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§ 706

In re Buccolo

Ruling
Reconversion from chapter 7 to chapter 13 denied as proposed plan was not filed in good faith and was not feasible.
Procedural posture

Debtor filed a petition under chapter 13 of the Bankruptcy Code and subsequently obtained permission to convert her case to one under chapter 7. The debtor filed a motion under 11 U.S.C.S. § 706(a), seeking permission to reconvert her chapter 7 case to a chapter 13 case. The chapter 7 trustee and a creditor objected to the debtor's motion, questioning the debtor's good faith and the feasibility of her chapter 13 plan.

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Consumer opinion summary, case decided on November 25, 2008 , LexisNexis #0109-068

In re Splawn

Ruling
Chapter 7 debtors who were denied discharge on grounds of bad faith forfeited right to convert to chapter 13.
Procedural posture

Debtors filed a petition under chapter 7 of the Bankruptcy Code, and a creditor filed an adversary proceeding, seeking an order denying the debtors' discharge. The court denied the debtors' discharge, and the debtors filed a motion under 11 U.S.C.S. § 706, seeking an order allowing them to convert their case to one under chapter 13 of the Bankruptcy Code. The creditor filed an objection to the debtors' motion.

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Consumer opinion summary, case decided on April 25, 2008 , LexisNexis #0608-117

In re Grant

Ruling
Conversion to chapter 13 denied due to debtor's bad faith.
Procedural posture

A bankruptcy debtor moved to convert his case from chapter 7 to chapter 13, and the trustee and a creditor objected to conversion on the ground that the debtor was not seeking conversion in good faith.

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Consumer opinion summary, case decided on February 27, 2008 , LexisNexis #0408-048

In re Shankman

Ruling
Debtor who filed chapter 13 case while original chapter 7 case was pending allowed to convert chapter 7 case to chapter 13 after dismissal of chapter 13 case.
Procedural posture

The debtor, who already had a chapter 7 case pending, filed a chapter 13 petition. The chapter 7 trustee and the primary secured creditor moved for the dismissal of the newly filed chapter 13 case. The debtor requested that the motions to dismiss be denied, and alternatively moved to convert his pending chapter 7 case to one under chapter 13 pursuant to 11 U.S.C.S. § 706(a).

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Consumer opinion summary, case decided on February 27, 2008 , LexisNexis #0408-011

In re Irmen

Ruling
Motion to convert denied as filed in bad faith.
Procedural posture

Debtor filed a voluntary petition under chapter 7 of the Bankruptcy Code, and six months later, he filed a motion to convert his case to one under chapter 11, pursuant to 11 U.S.C.S. § 706(a). Two creditors and the chapter 7 trustee filed objections to the debtor's motion.

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Consumer opinion summary, case decided on February 01, 2008 , LexisNexis #0308-082

In re Goines

Ruling
Conversion to chapter 13 denied due to chapter 7 debtor's pre- and postpetition bad faith conduct.
Procedural posture

A debtor filed a motion to convert her chapter 7 bankruptcy case to chapter 13, pursuant to 11 U.S.C. § 706. The trustee objected to the motion.

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Consumer opinion summary, case decided on November 13, 2007 , LexisNexis #0108-123

In re Muth

Ruling
Debtor who converted case to chapter 7 could not reconvert to chapter 13.
Procedural posture

Chapter 7 debtors filed a motion pursuant to 11 U.S.C. § 706(a) to reconvert their case to chapter 13.

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Consumer opinion summary, case decided on November 08, 2007 , LexisNexis #0108-011

In re Johnson

Ruling
Chapter 7 debtor's motion to reconvert to chapter 13 denied as late notice of deadline for objection was prejudicial to creditors.
Procedural posture

Debtors originally filed a voluntary petition under chapter 13 and later converted their case to chapter 7 in response to the chapter 13 trustee's motion to dismiss for failing to make timely payments. Debtors sought to reconvert their chapter 7 case to a chapter 13 case under 11 U.S.C. § 706(a).

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Consumer opinion summary, case decided on October 29, 2007 , LexisNexis #1107-134

In re Murray

Ruling
Discovery of extraordinary value of unique license plate was not grounds to reconsider conversion of case to chapter 7.
Procedural posture

After the debtor voluntarily converted his case to a case under chapter 13, the chapter 7 trustee subsequently learned of a valuable Delaware motor vehicle license plate with an estimated value between $200,000 and $250,000. The debtor failed to schedule his ownership of the license plate. The chapter 7 trustee moved to reconsider the order converting the debtor's case.

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Consumer opinion summary, case decided on October 24, 2007 , LexisNexis #1107-050

In re Mercado

Ruling
Voluntary conversion from chapter 7 to chapter 13 vacated due to debtors' bad faith in converting nonexempt assets into exempt homestead.
Procedural posture

The chapter 7 trustee filed an objection to the debtors'purported conversion of their case from a chapter 7 to a chapter 13 claim, asserting that the debtors had acted in bad faith, because they converted nonexempt assets into an alleged exempt homestead when they had debts of at least $50,000. The trustee noted that the Supreme Court's recent ruling in Marrama v. Citizens Bank of Mass. was controlling precedent.

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Consumer opinion summary, case decided on September 24, 2007 , LexisNexis #1007-116