Debtor's Motion: Convert Chapter 11 Case to a Chapter 7 Case

This legal template is a debtor's motion seeking the conversion of their existing Chapter 11 bankruptcy case to a Chapter 7 case under United States law. Chapter 11 and Chapter 7 are two different types of bankruptcy options available to individuals and businesses in financial distress.

Chapter 11 bankruptcy allows debtors, typically businesses, to reorganize their debts and financial affairs while remaining operational. This ensures they can continue to operate and potentially repay creditors over an extended period of time. However, circumstances may arise where the debtor finds it unfeasible or impractical to continue operating under Chapter 11.

In such cases, the debtor may decide to file a motion to convert their Chapter 11 case into a Chapter 7 case. Chapter 7 bankruptcy involves the liquidation of the debtor's assets to repay creditors, after which the debtor is typically discharged from any further liability for the discharged debts.

This legal template would contain all the necessary information, arguments, and supporting evidence that the debtor's legal counsel deems required to request the court's permission for the conversion. It would outline reasons for the motion, such as the inability to reorganize effectively or achieve a viable repayment plan, severe financial distress, inefficient use of resources, or other substantial justifications specific to the debtor's situation.

The template may also address any opposition that may arise from creditors, outlining the factors that favor conversion and countering any arguments against it. It would include a proposed order for the court to grant the debtor's motion and convert the case to Chapter 7 bankruptcy, as well as any other relevant documents necessary to support the motion.

Overall, this legal template provides a structured framework for debtors seeking to convert their Chapter 11 case into a Chapter 7 case, highlighting the specific reasons, justifications, and supporting evidence necessary for successfully completing this transition under USA law.