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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.

Under Montana law, as is consistent with federal bankruptcy law, a debtor who has filed for bankruptcy under Chapter 7 has the option 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 in place to prevent abuse of the system: if the debtor's case was already converted to Chapter 7 from another chapter, they cannot convert it again. This rule ensures that debtors do not repeatedly switch between chapters in an attempt to unduly benefit from the bankruptcy process. It's important to note that while state courts in Montana may handle certain aspects of bankruptcy proceedings, bankruptcy law is predominantly federal, and the U.S. Bankruptcy Code governs these conversions.

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Bankruptcy

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

As a LegalFix Member You Will Be an Important Client of Local Law Firms

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Montana State Code

Montana State Code

Bankruptcy

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

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