(Bankr. E.D. Ky. Jan. 28, 2015)
The bankruptcy court grants the debtor’s motion to dismiss his chapter 13 bankruptcy, despite the trustee’s request to convert to chapter 7. The debtor failed to comply with the terms of the confirmed plan, and then filed a motion to dismiss. The trustee moved to convert to chapter 7, arguing that conversion was in the best interests of the creditors and the estate. The court held that § 1307(b), which gives a debtor the right to dismiss a chapter 13 case if it has not been previously converted, is mandatory. Section 1307(c) allows conversion to chapter 7 for cause, but this section is subject to the mandatory right of dismissal in §1307(b). Opinion below.
Author: Matt Lindblom