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Bankruptcy

Chapter 7 bankruptcy—conversion to chapter 11, 12, or 13

In order to accord the debtor complete relief, the Bankruptcy Code allows the debtor to convert a chapter 7 case to a case under chapter 11, 12, or 13 (6) as long as the debtor is eligible to be a debtor under the new chapter. However, a condition of the debtor's voluntary conversion is that the case has not previously been converted to chapter 7 from another chapter. Thus, the debtor will not be permitted to convert the case repeatedly from one chapter to another.

In Delaware, as in other states, the Bankruptcy Code provides debtors with the option to convert their bankruptcy case from Chapter 7 to another chapter, specifically Chapter 11, 12, or 13, if they meet the eligibility requirements for the new chapter. This provision is designed to offer debtors the most appropriate form of relief based on their particular financial situation. However, there is a restriction in place to prevent abuse of the system: a debtor cannot convert their case if it has already been converted to Chapter 7 from another chapter. This means that while a debtor has the right to convert their case once, they cannot repeatedly switch between chapters. It's important for debtors to consult with an attorney to understand their eligibility and the implications of converting their bankruptcy case under the federal Bankruptcy Code.

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Bankruptcy

Chapter 7 bankruptcy—conversion to chapter 11, 12, or 13

Individual & Family Legal Plan

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Delaware State Code

Delaware State Code

Bankruptcy

Chapter 7 bankruptcy—conversion to chapter 11, 12, or 13

Articles