11 U.S.C. § 1112 : US Code - Section 1112: Conversion or dismissal

Search 11 U.S.C. § 1112 : US Code - Section 1112: Conversion or dismissal

(a) The debtor may convert a case under this chapter to a case
under chapter 7 of this title unless -
(1) the debtor is not a debtor in possession;
(2) the case originally was commenced as an involuntary case
under this chapter; or
(3) the case was converted to a case under this chapter other
than on the debtor's request.
(b)(1) Except as provided in paragraph (2) of this subsection,
subsection (c) of this section, and section 1104(a)(3), on request
of a party in interest, and after notice and a hearing, absent
unusual circumstances specifically identified by the court that
establish that the requested conversion or dismissal is not in the
best interests of creditors and the estate, the court shall convert
a case under this chapter to a case under chapter 7 or dismiss a
case under this chapter, whichever is in the best interests of
creditors and the estate, if the movant establishes cause.
(2) The relief provided in paragraph (1) shall not be granted
absent unusual circumstances specifically identified by the court
that establish that such relief is not in the best interests of
creditors and the estate, if the debtor or another party in
interest objects and establishes that -
(A) there is a reasonable likelihood that a plan will be
confirmed within the timeframes established in sections 1121(e)
and 1129(e) of this title, or if such sections do not apply,
within a reasonable period of time; and
(B) the grounds for granting such relief include an act or
omission of the debtor other than under paragraph (4)(A) -
(i) for which there exists a reasonable justification for the
act or omission; and
(ii) that will be cured within a reasonable period of time
fixed by the court.
(3) The court shall commence the hearing on a motion under this
subsection not later than 30 days after filing of the motion, and
shall decide the motion not later than 15 days after commencement
of such hearing, unless the movant expressly consents to a
continuance for a specific period of time or compelling
circumstances prevent the court from meeting the time limits
established by this paragraph.
(4) For purposes of this subsection, the term "cause" includes -
(A) substantial or continuing loss to or diminution of the
estate and the absence of a reasonable likelihood of
rehabilitation;
(B) gross mismanagement of the estate;
(C) failure to maintain appropriate insurance that poses a risk
to the estate or to the public;
(D) unauthorized use of cash collateral substantially harmful
to 1 or more creditors;
(E) failure to comply with an order of the court;
(F) unexcused failure to satisfy timely any filing or reporting
requirement established by this title or by any rule applicable
to a case under this chapter;
(G) failure to attend the meeting of creditors convened under
section 341(a) or an examination ordered under rule 2004 of the
Federal Rules of Bankruptcy Procedure without good cause shown by
the debtor;
(H) failure timely to provide information or attend meetings
reasonably requested by the United States trustee (or the
bankruptcy administrator, if any);
(I) failure timely to pay taxes owed after the date of the
order for relief or to file tax returns due after the date of the
order for relief;
(J) failure to file a disclosure statement, or to file or
confirm a plan, within the time fixed by this title or by order
of the court;
(K) failure to pay any fees or charges required under chapter
123 of title 28;
(L) revocation of an order of confirmation under section 1144;
(M) inability to effectuate substantial consummation of a
confirmed plan;
(N) material default by the debtor with respect to a confirmed
plan;
(O) termination of a confirmed plan by reason of the occurrence
of a condition specified in the plan; and
(P) failure of the debtor to pay any domestic support
obligation that first becomes payable after the date of the
filing of the petition.
(c) The court may not convert a case under this chapter to a case
under chapter 7 of this title if the debtor is a farmer or a
corporation that is not a moneyed, business, or commercial
corporation, unless the debtor requests such conversion.
(d) The court may convert a case under this chapter to a case
under chapter 12 or 13 of this title only if -
(1) the debtor requests such conversion;
(2) the debtor has not been discharged under section 1141(d) of
this title; and
(3) if the debtor requests conversion to chapter 12 of this
title, such conversion is equitable.
(e) Except as provided in subsections (c) and (f), the court, on
request of the United States trustee, may convert a case under this
chapter to a case under chapter 7 of this title or may dismiss a
case under this chapter, whichever is in the best interest of
creditors and the estate if the debtor in a voluntary case fails to
file, within fifteen days after the filing of the petition
commencing such case or such additional time as the court may
allow, the information required by paragraph (1) of section 521,
including a list containing the names and addresses of the holders
of the twenty largest unsecured claims (or of all unsecured claims
if there are fewer than twenty unsecured claims), and the
approximate dollar amounts of each of such claims.
(f) Notwithstanding any other provision of this section, a case
may not be converted to a case under another chapter of this title
unless the debtor may be a debtor under such chapter.