- Leader of Arizona School District Files for Chapter 7 Bankruptcy (May 24, 2013)
- Study Says Cancer Patients More Likely File Bankruptcy (May 17, 2013)
- Investment Bank Ledgemont Capital Files for Chapter 7 Bankruptcy (May 10, 2013)
- Vacuum Manufacturer Oreck Files for Chapter 11 Bankruptcy Help (May 13, 2013)
- Gay Couple Makes History by Filing for Joint Bankruptcy Help (May 06, 2013)
Converted Chapter 7 Cases Can Be Deemed Abusive
March 25, 2011
A federal bankruptcy panel has recently overturned previous court judgments by establishing that Chapter 7 bankruptcy filings can still be deemed abusive even if they started out as Chapter 13 bankruptcy filings, and were then converted.
The matter was first brought up when two debtors in Minnesota and Iowa filed for Chapter 13 bankruptcy, then converted their filings to Chapter 7, Reuters reports. Chapter 13 bankruptcy has some advantages over Chapter 7, but it requires the debtor to have a steady income while Chapter 7 does not, according to the Administrative Office of the U.S. Courts.
The trustee then reportedly claimed abuse in their filings, as it was suspected that their monthly incomes exceeded the established threshold. The trustee's petitions to dismiss the bankruptcy cases due to this alleged abuse were rejected by bankruptcy courts on the grounds that the cases had not started out under Chapter 7 bankruptcy.
The 8th U.S. Circuit Bankruptcy Appellate Panel rejected the courts' reasoning, however, ruling that Chapter 7 bankruptcy can be dismissed if abuse is detected - regardless of what chapter of the bankruptcy code the case started under.
PAID ATTORNEY ADVERTISEMENT: THIS WEB SITE IS A GROUP ADVERTISEMENT AND THE PARTICIPATING ATTORNEYS ARE INCLUDED BECAUSE THEY PAY AN ADVERTISING FEE. It is not a lawyer referral service or prepaid legal services plan. Total Bankruptcy is not a law firm. Your request for contact will be forwarded to the local lawyer who has paid to advertise in the ZIP code you provide. Total Bankruptcy does not endorse or recommend any lawyer or law firm who participates in the network nor does it analyze a person's legal situation when determining which participating lawyers receive a person's inquiry. It does not make any representation and has not made any judgment as to the qualifications, expertise or credentials of any participating lawyer. No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers. The information contained herein is not legal advice. Any information you submit to Total Bankruptcy does not create an attorney-client relationship and may not be protected by attorney-client privilege. Do not use the form to submit confidential, time-sensitive, or privileged information. All photos are of models and do not depict clients. All case evaluations are performed by participating attorneys. An attorney responsible for the content of this Site is Kevin W. Chern, Esq., licensed in Illinois with offices at 25 East Washington, Suite 400, Chicago, Illinois 60602. To see the attorney in your area who is responsible for this advertisement, please click here, or call 866-200-8052.
FLORIDA ONLY: Total Bankruptcy is considered a lawyer referral service in the state of Florida under the Florida Rules of Professional Conduct. By all other standards, Total Bankruptcy is a group advertisement and not a lawyer referral service.
If you live in Mississippi, Missouri, New York or Wyoming, please click here for additional information.
By an Act of Congress and the President of the United States, we are a federal Debt Relief Agency. Attorneys and/or law firms promoted through this Web site are also federally designated Debt Relief Agencies. They help people file for relief under the U.S. Bankruptcy Code. Disclosures Required Under the U.S. Bankruptcy Code.