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11 U.S.C. § 1112 — Conversion or dismissal
Federal law — U.S. Code and appendices · legal_authorities
**(a)** The debtor may convert a case under this chapter to a case under chapter 7 of this title unless—
(1) the debtor is not a debtor in possession;
(2) the case originally was commenced as an involuntary case under this chapter; or
(3) the case was converted to a case under this chapter other than on the debtor’s request.
**(b)**
(1) Except as provided in paragraph (2) and subsection (c), on request of a party in interest, and after notice and a hearing, the court shall convert a case under this chapter to a case under chapter 7 or dismiss a case under this chapter, whichever is in the best interests of creditors and the estate, for cause unless the court determines that the appointment under section 1104(a) of a trustee or an examiner is in the best interests of creditors and the estate.
(2) The court may not convert a case under this chapter to a case under chapter 7 or dismiss a case under this chapter if the court finds and specifically identifies unusual circumstances establishing that converting or dismissing the case is not in the best interests of creditors and the estate, and the debtor or any other party in interest establishes that—
(A) there is a reasonable likelihood that a plan will be confirmed within the timeframes established in sections 1121(e) and 1129(e) of this title, or if such sections do not apply, within a reasonable period of time; and
(B) the grounds for converting or dismissing the case include an act or omission of the debtor other than under paragraph (4)(A)—
(i) for which there exists a reasonable justification for the act or omission; and
(ii) that will be cured within a reasonable period of time fixed by the court.
(3) The court shall commence the hearing on a motion under this subsection not later than 30 days
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Source file: Laws/federal/codes/united-states-code/title-11/section-1112-conversion-or-dismissal--4795eef029.md
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Source location: Title 11, Chapter 11, § 1112; chapter-011-reorganization.md
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**(a)** The debtor may convert a case under this chapter to a case under chapter 7 of this title unless—
(1) the debtor is not a debtor in possession;
(2) the case originally was commenced as an involuntary case under this chapter; or
(3) the case was converted to a case under this chapter other than on the debtor’s request.
**(b)**
(1) Except as provided in paragraph (2) and subsection (c), on request of a party in interest, and after notice and a hearing, the court shall convert a case under this chapter to a case under chapter 7 or dismiss a case under this chapter, whichever is in the best interests of creditors and the estate, for cause unless the court determines that the appointment under section 1104(a) of a trustee or an examiner is in the best interests of creditors and the estate.
(2) The court may not convert a case under this chapter to a case under chapter 7 or dismiss a case under this chapter if the court finds and specifically identifies unusual circumstances establishing that converting or dismissing the case is not in the best interests of creditors and the estate, and the debtor or any other party in interest establishes that—
(A) there is a reasonable likelihood that a plan will be confirmed within the timeframes established in sections 1121(e) and 1129(e) of this title, or if such sections do not apply, within a reasonable period of time; and
(B) the grounds for converting or dismissing the case include an act or omission of the debtor other than under paragraph (4)(A)—
(i) for which there exists a reasonable justification for the act or omission; and
(ii) that will be cured within a reasonable period of time fixed by the court.
(3) The court shall commence the hearing on a motion under this subsection not later than 30 days after filing of the motion, and shall decide the motion not later than 15 days after commencement of such hearing, unless the movant expressly consents to a continuance for a specific period of time or compelling circumstances prevent the court from meeting the time limits established by this paragraph.
