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 New Hampshire, 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 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 once a debtor has converted to Chapter 7, they cannot then convert to another chapter; the law is designed to prevent debtors from repeatedly switching chapters in an attempt to manipulate or delay the bankruptcy process. It's important for debtors to consider their options and eligibility carefully before deciding to convert their bankruptcy case.