Laws: Cases and Codes : U.S. Code : Title 11 : Section 1112


   
U.S. Code as of: 01/19/04
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) Except as provided in subsection (c) of this section, on
    request of a party in interest or the United States trustee or
    bankruptcy administrator, and after notice and a hearing, the court
    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, for cause,
    including - 
        (1) continuing loss to or diminution of the estate and absence
      of a reasonable likelihood of rehabilitation;
        (2) inability to effectuate a plan;
        (3) unreasonable delay by the debtor that is prejudicial to
      creditors;
        (4) failure to propose a plan under section 1121 of this title
      within any time fixed by the court;
        (5) denial of confirmation of every proposed plan and denial of
      a request made for additional time for filing another plan or a
      modification of a plan;
        (6) revocation of an order of confirmation under section 1144
      of this title, and denial of confirmation of another plan or a
      modified plan under section 1129 of this title;
        (7) inability to effectuate substantial consummation of a
      confirmed plan;
        (8) material default by the debtor with respect to a confirmed
      plan;
        (9) termination of a plan by reason of the occurrence of a
      condition specified in the plan; or
        (10) nonpayment of any fees or charges required under chapter
      123 of title 28.

      (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.



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