Savannah GA Chapter 7 lawyer

Savannah GA Chapter 7 lawyer

Conversion of chapter 11 to chapter 7 bankruptcy in Liberty County GA
A chapter 11 debtor has a one-time absolute right to convert the chapter 11 proceeding to a proceeding under chapter 7 unless (1) the debtor is not a debtor in possession, (2) the case originally was started as an involuntary case under chapter 11, or (3) the proceeding was converted to a case under chapter 11 but not at the debtors request. A debtor in a chapter 11 case does not have an absolute right to have the case dismissed upon request.

, at the request of a party in interest in the case or the US trustee, after notice and hearing and “for cause,” the judge will convert a chapter 11 proceeding to a case under chapter 7 or dismiss the case, for the best interest of creditors and the estate. The court will convert or dismiss a case “for cause” when there is a continuing loss to the estates, an inability to effectuate a plan, unreasonable delay that is prejudicial to creditors, denial or revocation of confirmation, or inability to work out a confirmed plan.

There are vital exceptions to the conversion process in a chapter 11 proceeding. Except when the debtor requests the conversion, section 1112(c) of the US Bankruptcy Code does not allow the court to convert a proceeding involving a farmer or charitable institution to a liquidation proceeding under chapter 7.

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