Applicant Converting Chapter 13 to Chapter 7 Bankruptcy

[Michael S.]

I have an individual interested in applying for a vacant townhome I own, but is asking whether or not a bankruptcy filing will be an automatic 'no' for the application. I haven't dealt with bankruptcies and am only marginally familiar with the implications. 

This potential applicant filed for bankruptcy (I assume Chapter 13) 9 months ago, and is in the process of converting it to Chapter 7 to get rid of their house and move back to their home town (where my rental is located). It is my general understanding that to convert to Chapter 7 from 13, you have to not be able to afford the payment plan the courts originally ordered...

Anyone had a similar situation? Thoughts on whether this is an automatic deal breaker?