Proposed Order Converting Chapter 11 Case to Chapter 12 or 13 Case

This legal template is a proposed order seeking the conversion of a Chapter 11 bankruptcy case to either a Chapter 12 or Chapter 13 case. The Chapter 11 bankruptcy process is typically used by businesses and individuals with substantial debts to reorganize and create a repayment plan. However, in certain circumstances, it may be more advantageous for the debtor to convert the case to either Chapter 12 or Chapter 13 bankruptcy.

Chapter 12 bankruptcy is designed specifically for family farmers and fishermen, providing them with a specialized debt adjustment process. This proposed order could be seeking the conversion of the existing Chapter 11 case to a Chapter 12 case to avail the debtor of the more tailored relief offered under this chapter.

On the other hand, Chapter 13 bankruptcy allows individuals with regular income to reorganize their debts and create a repayment plan without facing liquidation. This proposed order may seek the conversion of the Chapter 11 case to Chapter 13 to give the debtor the opportunity to benefit from the specific provisions and advantages offered under Chapter 13 bankruptcy.

The proposed order would typically outline the reasoning and grounds for the conversion, providing relevant legal arguments and citing applicable statutes and regulations. It may provide details about the debtor's current financial status, including their income, assets, and liabilities, to justify why the conversion to either Chapter 12 or 13 bankruptcy is more suitable for their circumstances. Additionally, it may outline the proposed repayment plan or reorganization strategy that the debtor intends to implement under the newly converted chapter.

Overall, this legal template serves as a means to initiate the process of converting a Chapter 11 bankruptcy case to either a Chapter 12 or Chapter 13 bankruptcy case, allowing debtors to avail themselves of more tailored bankruptcy relief based on their specific financial situation and needs.