CAN YOU CONVERT FROM ONE CHAPTER TO ANOTHER IN BANKRUPTCY?

When a bankruptcy is filed, you must choose under what chapter you are filing.  If the filing individual's or business' circumstances change, many times debtors will want to change the chapter under which they filed.  Federal law allows debtor's one conversion to another chapter as long as it does not involve fraud or bad faith intent.  However, if you are converting to another chapter, you must still qualify for the other chapter.  Also, some bankruptcies will be converted by the trustee or the court under rights provided to them by law.  If you have filed a bankruptcy petition and you believe you would like to convert to another chapter, please consult your bankruptcy attorney for a full list of options.

http://www.westmontattorneys.com/Bankruptcy/

CAN A BUSINESS OR COMPANY FILE CHAPTER 7 BANKRUPTCY?

Yes, a business can file a chapter 7 bankruptcy, however, it will not achieve the same result as an individual or joint debtor filing a chapter 7.  Most people seeking debt relief will file a chapter 7 bankruptcy, and if the debtor has no assets above the exemption limit, all allowable debts would be discharged, meaning the debtor would no longer have any liability to those credtiors.  However, if a business files a chapter 7 bankruptcy, it will have to cease operating, and any assets will be distributed to creditors in the correct order.  It is not possible for a company to obtain a chapter 7 discharge and continue operating as a business going forward.

http://www.westmontattorneys.com/Bankruptcy/