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socrateaser
socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 38129
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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For Socrates Only. I am seriously considering converting

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For Socrates Only.
I am seriously considering converting my Ch 13 to a 7.
The primary reason is that a post-petition creditor (whose account is highly contestable) claims that I owe them a five-figure debt which is the result of a scam in which I got entangled.
Would it likely be acceptable to the court to state that the reason for my conversion motion is to include this potential liability ?
Hello again,

Would you be so kind as to provide a positive rating for my answer to your last question? Thanks in advance.

Re your new question, you asked:

I am seriously considering converting my Ch 13 to a 7. The primary reason is that a post-petition creditor (whose account is highly contestable) claims that I owe them a five-figure debt which is the result of a scam in which I got entangled.

Would it likely be acceptable to the court to state that the reason for my conversion motion is to include this potential liability ?


A: You don't need a noticed motion, nor do you need to state a reason to convert a Chapter 13 to a Chapter 7. FRBP 1017(f)(3) provides: "A chapter 12 or chapter 13 case shall be converted without court order when the debtor files a notice of conversion under §§ 1208(a) or 1307(a). The filing date of the notice becomes the date of the conversion order for the purposes of applying § 348(c) and Rule 1019. The clerk shall promptly transmit a copy of the notice to the United States trustee."

You just file a notice of conversion with the court, and you're in Chapter 7. There's probably a local form for the notice, so check the bankruptcy court website.

P.S. The only way to stop the proliferation of incorrect answers in this forum is to demand a refund whenever you discover that an answer has been provided in error (including mine, if that happens to occur). Letting it go, merely because you have a subscription, provides an incentive for others to continue to perform incompetently.

Hope this helps.
socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 38129
Experience: Attorney and Real Estate Broker -- Retired (mostly)
socrateaser and other Bankruptcy Law Specialists are ready to help you
Customer: replied 3 years ago.

I cant find a local form anywhere for Notice of Conversion (Oregon). Do you think a simple letter would suffice since I am pro se ?

A letter will not suffice.

Here is a form for the Central District of California. You can type up a plain-paper (line numbered) pleading with the same info and change the court name, and that would do it. Don't forget the proof of service on the trustee, creditors, judge, etc.

Note: Alternatively, you could look in PACER for a random Oregon Chapter 13 case and try to find a filed notice of conversion pleading that you can download.

Hope this helps.
Customer: replied 3 years ago.

According to my BK case manager in OR, there is neither a form for a notice of nor motion for conversion. I was told that a personal letter to the court containing the pertinent data and a brief explanation of the reason for converting will suffice.

Thanks

Well, it's been a real long time since I have been in the Oregon Bankruptcy Court. I wasn't aware that pro se's were appointed a "case manager," and I find no rule or general order on the Bankruptcy Court's website providing for such an appointment.

Obviously, I'm not going to deny that you received advice from court personnel as to how you should proceed to convert your case. All I can say is that the statutes, rules and case law of the federal bankruptcy courts require no motion for a debtor to voluntarily convert from Chapter 13 to Chapter 7 -- and In re DeFrantz, 454 BR 108 (U.S. 9th Cir. 2011), which is the controlling case for Oregon Bankruptcy courts, holds that, "the Rule contemplates that a debtor may convert his or her chapter 13 case by simply filing a notice of conversion and not a motion."

Thus, only a notice of conversion is required, and there is no legal requirement to explain why you are choosing to convert. As long as you can satisfy the means test as to your income, you can convert, without risking having your case dismissed as being in "bad faith."

So, if the case manager says that you can send a letter to the judge and thereby convert to Chapter 7 from Chapter 13, then my response is, "Great, go for it!"

Hope this helps.

You can do this by notice now no motion required.Here is a sample your bankruptcy clerk will have ones for your district here.

http://www.hib.uscourts.gov/forms/local/hib_2083-1a_NConversionCh13.pdf