If you are in a Chapter 13 or Chapter 7 bankruptcy and your situation changes, then you have the option of converting to the other chapter. For instance, if you are in a Chapter 13 bankruptcy, and you lose your job or have a reduction in income then you can convert to a Chapter 7 if you cannot afford the Chapter 13 Plan payments.
Conversions in Bankruptcy
You must file the conversion prior to the case being dismissed if the trustee files a Motion to Dismiss for failure to make payments. If you are in a Chapter 7 and you fall behind on your house or car payments, then you can convert into a Chapter 13 to help you get caught up.