Change in Circumstances

• A debtor who files for Chapter 13 bankruptcy in Oklahoma must have regular income, because he will be making payments into a Chapter 13 debt repayment plan each month. If the debtor's circumstances change, he should contact his bankruptcy attorney. For instance, if the debtor loses his job, he will not be able to complete a Chapter 13 debt repayment plan. To prevent his case from being dismissed because of missed payments, the debtor should attempt to convert to Chapter 7 bankruptcy.
  
  

Means Test

• Before the debtor can convert to Chapter 7 bankruptcy, he must take the means test again. A Chapter 13 plan can last for years, so within the past few months or years, the debtor's income will have likely changed. The debtor should compare his family income to the median family income for a family of the same size in Oklahoma. As of November 2010, Oklahoma's median incomes were $36,289 for a single earner; $48,909 for a family of two; $53,261 for a family of three; and $63,004 for a family of four. Add $7,500 for each family member in excess of four. If the debtor's median family income is less than the state median, he can convert to Chapter 7. If the debtor's median family income is more than the state median, he needs to calculate his monthly disposable income to determine if he can convert to Chapter 7.
  
  

Disposable Income

• The debtor calculates his monthly disposable income by deducting his allowable monthly expenses from his monthly income. If the debtor's monthly disposable income is less than $100, he can convert to Chapter 7. If the debtor's monthly disposable income is more than $100, but that amount would not pay at least 25 percent of his debts over the next 60 months, then he can convert to Chapter 7. If the debtor's monthly disposable income is more than $100, and that amount would pay 25 percent of his debts over the next 60 months, then he cannot convert to Chapter 7.
  
  

Notice of Conversion

• If the debtor meets the requirements for converting to Chapter 7 bankruptcy, he must file a notice of conversion with the Oklahoma bankruptcy court handling his case. He should enlist the help of his bankruptcy attorney to accomplish this task.