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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 Indiana, as in all states, the Bankruptcy Code permits a debtor to convert a Chapter 7 bankruptcy case to another chapter—specifically, Chapter 11, 12, or 13—provided the debtor meets the eligibility requirements for the new chapter. This provision is designed to give debtors the flexibility to choose the bankruptcy relief that best suits their situation. However, there is a restriction 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 a debtor is not allowed to switch back and forth between chapters indefinitely. The goal is to ensure that the debtor receives the appropriate relief while maintaining the integrity of the bankruptcy process.

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Bankruptcy

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

Individual & Family Legal Plan

Articles

Indiana State Code

Indiana State Code

Bankruptcy

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

Articles