Title 11 — Bankruptcy
Chapter 7 — Liquidation
§ 706. Conversion
Statutory text
The debtor may convert a case under this chapter to a case under chapter 11, 12, or 13 of this title at any time, if the case has not been converted under section 1112, 1208, or 1307 of this title. Any waiver of the right to convert a case under this subsection is unenforceable.
On request of a party in interest and after notice and a hearing, the court may convert a case under this chapter to a case under chapter 11 of this title at any time.
The court may not convert a case under this chapter to a case under chapter 12 or 13 of this title unless the debtor requests or consents to such conversion.
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.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Pub. L. 95–598 · 92 Stat. 2549
Enacted · 11 U.S.C. § 706
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2606
Source evidence
Code source credit
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2606Bankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
Pub. L. 99–554 § 257(q)(1) · 100 Stat. 3088
Inserted · 11 U.S.C. § 706(a)
Pub. L. 99–554, § 257(q)(1), inserted references to chapter 12 and section 1208 of this title
Source evidence
Code amendment note
Subsec. (a). Pub. L. 99–554, § 257(q)(1), inserted references to chapter 12 and section 1208 of this title.Enacted provision · exact public law section
(1) in subsection (a)— (A) by striking out “or 1307” and inserting in lieu thereof “, 1307, or 1208” and (B) by striking out “or 13” and inserting in lieu thereof “, 12, or 13”, andBankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
Pub. L. 99–554 § 257(q)(2) · 100 Stat. 3088
Inserted · 11 U.S.C. § 706(c)
Pub. L. 99–554, § 257(q)(2), inserted reference to chapter 12
Source evidence
Code amendment note
Subsec. (c). Pub. L. 99–554, § 257(q)(2), inserted reference to chapter 12.Enacted provision · exact public law section
(2) in subsection (c) by inserting “12 or” before “13”.Bankruptcy Reform Act of 1994
Pub. L. 103–394 title V § 501(d)(22) · 108 Stat. 4106
Substituted · 11 U.S.C. § 706(a)
Pub. L. 103–394 substituted “1208, or 1307” for “1307, or 1208”
Source evidence
Code amendment note
Subsec. (a). Pub. L. 103–394 substituted “1208, or 1307” for “1307, or 1208”.Enacted provision · exact public law section
(22) in section 706(a) by striking “1307, or 1208” and inserting “1208, or 1307”,Pub. L. 109–8 title I § 101 · 119 Stat. 23
Inserted · 11 U.S.C. § 706(c)
Pub. L. 109–8 inserted “or consents to” after “requests”
Source evidence
Code amendment note
Subsec. (c). Pub. L. 109–8 inserted “or consents to” after “requests”.Enacted provision · exact public law section
SEC. 101. CONVERSION. Section 706(c) of title 11, United States Code, is amended by inserting “or consents to” after “requests”.Effective date note
Amendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.
4 of 5 references resolved to an enrolled provision · 1 partial
Notes
Historical and Revision Notes
legislative statements
Section 706(a) of the House amendment adopts a provision contained in the Senate amendment indicating that a waiver of the right to convert a case under section 706(a) is unenforceable. The explicit reference in title 11 forbidding the waiver of certain rights is not intended to imply that other rights, such as the right to file a voluntary bankruptcy case under section 301, may be waived.
Section 706 of the House amendment adopts a similar provision contained in H.R. 8200 as passed by the House. Competing proposals contained in section 706(c) and section 706(d) of the Senate amendment are rejected.
senate report no. 95–989
Subsection (a) of this section gives the debtor the one-time absolute right of conversion of a liquidation case to a reorganization or individual repayment plan case. If the case has already once been converted from chapter 11 or 13 to chapter 7, then the debtor does not have that right. The policy of the provision is that the debtor should always be given the opportunity to repay his debts, and a waiver of the right to convert a case is unenforceable.
Subsection (b) permits the court, on request of a party in interest and after notice and a hearing, to convert the case to chapter 11 at any time. The decision whether to convert is left in the sound discretion of the court, based on what will most inure to the benefit of all parties in interest.
Subsection (c) is part of the prohibition against involuntary chapter 13 cases, and prohibits the court from converting a case to chapter 13 without the debtor’s consent.
Subsection (d) reinforces section 109 by prohibiting conversion to a chapter unless the debtor is eligible to be a debtor under that chapter.
Editorial Notes
Amendments1986–2005 · 3 rounds
2005
Subsec. (c). Pub. L. 109–8 inserted “or consents to” after “requests”.
1994
Subsec. (a). Pub. L. 103–394 substituted “1208, or 1307” for “1307, or 1208”.
1986
Subsec. (a). Pub. L. 99–554, § 257(q)(1), inserted references to chapter 12 and section 1208 of this title.
Subsec. (c). Pub. L. 99–554, § 257(q)(2), inserted reference to chapter 12.
Statutory Notes and Related Subsidiaries
Effective Date of 2005 Amendment
Amendment by Pub. L. 109–8 effective 180 days after , and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.
Effective Date of 1994 Amendment
Amendment by Pub. L. 103–394 effective , and not applicable with respect to cases commenced under this title before , see section 702 of Pub. L. 103–394, set out as a note under section 101 of this title.
Effective Date of 1986 Amendment
Amendment by Pub. L. 99–554 effective 30 days after , but not applicable to cases commenced under this title before that date, see section 302(a), (c)(1) of Pub. L. 99–554, set out as a note under section 581 of Title 28, Judiciary and Judicial Procedure.
Credits
1978–2005 · 4 acts
- 1978Pub. L. 95–598, , 92 Stat. 2606
- 1986Pub. L. 99–554, title II, § 257(q), , 100 Stat. 3115
- 1994Pub. L. 103–394, title V, § 501(d)(22), , 108 Stat. 4146
- 2005Pub. L. 109–8, title I, § 101, , 119 Stat. 27.
Show as published
(Pub. L. 95–598, , 92 Stat. 2606; Pub. L. 99–554, title II, § 257(q), , 100 Stat. 3115; Pub. L. 103–394, title V, § 501(d)(22), , 108 Stat. 4146; Pub. L. 109–8, title I, § 101, , 119 Stat. 27.)