(4) For purposes of this subsection, the term “cause” includes—
(A) substantial or continuing loss to or diminution of the estate and the absence of a reasonable likelihood of rehabilitation;
(B) gross mismanagement of the estate;
(C) failure to maintain appropriate insurance that poses a risk to the estate or to the public;
(D) unauthorized use of cash collateral substantially harmful to 1 or more creditors;
(E) failure to comply with an order of the court;
(F) unexcused failure to satisfy timely any filing or reporting requirement established by this title or by any rule applicable to a case under this chapter;
(G) failure to attend the meeting of creditors convened under section 341(a) or an examination ordered under rule 2004 of the Federal Rules of Bankruptcy Procedure without good cause shown by the debtor;
(H) failure timely to provide information or attend meetings reasonably requested by the United States trustee (or the bankruptcy administrator, if any);
(I) failure timely to pay taxes owed after the date of the order for relief or to file tax returns due after the date of the order for relief;
(J) failure to file a disclosure statement, or to file or confirm a plan, within the time fixed by this title or by order of the court;
(K) failure to pay any fees or charges required under chapter 123 of title 28;
(L) revocation of an order of confirmation under section 1144;
(M) inability to effectuate substantial consummation of a confirmed plan;
(N) material default by the debtor with respect to a confirmed plan;
(O) termination of a confirmed plan by reason of the occurrence of a condition specified in the plan; and
(P) failure of the debtor to pay any domestic support obligation that first becomes payable after the date of the filing of the petition.
**(c)** The court may not convert a case under this chapter to a case under chapter 7 of this title if the debtor is a farmer or a corporation that is not a moneyed, business, or commercial corporation, unless the debtor requests such conversion.
**(d)** The court may convert a case under this chapter to a case under chapter 12 or 13 of this title only if—
(1) the debtor requests such conversion;
(2) the debtor has not been discharged under [section 1141(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section1141/d&num=0&edition=prelim); and
(3) if the debtor requests conversion to chapter 12 of this title, such conversion is equitable.
**(e)** Except as provided in subsections (c) and (f), the court, on request of the United States trustee, may convert a case under this chapter to a case under chapter 7 of this title or may dismiss a case under this chapter, whichever is in the best interest of creditors and the estate if the debtor in a voluntary case fails to file, within fifteen days after the filing of the petition commencing such case or such additional time as the court may allow, the information required by paragraph (1) of section 521(a), including a list containing the names and addresses of the holders of the twenty largest unsecured claims (or of all unsecured claims if there are fewer than twenty unsecured claims), and the approximate dollar amounts of each of such claims.
**(f)** Notwithstanding any other provision of this section, a case may not be converted to a case under another chapter of this title unless the debtor may be a debtor under such chapter.
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** The Attorney General shall appoint one United States trustee for each of the following regions composed of Federal judicial districts (without regard to section 451):
(1) The judicial districts established for the States of Maine, Massachusetts, New Hampshire, and Rhode Island.
(2) The judicial districts established for the States of Connecticut, New York, and Vermont.
(3) The judicial districts established for the States of Delaware, New Jersey, and Pennsylvania.
(4) The judicial districts established for the States of Maryland, North Carolina, South Carolina, Virginia, and West Virginia and for the District of Columbia.
(5) The judicial districts established for the States of Louisiana and Mississippi.
(6) The Northern District of Texas and the Eastern District of Texas.
(7) The Southern District of Texas and the Western District of Texas.
(8) The judicial districts established for the States of Kentucky and Tennessee.
(9) The judicial districts established for the States of Michigan and Ohio.
(10) The Central District of Illinois and the Southern District of Illinois; and the judicial districts established for the State of Indiana.
(11) The Northern District of Illinois; and the judicial districts established for the State of Wisconsin.
(12) The judicial districts established for the States of Minnesota, Iowa, North Dakota, and South Dakota.
(13) The judicial districts established for the States of Arkansas, Nebraska, and Missouri.
(14) The District of Arizona.
(15) The Southern District of California; and the judicial districts established for the State of Hawaii, and for Guam and the Commonwealth of the Northern Mariana Islands.
(16) The Central District of California.
(17) The Eastern District of California and the Northern District of Cal
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Federal law — U.S. Code and appendices · legal_authorities
In this title the following definitions shall apply:
(1) The term “accountant” means accountant authorized under applicable law to practice public accounting, and includes professional accounting association, corporation, or partnership, if so authorized.
