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) and subsection (c), on
    request of a party in interest, and after notice and a hearing, 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, for cause unless the
    court determines that the appointment under section 1104(a) of a
    trustee or an examiner is in the best interests of creditors and
    the estate.
      (2) The court may not convert a case under this chapter to a case
    under chapter 7 or dismiss a case under this chapter if the court
    finds and specifically identifies unusual circumstances
    establishing that converting or dismissing the case is not in the
    best interests of creditors and the estate, and the debtor or any
    other party in interest 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 converting or dismissing the case 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(a),
    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.