifications
Conversion does not erase § 727(a) bars. Specifically: (a) if you received a Chapter 7 discharge within 8 years before the original Chapter 13 filing, you cannot get another Chapter 7 discharge under § 727(a)(8); (b) if you received a Chapter 13 discharge within 4 years before, you cannot get a Chapter 7 discharge under § 1328(f). If either applies, conversion gets you Chapter 7 procedural rules but no discharge — a poor outcome.
Step 4: Update Schedules I and J
Conversion requires you to file updated Schedule I (income) and Schedule J (expenses) reflecting current circumstances under Bankruptcy Rule 1019(5). The trustee uses these to evaluate the means test and to identify any post-petition assets that became property of the converted Chapter 7 estate. File contemporaneously with the Notice of Conversion.
Step 5: File the Notice of Conversion and Pay the $25 Fee
In the U.S. Bankruptcy Court for the District of Columbia, conversion is initiated by filing a Notice of Conversion under Bankruptcy Rule 1017(f). The court’s standard conversion fee is $25 (set by the Judicial Conference). File electronically or in person at the Clerk’s office (333 Constitution Avenue NW, Suite 1225). Conversion is generally effective on the date the Notice is filed.
Step 6: Address Property of the Estate
Under § 348(f)(1), property of the converted Chapter 7 estate is generally what was property of the Chapter 13 estate at original filing — wages and post-filing acquisitions in good faith Chapter 13 cases do not enter the Chapter 7 estate. However, if the conversion is in bad faith under § 348(f)(2), all property as of the conversion date enters the estate. The trustee will scrutinize timing if the conversion happened shortly after asset acquisition.
Step 7: Complete the Post-Filing Debtor Education Course
If you completed debtor education during the Chapter 13 case, the certificate may be reusable. If not, you must complete the post-filing education course before discharge under § 727(a)(11). Most providers offer the course for $10–$50 online.
Step 8: Attend the New 341 Meeting (Chapter 7)
Conversion creates a new 341 Meeting of Creditors with a new Chapter 7 trustee under § 341(a) (different from the Chapter 13 trustee who managed the prior case). The meeting is conducted by phone or video. The 60-day discharge objection window under Rule 4004 begins running from the new 341 meeting date.
What Happens to Money Already Paid to the Chapter 13 Trustee
Under § 1326(a)(2), Chapter 13 plan payments held by the trustee at conversion are returned to the debtor — minus the trustee’s percentage fee and any disbursements already made to creditors. This can be a meaningful cash recovery in cases that converted shortly before a scheduled disbursement.
What Happens to Pending Plan Modifications, Adversaries, and Claims
Pending Chapter 13 plan modifications terminate. Adversary proceedings filed in the Chapter 13 case generally continue in the Chapter 7 case. Claims filed in the Chapter 13 case are deemed filed in the Chapter 7 case under Rule 1019(2). Lift-stay motions and other pending matters carry forward.
When Conversion Makes Sense
- Material change in income — the debtor can no longer fund the Chapter 13 plan
- Job loss or significant medical expense after confirmation
- The Chapter 13 plan was infeasible from the start (e.g., a strategic Chapter 13 filed as a stopgap)
- The debtor now satisfies the Chapter 7 means test that originally precluded Chapter 7
- The asset profile has changed such that Chapter 7 exemptions now adequately protect property
When Conversion Is the Wrong Move
- The debtor is within 4 or 8 years of a prior discharge under § 727(a)(8) or § 1328(f) — conversion produces a no-discharge case
- Significant non-exempt assets exist that the Chapter 7 trustee will administer (sell)
- The Chapter 13 was filed specifically to cure mortgage arrears or strip a second mortgage — conversion abandons those benefits
- The debtor fails the Chapter 7 means test — conversion leads to dismissal
Frequently Asked Questions
How much does it cost to convert from Chapter 13 to Chapter 7?
The court charges a $25 conversion fee. If you have an attorney, an additional fee is typically charged for the conversion work — usually a few hundred dollars depending on what schedules need updating. The original Chapter 13 attorney fee paid through the plan up to the conversion date is generally retained by the attorney.
Can the trustee or a creditor object to conversion?
Conversion under § 1307(a) is a debtor right and cannot be defeated by objection — but the trustee or a creditor can move to convert under § 1307(c) and a debtor can move to convert under § 1307(d). The trustee may also raise concerns about bad-faith conversion timing under § 348(f)(2) which, if proven, brings post-petition property into the Chapter 7 estate.
Will I lose my house if I convert?
It depends on equity and exemptions. In Chapter 13, you keep the house by curing mortgage arrears through the plan. In Chapter 7, you keep the house if (a) the equity is fully covered by the available exemption (DC unlimited homestead under § 15-501 if owned 1,215+ days, or federal $31,575 under § 522(d)(1)) and (b) you stay current on the post-petition mortgage payment going forward. If equity exceeds the exemption, the trustee may administer the property — meaning sale. Conversion abandons the cure mechanism, so unpaid arrears that were going to be cured through the Chapter 13 plan must be paid outside bankruptcy or face foreclosure.
How fast does conversion take effect?
Effective the date the Notice of Conversion is filed under Bankruptcy Rule 1017(f). The 60-day Chapter 7 discharge objection window begins running from the new 341 meeting in the converted case, which is typically 30–45 days after conversion.