What is Conversion of a Bankruptcy Case?
A Conversion of a Bankruptcy case is where debtor converts or changes his Chapter 13 Bankruptcy into a Chapter 7 Bankruptcy. Bankruptcy Code Section 1307(a) states that the debtor may convert a Chapter 13 Bankruptcy to a case under Chapter 7 Bankruptcy at any time. Bankruptcy Code Section 1307(b) also states that the debtor may Dismiss his Chapter 13 Bankruptcy at any time. Any waiver of the debtor’s right to Dismiss is unenforceable.
Section 1307(c) of the Bankruptcy Code permits a party in interest, other than the debtor, to convert or Dismiss the Chapter 13 Bankruptcy into a Chapter 7 Bankruptcy. A party in interest can be the United States Trustee, the Bankruptcy Trustee, or a creditor. A Chapter 13 Bankruptcy can be converted or dismissed due to many factors, including unreasonable delay by the debtor that is prejudicial to creditors, nonpayment of any required fees or charges, failure to timely file a Chapter 13 Bankruptcy plan, revocation of an order of confirmation, failure to pay a domestic support obligation after the Bankruptcy filing, and numerous other reasons.
To learn more about a conversion of a bankruptcy case and how it may affect you, contact the bankruptcy experts at Jay Weller Legal Group.[/vc_column_text][/vc_column][vc_column width=”1/3″][vc_column_text][vfb id=3][/vc_column_text][/vc_column][/vc_row]