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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 New Jersey, 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—if the debtor meets the eligibility requirements for the new chapter. This provision is designed to provide the debtor with the most appropriate form of relief based on their specific financial situation. However, there is a restriction to prevent abuse of the system: if a bankruptcy case has already been converted to Chapter 7 from another chapter, the debtor cannot convert it again. This rule ensures that debtors do not repeatedly switch between chapters in an attempt to manipulate or unduly prolong the bankruptcy process. It's important to note that while these rules are based on federal law, local bankruptcy courts in New Jersey may have additional procedural guidelines that must be followed during the conversion process.

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Bankruptcy

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

Individual & Family Legal Plan

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New-Jersey State Code

New-Jersey State Code

Bankruptcy

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

Articles