Chapter 7 is about liquidating the filer’s assets rather than repayment. Previously filers could select whether they wanted Chapter 7 or 13. But now, if their income is high, they may not have a choice and must file under Chapter 13. To file Chapter 7, a debtor should establish that his disposable income is less than a certain low sum of money. Contact with an experienced Athens-Clarke County, Georgia Chapter 7 attorney to know if you qualify for Chapter 7. For Chapter 7, assets are sold and the proceeds are used to pay off the filer's creditors. Chapter 13 involves repayment. All income is used for repaying creditors. If available income is greater than that of the median in Georgia, the debtor’s allowable expenses will be determined by the IRS. This amount should come out of the filer's income during the six-month period prior to the filing. A chapter 11 debtor has a one-time absolute right to convert the chapter 11 case to a case under chapter 7 except if (1) the debtor is not a debtor in possession, (2) the case originally was filed as an involuntary proceeding under chapter 11, or (3) the case was converted to a proceeding under chapter 11 other than at the debtor's request. A debtor in a chapter 11 case does not have an absolute right to have the proceeding dismissed upon request. There are major exceptions to the conversion process in a chapter 11 case. Except when the debtor requests the conversion, section 1112(c) of the United States Bankruptcy Code does not permit the court to convert a case involving a farmer or charitable institution to a liquidation case under chapter 7.
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