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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 Michigan, as in all states, the federal Bankruptcy Code governs the process of bankruptcy, including the conversion of cases between different chapters. A debtor who has filed for bankruptcy under Chapter 7 has the right to convert their case to another chapter—specifically, Chapter 11, 12, or 13—if they meet the eligibility requirements for the new chapter. This provision is designed to provide the debtor with the most appropriate form of relief for their financial 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 while a debtor has the flexibility to convert their case once, they cannot repeatedly switch between chapters in an attempt to gain undue advantage or delay the proceedings.

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Bankruptcy

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

Individual & Family Legal Plan

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Michigan State Code

Michigan State Code

Bankruptcy

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

Articles