In order to accord the debtor complete relief, the Bankruptcy Code allows the debtor to convert a chapter 7 case to a case under chapter 11, 12, or 13 (6) as long as the debtor is eligible to be a debtor under the new chapter. However, a condition of the debtor's voluntary conversion is that the case has not previously been converted to chapter 7 from another chapter. Thus, the debtor will not be permitted to convert the case repeatedly from one chapter to another.
In Texas, as in all states, the federal Bankruptcy Code governs the process of bankruptcy, including the conversion of cases between different chapters. A debtor who has filed for bankruptcy under Chapter 7 has the right to convert their case to Chapter 11, 12, or 13, provided they meet the eligibility requirements for the new chapter. This provision is designed to give debtors the flexibility to choose the bankruptcy relief that best suits their situation. However, there is a restriction to prevent abuse of the system: if a bankruptcy case has already been converted to Chapter 7 from another chapter, the debtor cannot convert it again. This rule ensures that debtors do not repeatedly switch between chapters to delay proceedings or manipulate the system. It's important for debtors to consider their options carefully and consult with an attorney to determine the most appropriate form of bankruptcy for their circumstances.
