Court Examines Split of Authority Regarding Reconversion Of A Case From 7 to 13

Court Examines Split of Authority Regarding Reconversion Of A Case From 7 to 13

The Bankruptcy Court for the Central District of California recently reviewed the issue of whether a debtor may reconvert her case from a chapter 7 to 13.

The Debtor filed a Chapter 13 voluntary petition on December 29, 2020. Her case was converted to Chapter 7 on February 8, 2021. On April 6, 2021, Debtor filed a motion to to convert the case from chapter 7 to 13.

Section 706(a) of the Bankruptcy Code states: “The debtor may convert a case under this chapter to a case under chapter 11, 12, or 13 of this title at any time, if the case has not been converted under section 1112, 1208, or 1307 of this title.”

The Court examined the split of authority on this issue and discussed the approaches taken to resolve this issue including plain language approach, the court’s discretion approach, the Section 706(c) approach and suggested a Section 707 approach.

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