(a)The debtor may convert a case under this chapter to a case under chapter 11, 12, or 13 of this title at any time, if the case has not been converted under section
1307 of this title. Any waiver of the right to convert a case under this subsection is unenforceable.
(b)On request of a party in interest and after notice and a hearing, the court may convert a case under this chapter to a case under chapter
11 of this title at any time.
(c)The court may not convert a case under this chapter to a case under chapter 12 or 13 of this title unless the debtor requests or consents to such conversion.
(d)Notwithstanding any other provision of this section, a case may not be converted to a case under another chapter of this title unless the debtor may be a debtor under such chapter.
Section 706(a) of the House amendment adopts a provision contained in the Senate amendment indicating that a waiver of the right to convert a case under section
706(a) is unenforceable. The explicit reference in title 11 forbidding the waiver of certain rights is not intended to imply that other rights, such as the right to file a voluntary bankruptcy case under section
301, may be waived.
Section 706 of the House amendment adopts a similar provision contained in H.R. 8200 as passed by the House. Competing proposals contained in section
706(c) andsection 706(d) of the Senate amendment are rejected.
senate report no. 95–989
Subsection (a) of this section gives the debtor the one-time absolute right of conversion of a liquidation case to a reorganization or individual repayment plan case. If the case has already once been converted from chapter 11 or 13 to chapter 7, then the debtor does not have that right. The policy of the provision is that the debtor should always be given the opportunity to repay his debts, and a waiver of the right to convert a case is unenforceable.
Subsection (b) permits the court, on request of a party in interest and after notice and a hearing, to convert the case to chapter 11 at any time. The decision whether to convert is left in the sound discretion of the court, based on what will most inure to the benefit of all parties in interest.
Subsection (c) is part of the prohibition against involuntary chapter 13 cases, and prohibits the court from converting a case to chapter 13 without the debtor’s consent.
Subsection (d) reinforces section
109 by prohibiting conversion to a chapter unless the debtor is eligible to be a debtor under that chapter.
2005—Subsec. (c). Pub. L. 109–8inserted “or consents to” after “requests”.
1994—Subsec. (a). Pub. L. 103–394substituted “1208, or 1307” for “1307, or 1208”.
1986—Subsec. (a). Pub. L. 99–554, § 257(q)(1), inserted references to chapter 12 and section
1208 of this title.
Subsec. (c). Pub. L. 99–554, § 257(q)(2), inserted reference to chapter 12.
Effective Date of 2005 Amendment
Amendment by Pub. L. 109–8effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 ofPub. L. 109–8, set out as a note under section
101 of this title.
Effective Date of 1994 Amendment
Amendment by Pub. L. 103–394effective Oct. 22, 1994, and not applicable with respect to cases commenced under this title before Oct. 22, 1994, see section 702 ofPub. L. 103–394, set out as a note under section
101 of this title.
Effective Date of 1986 Amendment
Amendment by Pub. L. 99–554effective 30 days after Oct. 27, 1986, but not applicable to cases commenced under this title before that date, see section 302(a), (c)(1) ofPub. L. 99–554, set out as a note under section
581 of Title
28, Judiciary and Judicial Procedure.
The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.
The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013
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Statutes at Large
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