Convert Ch. 11 to Ch. 7/Sua Sponte Order
MOTION TO CONVERT CHAPTER 11 TO CHAPTER 7/SUA SPONTE ORDER
Under 11 U.S.C. Section 1112(a) the debtor may convert to a case under chapter 7 unless, the debtor is not a debtor in possession; the case originally was commenced as an involuntary case under this chapter; or the case was converted to a case under this chapter other than on the debtor’s request (fee due upon conversion).
Under 11 U.S.C. Section 1112(b) a party in interest may request that the case be converted to a case under chapter 7.
These matters must be set for a hearing within 30 days and the court must decide the motion not later than 15 days after the commencement of the 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.
There is no fee due if the UST or any U.S. Government agency filed the motion. There may be no fee due if the trustee files a certification that there are no funds available from the estate.
The filing should be accompanied by the Motion and a Proposed Order.
The Judge may convert a case without a motion being filed. Filing fee is not required.
Miscellaneous, Post Petition Debts pursuant to FRBP 1019(5)
Motions/Application/Contested Matters, Convert Case
B. Who Serves: Court
C. Service: Matrix