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West Palm Beach Bankruptcy & Business Attorneys > > Bankruptcy Attorneys > What Is The Difference Between A Dismissal And A Conversion Of A Bankruptcy Case?

What Is The Difference Between A Dismissal And A Conversion Of A Bankruptcy Case?


If your business has filed for bankruptcy, or if you have recently filed for consumer bankruptcy as an individual, you may be wondering if it is possible to convert your bankruptcy case to another chapter. Or, in some cases, you might want to put an end to your bankruptcy case before a discharge occurs. In other circumstances, creditors might have a reason to seek a dismissal of a bankruptcy case, or a trustee might seek to have a bankruptcy case converted to another chapter. Sometimes, differently, a bankruptcy case will be closed. It is important to understand the distinctions among the terms “dismissal,” “conversion,” and “closure.” What are the differences among bankruptcy cases in which the case is dismissed, converted, or closed? Our West Palm Beach bankruptcy lawyers can provide you with more information.

What is the Conversion of a Bankruptcy Case? 

Conversion, or converting a bankruptcy case, means changing the case from one type of bankruptcy to a different type of bankruptcy — such as changing from Chapter 11 to Chapter 7. For a bankruptcy conversion to occur, the debtor must qualify for the type of bankruptcy they are seeking to convert to, and the court must approve the conversion. Conversions can occur in both individual or consumer cases, as well as in business cases. In some circumstances, conversation can be involuntary.

What is the Dismissal of a Bankruptcy Case? 

Whether you have filed for business bankruptcy or consumer bankruptcy under Chapter 7, Chapter 11, Chapter 12, or Chapter 13, there may be a reason for the court to dismiss the bankruptcy case. Under U.S. bankruptcy law, a dismissal refers to a situation in which the bankruptcy court ceases all proceedings in the case and no discharge is entered.

There are different reasons that a bankruptcy court can dismiss a bankruptcy case. In some circumstances, the debtor might seek a voluntary dismissal of the bankruptcy case. If the court finds that there are grounds for the voluntary dismissal, the bankruptcy court can dismiss the case. However, it is important to know that even a voluntary dismissal can impact your ability to have the protections of the automatic stay if you file for bankruptcy again in the near future. In other cases involving dismissals, the trustee or the creditor will ask the court to dismiss the case without the debtor’s consent in cases involving bad faith or fraud, for example. Bankruptcy cases can be dismissed without prejudice (allowing the debtor to file for bankruptcy again without limitations) or with prejudice (limiting subsequent bankruptcy filings).

What is the Closure of a Bankruptcy Case? 

The terminology of “closing” a bankruptcy case usually means that the bankruptcy case has reached its conclusion and the bankruptcy trustee has completed all of the required duties. For example, after a bankruptcy discharge, the bankruptcy case will be closed.

Contact a West Palm Beach Bankruptcy Lawyer 

Do you need assistance with your bankruptcy case? You should get in touch with one of the experienced West Palm Beach bankruptcy attorneys at Kelley Kaplan & Eller to learn more about our services.



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