Los Angeles Bankruptcy Attorney

TITLE 11 - BANKRUPTCY
CHAPTER 13 - ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR
                  INCOME                          
    SUBCHAPTER I - OFFICERS, ADMINISTRATION, AND THE ESTATE

-HEAD-
    Sec. 1307. Conversion or dismissal

-STATUTE-
      (a) The debtor may convert a case under this chapter to a case
    under chapter 7 of this title at any time. Any waiver of the right
    to convert under this subsection is unenforceable.
      (b) On request of the debtor at any time, if the case has not
    been converted under section 706, 1112, or 1208 of this title, the
    court shall dismiss a case under this chapter. Any waiver of the
    right to dismiss under this subsection is unenforceable.
      (c) Except as provided in subsection (e) (!1) of this section, on
    request of a party in interest or the United States trustee and
    after notice and a hearing, the court may convert a case under this
    chapter to a case under chapter 7 of this title, or may dismiss a
    case under this chapter, whichever is in the best interests of
    creditors and the estate, for cause, including - 

        (1) unreasonable delay by the debtor that is prejudicial to
      creditors;
        (2) nonpayment of any fees and charges required under chapter
      123 of title 28;
        (3) failure to file a plan timely under section 1321 of this
      title;
        (4) failure to commence making timely payments under section
      1326 of this title;
        (5) denial of confirmation of a plan under section 1325 of this
      title and denial of a request made for additional time for filing
      another plan or a modification of a plan;
        (6) material default by the debtor with respect to a term of a
      confirmed plan;
        (7) revocation of the order of confirmation under section 1330
      of this title, and denial of confirmation of a modified plan
      under section 1329 of this title;
        (8) termination of a confirmed plan by reason of the occurrence
      of a condition specified in the plan other than completion of
      payments under the plan;
        (9) only on request of the United States trustee, failure of
      the debtor to file, within fifteen days, or such additional time
      as the court may allow, after the filing of the petition
      commencing such case, the information required by paragraph (1)
      of section 521;
        (10) only on request of the United States trustee, failure to
      timely file the information required by paragraph (2) of section
      521; or
        (11) failure of the debtor to pay any domestic support
      obligation that first becomes payable after the date of the
      filing of the petition.

      (d) Except as provided in subsection (e) of this section, at any
    time before the confirmation of a plan under section 1325 of this
    title, on request of a party in interest or the United States
    trustee and after notice and a hearing, the court may convert a
    case under this chapter to a case under chapter 11 or 12 of this
    title.
      (e) Upon the failure of the debtor to file a tax return under
    section 1308, on request of a party in interest or the United
    States trustee and after notice and a hearing, the court shall
    dismiss a case or convert a case under this chapter to a case under
    chapter 7 of this title, whichever is in the best interest of the
    creditors and the estate.
      (f) The court may not convert a case under this chapter to a case
    under chapter 7, 11, or 12 of this title if the debtor is a farmer,
    unless the debtor requests such conversion.
      (g) 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.

-SOURCE-
    (Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2647; Pub. L. 98-353, title
    III, Secs. 315, 527, July 10, 1984, 98 Stat. 356, 389; Pub. L. 99-
    554, title II, Secs. 229, 257(v), Oct. 27, 1986, 100 Stat. 3103,
    3116; Pub. L. 109-8, title II, Sec. 213(7), title VII, Sec. 716(c),
    Apr. 20, 2005, 119 Stat. 53, 130.)


                       HISTORICAL AND REVISION NOTES                   

                          LEGISLATIVE STATEMENTS                      
      Section 1307(a) is derived from the Senate amendment in
    preference to a comparable provision contained in the House bill.

                         SENATE REPORT NO. 95-989                     
      Subsections (a) and (b) confirm, without qualification, the
    rights of a chapter 13 debtor to convert the case to a liquidating
    bankruptcy case under chapter 7 of title 11, at any time, or to
    have the chapter 13 case dismissed. Waiver of any such right is
    unenforceable. Subsection (c) specifies various conditions for the
    exercise of the power of the court to convert a chapter 13 case to
    one under chapter 7 or to dismiss the case. Subsection (d) deals
    with the conversion of a chapter 13 case to one under chapter 11.
    Subsection (e) prohibits conversion of the chapter 13 case filed by
    a farmer to chapter 7 or 11 except at the request of the debtor. No
    case is to be converted from chapter 13 to any other chapter,
    unless the debtor is an eligible debtor under the new chapter.

