Thomas J. Tucker
Chapter 7
Judge Thomas J. Tucker
ORDER DENYING DEBTORS' MOTION
TO RECONVERT CASE TO CHAPTER 13
This case is before the Court on Debtors' "Motion To Re-Convert Chapter 7 Petition to a Petition Under Chapter 13," filed on June 17, 2011 (Docket # 61, the "Motion"). On July 7, 2011, Debtors filed a Certification of Non-Response, indicating that no objections to the Motion had been filed. But for the reasons explained below, the Court cannot grant the Motion.
Debtors filed a voluntary petition for relief under Chapter 13 on June 22, 2010. On May 17, 2011, Debtors filed a notice of conversion, to voluntarily convert the case from Chapter 13 to Chapter 7 (Docket # 53), and the Chapter 13 case was converted to Chapter 7. Debtors now seek an order re-converting the Chapter 7 case to Chapter 13.
The Court cannot allow the requested conversion by Debtors from Chapter 7 back to Chapter 13, because there was previously a conversion under 11 U.S.C. § 1307(a) of Debtors' Chapter 13 case to Chapter 7.
Section 1307(a) of the Bankruptcy Code provides: "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." 11 U.S.C. § 1307(a).
Section 706(a) of the Bankruptcy Code provides, in relevant part: "The debtor may convert a case under this chapter to a case under chapter 11, 12, or 13 of this title at any time, if the case has not been converted under section 1112, 1208, or 1307 of this title." 11 U.S.C. § 1307(a) (italics added). Debtors do not have a right to convert this case back to Chapter 13 because the exception in § 706(a) applies. As the Court has held previously in other cases, the Court does not have authority under any provision of the Bankruptcy Code to convert a case back to Chapter 13 on Debtors' request, under these circumstances. See Tr. of 2/24/05 bench opinion, In re Gaines, Case No. 04-63830 (Docket # 81 in that case, copy attached to Order filed at Docket # 56 in In re Honor, Case No. 07-40125) at 3-7 (explaining why conversion from Chapter 7 to Chapter 13 is not permitted under these circumstances); see also In re Banks, 252 B.R. 399 (Bankr. E.D. Mich. 2000).
The Court's August 30, 2007 Order in the Honor case, which has a transcript of the Court's bench opinion in the Gaines case attached to it, is available electronically through PACER and also from the Court's website (http://www.mieb.uscourts.gov/), in the "Court Opinions" section.
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Accordingly,
IT IS ORDERED that the Motion (Docket # 61) is denied.
Thomas J. Tucker
United States Bankruptcy Judge