Chapter 7 is about selling the debtor’s assets rather than repayment. Earlier debtors could pick whether they wanted Chapter 7 or 13. However now, if their income is high, they do not have a choice and will have to file under Chapter 13. To file Chapter 7, a debtor would have to establish that his disposable income is less than a certain low sum of money. Contact with an experienced Oconee County, GA 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 paying off creditors. If available income is more than that of the median in the State of Georgia, the debtor’s allowable expenses will be determined by the IRS. The amount must come out of the filer's income during the six-month period prior to the filing. The 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 started as an involuntary case under chapter 11, or (3) the case was converted to a case under chapter 11 other than at the debtor's request. The debtor in a chapter 11 case does not have an absolute right to have the case dismissed upon request. There are important exceptions to the conversion process in a chapter 11 case. Unless the debtor requests the conversion, section 1112(c) of the Federal Bankruptcy Code does not allow the court to convert a proceeding involving a farmer or charitable institution to a liquidation case under chapter 7.
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