A debtor’s right to convert a Chapter 12 bankruptcy case to a Chapter 7 bankruptcy case (a “straight bankruptcy” or “liquidation” proceeding) is a “one-time only” right. Once the case has been converted to a Chapter 7 bankruptcy, the debtor may not convert back to a Chapter 12 case. The farmer-debtor or fisherman-debtor may convert a Chapter 12 case to a Chapter 7 case at any time. However, in some jurisdictions, the debtor must qualify under the means test to be a Chapter 7 debtor. (You and your bankruptcy attorney should check the governing law in your jurisdiction regarding the means test.) The conversion must be voluntary on the part of the farmer or fisherman. The court may not convert a Chapter 12 case to a Chapter 7 case for cause upon request of a party in interest. No provision allows a Chapter 12 debtor to convert to a Chapter 11 (business reorganization) case. On motion of a party in interest, and after notice and a hearing, the court may dismiss the case for cause, including:
Areas Served:We handle bankruptcy cases through the mid-Hudson Valley including these counties and communities. Counties: Orange, Dutchess, Rockland, Westchester. Communities: Arlington, Beacon, Haverstraw, Middletown, Monsey, Mount Kisco, New City, Newburgh, Ossining, Peekskill, Poughkeepsie, Spring Valley, Stony Point, Suffern, West Haverstraw.