What Does It Mean to Convert a Bankruptcy Case?
Whether you are trying to determine whether it is possible to change the type of bankruptcy case you have filed for, or you have learned about an involuntary conversion in your bankruptcy case, it is important to discuss the specific details of your bankruptcy with a West Palm Beach bankruptcy attorney. In the meantime, the firm of Kelley, Kaplan & Eller can provide you with more information about converting a bankruptcy case, or conversion to another bankruptcy chapter. Both voluntary and involuntary conversions have specific requirements, and those are particular to the type of case initially filed and the type of case intended for the conversation. Consider the following information.
Defining Conversion to a Different Bankruptcy Chapter
What is conversion in the context of bankruptcy? In short, conversion is a term that is used to refer to changing from one chapter of bankruptcy to another. For example, a bankruptcy case might be converted from a Chapter 13 or Chapter 11 case to Chapter 7 bankruptcy, or from a Chapter 7 case to a Chapter 13 or Chapter 11 case. These are just some examples of the types of conversions that can occur in bankruptcy cases.
How a Conversion Happens in Bankruptcy
How does a bankruptcy conversation happen? Under the US Bankruptcy Code, there are different ways in which a conversion can occur. It can be requested by different parties involved in the bankruptcy case (and we will explain more about who can request a conversion below). In order for a conversion to occur, a party must request a conversion and the bankruptcy court must approve it. The reason for the conversion generally determines which party is making the request.
Multiple Parties May Request Conversion
Different parties can request a conversion to another chapter of bankruptcy under the US Bankruptcy Code, including the debtor and the creditor.
Typically, a debtor will request a conversion when their circumstances have changed in some way and they want to approach the bankruptcy process differently as a result of the changes in their circumstances. Common changes of circumstances include the loss of a job (when requesting a conversion from a reorganization bankruptcy to a liquidation bankruptcy, for example), or being hired for a full-time position that allows the debtor to restructure debts (when requesting a conversation from a liquidation bankruptcy to a reorganization bankruptcy, for example).
Creditors can also request a conversion and can ask the bankruptcy court to convert the case from one chapter to another. These requests typically involve a creditor requesting a conversion from a Chapter 7 case to a reorganization case so that they can recoup more money than they otherwise might in a liquidation bankruptcy.
Contact Our West Palm Beach Bankruptcy Attorneys Today
After filing for bankruptcy, there are various reasons that a party might request a conversion to another bankruptcy chapter, or that a bankruptcy court might order a conversion to another bankruptcy chapter. Whether you have questions about seeking a conversion in your bankruptcy case, or you have concerns about an involuntary conversion, an experienced West Palm Beach bankruptcy lawyer at Kelley, Kaplan & Eller can assist you. Contact our firm today to learn more about how we can assist you with any bankruptcy conversion questions or issues.
Source:
law.cornell.edu/uscode/text/11