(2) The term “affiliate” means—
(A) entity that directly or indirectly owns, controls, or holds with power to vote, 20 percent or more of the outstanding voting securities of the debtor, other than an entity that holds such securities—
(i) in a fiduciary or agency capacity without sole discretionary power to vote such securities; or
(ii) solely to secure a debt, if such entity has not in fact exercised such power to vote;
(B) corporation 20 percent or more of whose outstanding voting securities are directly or indirectly owned, controlled, or held with power to vote, by the debtor, or by an entity that directly or indirectly owns, controls, or holds with power to vote, 20 percent or more of the outstanding voting securities of the debtor, other than an entity that holds such securities—
(i) in a fiduciary or agency capacity without sole discretionary power to vote such securities; or
(ii) solely to secure a debt, if such entity has not in fact exercised such power to vote;
(C) person whose business is operated under a lease or operating agreement by a debtor, or person substantially all of whose property is operated under an operating agreement with the debtor; or
(D) entity that operates the business or substantially all of the property of the debtor under a lease or operating agreement.
(3) The term “assisted person” means any person whose debts consist primarily of consumer debts and the value of whose nonexempt property is less than $150,000.11 See Adjustment of Dollar Amounts not
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** Each United States trustee, within the region for which such United States trustee is appointed, shall—
(1) establish, maintain, and supervise a panel of private trustees that are eligible and available to serve as trustees in cases under chapter 7 of title 11;
(2) serve as and perform the duties of a trustee in a case under title 11 when required under title 11 to serve as trustee in such a case;
(3) supervise the administration of cases and trustees in cases under chapter 7, 11 (including subchapter V of chapter 11), 12, 13, or 15 of title 11 by, whenever the United States trustee considers it to be appropriate—
(A)
(i) reviewing, in accordance with procedural guidelines adopted by the Executive Office of the United States Trustee (which guidelines shall be applied uniformly by the United States trustee except when circumstances warrant different treatment), applications filed for compensation and reimbursement under [section 330 of title 11](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section330&num=0&edition=prelim); and
(ii) filing with the court comments with respect to such application and, if the United States Trustee considers it to be appropriate, objections to such application;
(B) monitoring plans and disclosure statements filed in cases under chapter 11 of title 11 and filing with the court, in connection with hearings under sections 1125 and 1128 of such title, comments with respect to such plans and disclosure statements;
(C) monitoring plans filed under chapters 12 and 13 of title 11 and filing with the court, in connection with hearings under sections 1224, 1229, 1324, and 1329 of such title, comments with respect to such plans;
(D) taking such action as the United States trustee deems to be appr
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Federal law — U.S. Code and appendices · legal_authorities
Page 249
TITLE 11—BANKRUPTCY
§ 1112
‘‘SEC. 2. TREATMENT OF AIRCRAFT EQUIPMENT
SETTLEMENT LEASES WITH THE PENSION
BENEFIT GUARANTY CORPORATION.
‘‘In the case of any settlement of liability under title
IV of the Employee Retirement Income Security Act of
1974 [29 U.S.C. 1301 et seq.] entered into by the Pension
Benefit Guaranty Corporation and one or more other
parties, if—
‘‘(1) such settlement was entered into before, on, or
after the date of the enactment of this Act [Mar. 17,
1993],
‘‘(2) at least one party to such settlement was a
debtor under title 11 of the United States Code, and
‘‘(3) an agreement that is entered into as part of
such settlement provides that such agreement is to
be treated as a lease,
then such agreement shall be treated as a lease for pur-
poses of section 1110 of such title 11.’’
§ 1111. Claims and interests
(a) A proof of claim or interest is deemed filed
under section 501 of this title for any claim or
interest that appears in the schedules filed
under section 521(a)(1) or 1106(a)(2) of this title,
except a claim or interest that is scheduled as
disputed, contingent, or unliquidated.
(b)(1)(A) A claim secured by a lien on property
of the estate shall be allowed or disallowed
under section 502 of this title the same as if the
holder of such claim had recourse against the
debtor on account of such claim, whether or not
such holder has such recourse, unless—
(i) the class of which such claim is a part
elects, by at least two-thirds in amount and
more than half in number of allowed claims of
such class, application of paragraph (2) of this
subsection; or
(ii) such holder does not have such recourse
and such property is sold under section 363 of
this title or is to be sold under the plan.
(B) A class of claims may
Source: Supplied 2024 U.S. Code historical extraction · 11 U.S.C. § 1112
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