Chapter 7 deals with liquidating the filer’s assets rather than repayment. Earlier filers could choose whether they wanted Chapter 7 or 13. But now, if their income is high, they do not have a choice and should file under Chapter 13. In order to file Chapter 7, the filer must prove that his disposable income is less than a certain low sum of money. Consult with an experienced Harris County, GA Chapter 7 attorney to know if you qualify for Chapter 7. For Chapter 7, assets are liquidated and the proceeds are used to repay the debtor’s debts. Chapter 13 involves repayment. All income is used for paying off creditors. When available income is more than that of the median in Georgia, the debtor’s allowable expenses will be decided by the IRS. This amount should come out of the filer's income during the six-month period before the filing. A chapter 11 debtor has a one-time absolute right to convert the chapter 11 proceeding to a case under chapter 7 except if (1) the debtor is not a debtor in possession, (2) the case initially was started as an involuntary proceeding under chapter 11, or (3) the proceeding was converted to a proceeding under chapter 11 but not at the debtor's request. A debtor in a chapter 11 proceeding does not have an absolute right to have the case dismissed upon request. There are major exceptions to the conversion process in a chapter 11 proceeding. Unless the debtor requests the conversion, section 1112(c) of the United States Bankruptcy Code does not allow the court to convert a case involving a farmer or charitable institution to a liquidation case under chapter 7.
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