                          HOUSE REPORT NO. 95-595                      
      Subsection (f) reinforces section 109 by prohibiting conversion
    to a chapter under which the debtor is not eligible to proceed.

-REFTEXT-
                            REFERENCES IN TEXT                        
      Subsection (e) of this section, referred to in subsec. (c), was
    redesignated as subsec. (d) of this section, and a new subsec. (e)
    was added, by Pub. L. 109-8, title VII, Sec. 716(c), Apr. 20, 2005,
    119 Stat. 130.


-MISC2-
                                AMENDMENTS                            
      2005 - Subsec. (c)(11). Pub. L. 109-8, Sec. 213(7), added par.
    (11).
      Subsecs. (e) to (g). Pub. L. 109-8, Sec. 716(c), added subsec.
    (e) and redesignated former subsecs. (e) and (f) as (f) and (g),
    respectively.
      1986 - Subsec. (b). Pub. L. 99-554, Sec. 257(v)(1), inserted
    reference to section 1208 of this title.
      Subsec. (c). Pub. L. 99-554, Sec. 229(1)(A), inserted "or the
    United States trustee" after "party in interest" in provisions
    preceding par. (1).
      Subsec. (c)(9), (10). Pub. L. 99-554, Sec. 229(1)(B)-(D), added
    pars. (9) and (10).
      Subsec. (d). Pub. L. 99-554, Sec. 257(v)(2), inserted reference
    to chapter 12.
      Pub. L. 99-554, Sec. 229(2), inserted "or the United States
    trustee" after "party in interest".
      Subsec. (e). Pub. L. 99-554, Sec. 257(v)(3), inserted reference
    to chapter 12.
      1984 - Subsec. (b). Pub. L. 98-353, Sec. 527(a), inserted a comma
    after "time".
      Subsec. (c)(4). Pub. L. 98-353, Sec. 315(2), added par. (4).
    Former par. (4) redesignated (5).
      Subsec. (c)(5). Pub. L. 98-353, Secs. 315(1), 527(b)(1),
    redesignated former par. (4) as (5) and inserted "a request made
    for" before "additional". Former par. (5) redesignated (6).
      Subsec. (c)(6). Pub. L. 98-353, Sec. 315(1), redesignated former
    par. (5) as (6). Former par. (6) redesignated (7).
      Subsec. (c)(7). Pub. L. 98-353, Secs. 315(1), 527(b)(2),
    redesignated former par. (6) as (7) and substituted "or" for "and".
    Former par. (7) redesignated (8).
      Subsec. (c)(8). Pub. L. 98-353, Secs. 315(1), 527(b)(3),
    redesignated former par. (7) as (8) and inserted "other than
    completion of payments under the plan" after "in the plan".

                     EFFECTIVE DATE OF 2005 AMENDMENT                 
      Amendment by Pub. L. 109-8 effective 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 of Pub. L. 109-8, set out as a note under section 101
    of this title.

                     EFFECTIVE DATE OF 1986 AMENDMENT                 
      Effective date and applicability of amendment by section 229 of
    Pub. L. 99-554 dependent upon the judicial district involved, see
    section 302(d), (e) of Pub. L. 99-554, set out as a note under
    section 581 of Title 28, Judiciary and Judicial Procedure.
      Amendment by section 257 of Pub. L. 99-554 effective 30 days
    after Oct. 27, 1986, but not applicable to cases commenced under
    this title before that date, see section 302(a), (c)(1) of Pub. L.
    99-554.

                     EFFECTIVE DATE OF 1984 AMENDMENT                 
      Amendment by Pub. L. 98-353 effective with respect to cases filed
    90 days after July 10, 1984, see section 552(a) of Pub. L. 98-353,
    set out as a note under section 101 of this title.

-FOOTNOTE-
    (!1) See References in Text note below.