§ 139.1 — Summary of Part 8

Revised: September 28, 2009

[1]

It is an unfortunate fact of Chapter 13 practice that too many cases eventually convert to Chapter 7 or are dismissed.1 This part deals with the procedure and substance of motions to dismiss or convert. Although more rare, conversion to Chapter 11 and Chapter 12 is also covered. Conversions from Chapters 7, 11 and 12 to Chapter 13 are addressed. Special attention is given to the disposition of money held by the Chapter 13 trustee at conversion or dismissal. The effects of conversion and dismissal on exemptions, lien avoidance, administrative expenses and postpetition claims are considered. Changes made to conversion and dismissal by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA)2 are referenced here but discussed in detail in Part 9.


 

1  Statistics compiled by the Bankruptcy Division of the Administrative Office of the United States Courts for the years since October of 1979 reveal that more than half of all Chapter 13 cases are closed by conversion or dismissal. These data are not good measures whether a particular Chapter 13 case was “successful.”

 

2  Pub. L. No. 109-8, 119 Stat. 23 (2005).