Can I convert my Chapter 11 bankruptcy to a Chapter 7 bankruptcy?

Yes, it is possible to convert your Chapter 11 bankruptcy to a Chapter 7 bankruptcy in California. Under the Bankruptcy Code, it is possible to convert “at any time” from a Chapter 11 bankruptcy to a Chapter 7 bankruptcy. However, it is important to keep in mind that this procedure cannot be done on a whim as you must receive court approval to convert. The court will review your Chapter 11 bankruptcy plan and determine if it is feasible and would be a suitable option for you to convert. Additionally, the court will consider whether it would be beneficial to you to convert the bankruptcy to a Chapter 7. This can include cost, time, and effort you may save by making the conversion. The process to convert is quite specific, but overall boils down to filing a motion to convert from a Chapter 11 to a Chapter 7 bankruptcy. Additionally, you will be expected to provide the court with further evidence on the benefits for you to convert. If the court approves your motion and conversion, you will proceed to the Chapter 7 process. All remaining assets in your Chapter 11 estate will be liquidated, and any remaining debts will be discharged. It is important to keep in mind that not all debts may be discharged as some are non-dischargeable, but the majority of debts will be eliminated. It is important to keep in mind that the court can deny your motion to convert and you can be required to stay in your Chapter 11 bankruptcy. Therefore, it is important that you understand the process, the potential benefits, and potential repercussions before attempting to make this conversion.

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