§ 149.2     Conversion from Chapter 12 to Chapter 13
Cite as:    Keith M. Lundin, Lundin On Chapter 13, § 149.2, at ¶ ____, LundinOnChapter13.com (last visited __________).
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Whether by accident or design, there is no provision of Chapter 12 permitting or prohibiting conversion to Chapter 13. There are no reported decisions on the subject. It is likely that the absence of statutory authority will be interpreted to prohibit conversion from Chapter 12 to Chapter 13. As a practical matter, only a Chapter 12 debtor with dischargeability problems is likely to consider conversion from Chapter 12 to Chapter 13.1 Chapter 12 is the more powerful of the chapters, and most debtors who can qualify for Chapter 12 stay in that chapter.2


 

1  The discharge upon completion of payments in a Chapter 13 case is broader than any discharge available in a Chapter 12 case. Compare 11 U.S.C. § 1328(a), with 11 U.S.C. § 1228(a). In particular, the “fraud” exceptions in § 523(a)(2), (4) and (6) are exceptions to discharge upon completion of payments in a Chapter 12 case but are not exceptions to discharge upon completion of payments in a Chapter 13 case. Compare 11 U.S.C. § 1328(a)(2), with 11 U.S.C. § 1228(a)(2).

 

2  See also § 147.1  Standing, Procedure and Strategic Considerations and § 147.2  Incentives to Convert to Chapter 12 after BAPCPA (conversion from Chapter 13 to Chapter 12).