In the context of bankruptcy, "conversion" refers to the process of changing a bankruptcy case from one chapter of the Bankruptcy Code to another. For instance, a case initially filed under Chapter 7 may be converted to Chapter 13 if the debtor qualifies for Chapter 13. Despite the change in chapter, the case itself remains the same as it was originally filed.
Conversion is a significant aspect of bankruptcy law, primarily used in consumer bankruptcy cases. It allows debtors to shift their case to a more suitable chapter based on their financial situation. Legal practitioners often encounter conversion during bankruptcy proceedings, and users can manage some aspects of this process using legal templates, such as those offered by US Legal Forms.
Here are a couple of examples of abatement:
For example, a debtor who initially files for Chapter 7 bankruptcy may find that their financial situation has changed, making them eligible for Chapter 13. They can file a motion to convert their case, allowing them to create a repayment plan to address their debts over a three to five-year period. (hypothetical example)
The primary statute governing conversion in bankruptcy is the Bankruptcy Code, specifically:
| State | Conversion Rules |
|---|---|
| California | Allows conversion from Chapter 7 to Chapter 13 under specific conditions. |
| Texas | Similar provisions as federal law; conversion is generally permitted. |
| Florida | Conversion is allowed, but debtors must meet eligibility criteria. |
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
| Term | Definition | Key Differences |
|---|---|---|
| Dismissal | Ending a bankruptcy case without discharge of debts. | Dismissal ends the case entirely, while conversion changes its chapter. |
| Discharge | Relief from personal liability for certain debts. | Discharge is the end result of a bankruptcy case, while conversion is a procedural change. |
If you are considering converting your bankruptcy case, it is essential to:
You can also explore US Legal Forms' templates for assistance in managing your bankruptcy proceedings.
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You must file a motion to convert your case with the bankruptcy court and meet eligibility requirements for the new chapter.