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Regarding Converted Bankruptcy Cases

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  • 01-23-2012, 11:54 AM
    1gambit
    Regarding Converted Bankruptcy Cases
    My question involves bankruptcy in the state of: Florida, or any state as we receive notices from all states.

    I work in my place of employment's collection department, I asked our legal department and they were not completely sure of the correct answer to my question. My question is regarding converted cases. When a case is converted from Chapter 13 to Chapter 7, 11 to 7, 7 to 13, etc., what date to we use as the date of filing? Do we use the initial date of filing? For example, if a Chapter 13 is converted to a Chapter 7, do we use the date of filing on the Chapter 13 or do we use the date on the Notice of Conversion? I want to ensure that we are properly removing the pre-petition charges from the customer's account.
  • 01-23-2012, 06:58 PM
    despritfreya
    Re: Regarding Converted Bankruptcy Cases
    The filing date in a converted case does not change. It is always the original date of the Petition. HOWEVER, in cases converted TO Chapter 7 the Debtor has the right to add any debt that has been incurred from the date of the Petition to the date of the conversion.

    In converting cases from 7 to either 11 or 13, the debtor cannot add debt.
    In converting cases from 11 to 13 or 13 to 11, the debtor cannot add debt.

    Adding debt only works if a case is converted TO a Chapter 7.

    Hope that answers your question.

    Des.
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