Chapter 7 is about selling the debtor’s assets rather than repayment. Earlier filers could pick whether they wanted Chapter 7 or 13. However now, when their income is high, they do not have a choice and should file under Chapter 13. In order to file Chapter 7, a filer would have to demonstrate that his disposable income falls below a certain low sum of money. Contact with an experienced Richmond County, Georgia Chapter 7 attorney to know if you qualify for Chapter 7. Under Chapter 7, assets are liquidated and the proceeds are used to repay the filer’s creditors. Chapter 13 is about repayment. All income goes into repaying debts. If available income is greater than that of the median in the State of Georgia, the debtor’s permitted expenses will be decided by the IRS. This amount should come out of the filer’s income during the six-month period prior to the filing. A chapter 11 debtor has a one-time absolute right to convert the chapter 11 proceeding to a case under chapter 7 unless (1) the debtor is not a debtor in possession, (2) the proceeding initially was started as an involuntary proceeding under chapter 11, or (3) the proceeding was converted to a case under chapter 11 other than at the debtor’s request. A debtor in a chapter 11 proceeding 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 proceeding. Unless the debtor requests the conversion, section 1112(c) of the Federal Bankruptcy Code does not permit the court to convert a proceeding involving a farmer or charitable institution to a liquidation case under chapter 7.
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