Conversion

Usually, for a debtor, something far less than a “religious” experience.

The changing of a bankruptcy case from one chapter to another, sometimes at the debtor’s request or with the debtor’s consent, other times not. A conversion without the debtor’s consent is normally the result of an ineffective or plodding reorganization effort, leading a creditor or other party in interest to ask the court to convert a Chapter 11 case into a Chapter 7 case so that the debtor’s assets are promptly liquidated to prevent further erosion in the value of the assets of the bankruptcy estate.

Bankruptcy Code §§ 706, 1112.

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