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

Yes, you can convert your Chapter 11 bankruptcy to a Chapter 7 bankruptcy in North Dakota. In fact, it may be beneficial depending on the circumstances. Chapter 11 bankruptcy is usually filed by business entities, but it can also be filed by individuals. When filed by an individual, Chapter 11 provides financial reorganization in order to pay off creditors in a more organized, structured way. The individual or business filing the bankruptcy has the option of proposing a plan of reorganization to the court outlining how they will pay their creditors. However, if circumstances change or there is a better solution, you can convert your Chapter 11 bankruptcy to a Chapter 7 bankruptcy. Chapter 7 bankruptcy is often called “liquidation” because it requires that you liquidate your non-exempt assets in order to pay off creditors. This may be attractive for individuals or businesses that cannot pay off their creditors through the reorganization plan as outlined in Chapter 11. Before you convert your Chapter 11 bankruptcy to a Chapter 7, you should speak with an attorney who specializes in bankruptcy law. They will review your individual circumstances and advise you on the best way to proceed.

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