An Illinois Order Converting Case Under Chapter 11 To Case Under Chapter 7 is a court order issued by the Bankruptcy Court in the US state of Illinois. This order allows a bankruptcy case filed under Chapter 11 of the Bankruptcy Code to be converted to a case filed under Chapter 7 of the Bankruptcy Code. This conversion is typically done when the debtor is unable to meet the financial requirements of a Chapter 11 reorganization, or if the creditors believe that liquidation of assets is the best way to accomplish a repayment of debt. The order is issued by the court after a hearing at which the debtor and creditors are present. The order outlines the terms and conditions of the conversion, including the distribution of assets among the creditors. The types of Illinois Order Converting Case Under Chapter 11 To Case Under Chapter 7 include: 1) Conversion of a Chapter 11 Case to a Chapter 7 Case: This type of order is issued when a debtor is unable to restructure its debt and must liquidate its assets in order to repay its creditors. 2) Conversion of a Joint Chapter 11 Case to a Joint Chapter 7 Case: This type of order is issued when two or more debtors are unable to restructure their joint debt and must liquidate their assets in order to repay their creditors. 3) Conversion of a Chapter 11 Case to a Chapter 13 Case: This type of order is issued when a debtor is able to restructure its debt but cannot meet the financial requirements of a Chapter 11 reorganization. The debtor must then file for a Chapter 13 bankruptcy and reorganize its debt under the terms of a repayment plan.
Illinois Order Converting Case Under Chapter 11 To Case Under Chapter 7
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Chapter 7 is a ?liquidation? bankruptcy that doesn't require a repayment plan but does require you to sell some assets to pay creditors. Chapter 11 is a ?reorganization? bankruptcy for businesses that allows them to maintain day-to-day operations while creating a plan to repay creditors.
A debtor in a case under chapter 11 has a one-time absolute right to convert the chapter 11 case to a case under chapter 7 unless: (1) the debtor is not a debtor in possession; (2) the case originally was commenced as an involuntary case under chapter 11; or (3) the case was converted to a case under chapter 11 other
Converting to Chapter 7 lets filers out of the three- to five-year Chapter 13 plan and erases qualifying debts in as little as four months. Conversion can be a great option, especially when you don't qualify to modify your Chapter 13 payment.
A debtor in a case under chapter 11 has a one-time absolute right to convert the chapter 11 case to a case under chapter 7 unless: (1) the debtor is not a debtor in possession; (2) the case originally was commenced as an involuntary case under chapter 11; or (3) the case was converted to a case under chapter 11 other
Most bankruptcy cases pass through the bankruptcy process with little objection by creditors. Because the bankruptcy system is encoded into U.S. law and companies can prepare for some debts to discharge through it, creditors usually accept discharge and generally have little standing to contest it.
Assuming that converting to Chapter 7 is in the best interest of creditors, the court will grant the motion and a trustee will be appointed to liquidate the debtor's assets and distribute the proceeds to creditors.
A Motion to Convert/Reconvert Case to Chapter 7 is generally filed by the debtor or debtor's counsel, but may also be filed by the trustee or other parties in interest to request that a case filed under a different chapter be converted to Chapter 7.