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 Utah. This is known as a “conversion” and it allows a debtor whose primary income comes from their business to convert to a Chapter 7 debt liquidation proceeding. When filing for Chapter 11 bankruptcy, an individual is allowed to reorganize their debt repayment schedule and negotiate lower payments and interest rates with creditors. However, this may take a long time to complete. In some cases, it may be beneficial for a debtor to convert their Chapter 11 bankruptcy to a Chapter 7 bankruptcy because it can provide them with a more rapid debt relief. When filing for Chapter 7 bankruptcy, all of the debtor’s non-exempt assets are sold off and the proceeds are used to pay creditors. Any remaining debt is then discharged. This means that debtors can get rid of their debts faster than with Chapter 11 bankruptcy. In Utah, in order to convert from Chapter 11 to Chapter 7 bankruptcy, a debtor must first file a motion to convert their case. Additionally, the debtor must provide the court with a plan of repayment for all of their creditors that is approved by the court. Once the court approves the conversion, the debtor may proceed with a Chapter 7 bankruptcy. After the completion of the Chapter 7 bankruptcy, all of the debtor’s non-exempt assets will be sold, and the proceeds will be used to pay creditors. Any remaining debt will then be discharged.

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