I could have gone with more popular C words like “Confirmation”, “Chapter” or “Creditor”, but I thought the other bankruptcy attorneys following this alphabet game would strike at those and I want to try and find the non-obvious or unpopular terms.
C is for Conversion.
Bankruptcy cases can be converted from one chapter to another for several reasons.
In Chapter 7 Bankruptcy, the debtor almost has an absolute right to convert his case to any other chapter of the Bankruptcy Code as long as the debtor is eligible and meets the requirements for the proposed converting chapter. 11 U.S.C. §706.
Why would a debtor want to convert their case from Chapter 7 to a different chapter? There is a variety of reasons:
- Debtors didn’t want certain property liquidated in a Chapter 7, so converted to Chapter 13 in order to protect the property.
- Debtors were not qualified to be in Chapter 7 by the means test or the filing was found to be an abuse.
Chapter 11 reorganization cases can be converted to chapter 7 pursuant to 11 U.S.C. §1112(a). A business could do this if they are the debtor in possession and they intend to liquidate the business. Cases can be converted to Chapter 12 or Chapter 13 if requested by the Debtor and the Debtor has not received a discharge of debt. 11 U.S.C. §1112(d).
Family Farmers in a Chapter 12 casehave an absolute right to convert their case to Chapter 7 “at any time”. 11 U.S.C. §1208(a). A broad reading of 11 U.S.C. §1208(e) may allow for the conversion of a Chapter 12 case to any other chapter of bankruptcy as long as the debtors meet the eligibility requirements for that chapter.
Finally, Chapter 13 debtors have an absolute right to convert their case to Chapter 7 “at any time”. 11 U.S.C. §1307(a). Chapter 13 cases can be converted to Chapter 11 or Chapter 12 if the debtors meet the eligibility requirements for that chapter and a Chapter 13 bankruptcy plan has not yet been confirmed. 11 U.S.C. §1307(d).
Why would a Chapter 12 or Chapter 13 debtor want to convert to Chapter 7?
- Circumstances may have changed that no longer make it possible for the debtor to commit to a plan.
- Debtor no longer wants to protect certain property from liquidation.
- Debtor may have satisfied paying secured creditors under the plan and decide to discharge the remainder of debt under Chapter 7.
Conversion of cases happens a lot. Bankruptcy cases always seem to be in flux and it requires a qualified bankruptcy attorney to analyze and advise the best course of action.
Other Bankruptcy Lawyers talking about the Letter C are as follows:
- Creditor-New York Bankruptcy Attorney Jay S. Fleischman
- Counseling-California Bankruptcy Lawyer, Cathy Moran
- Cars-San Francisco Bankruptcy Attorney-Jeena Cho
- Chapter 7-Marin County Bankruptcy Attorney, Catherine Eranthe
- Chapter Choice-Ormond Beach, FL Bankruptcy Attorney, Lewis Roberts
- Chapter of Relief-Taylor, MI Bankruptcy Attorney, Christopher McAvoy
- Competence and Compassion-Philadelphia Bankruptcy Lawyer, Chris Carr
- Cosignor-Cleveland Area Bankruptcy Lawyer, Bill Balena
- Counseling-Northern California Bankruptcy Attorney, Cathy Moran
- Cramdown-Colorado Springs Bankruptcy Attorney, Bob Doig
- Cramdown-Oahu Bankruptcy Attorney,Stuart Ing
- Cramdown-Metro Richmond Attorney, Mitchell Goldstein
- Credit Card Tips-Wisconsin Bankruptcy Lawyer, Bret Nason
- Credit Counseling-Chicago Bankruptcy Attorney, Kyle Lindsey
- Credit Counseling-Los Angeles Bankruptcy Attorney, Mark Markus
- Creditor-St. Clair Shores, MI Bankruptcy Attorney
- Creditor’s Meeting-Philadelphia Bankruptcy Lawyer, Raymond Kempinski
- Creditors-Livonia, MI Bankruptcy Attorney, Peter Behrmann