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ABI Poll Dishonest Chapter 7 Debtors Do Not Have an Absolute Right to Convert Their Bankruptcy Cases to Chapter 13

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Contact: John Hartgen

            

703-739-0800

            

jhartgen@abiworld.org


size='3'>ABI POLL: DISHONEST CHAPTER

7 DEBTORS DO NOT HAVE AN ABSOLUTE RIGHT TO CONVERT

THEIR BANKRUPTCY CASES TO CHAPTER 13

May 29, 2007, Alexandria,
Va. —A majority of respondents to
w:st='on'>ABI’s latest online poll agreed (72
percent) that chapter 7 debtors do not have an absolute right under
§706(a) to convert to chapter 13 bankruptcy proceedings if there is

pre-petition bad faith conduct. Fifty-three percent “agreed
strongly,” while 19 percent “somewhat agreed” that
chapter 7 debtors do not have an absolute right to convert to chapter 13

if they acted in bad faith during the pre-petition process.

Eighteen percent of
respondents, however, thought that chapter 7 debtors did have an
absolute right under §706(a) to convert to a chapter 13 proceeding,

even if there was pre-petition bad faith conduct.  Seventeen
percent “strongly disagreed” that chapter 7 debtors do not
have an absolute right to convert to chapter 13 if they acted in bad
faith during the pre-petition process, while 1 percent “disagreed
somewhat.” Eight percent of the respondents did not know or had no

opinion on the issue.

The poll is based on
face='Times New Roman' color='black' size='3'>Marrama v. Citizens Bank
of Massachusetts, No. 05-996, 549

w:st='on'>U.S. ___ (2007), in
which the Supreme Court held in a 5-4 decision that
a misbehaving chapter 7 debtor does not have an absolute right to
convert his case to chapter 13. The Supreme
Court stated that a debtor whose case could be converted or dismissed
for cause under 11 U.S.C. Sec. 1307(c) had forfeited the right to
proceed under chapter 13 and was not a eligible to convert to chapter
13.


size='3'>ABI members and members of the public
were welcome to submit their response to the statement:
“Chapter 7 debtors do not have an absolute right under
§706(a) to convert to chapter 13 if there is pre-petition bad faith

conduct. (Marrama v. Citizens Bank and In re Euro-American
Lodging).” The latest
w:st='on'>ABI Quick Poll was open to the public for
voting from May 10-24.


size='3'>ABI’s weekly Quick Poll is posted

on ABI’s home page,
title='http://www.abiworld.org/'
href='http://www.abiworld.org/'>www.abiworld.org.
w:st='on'>ABI members and the public are invited to
respond to a question on a timely bankruptcy or insolvency issue. Visit

href='http://www.abiworld.net/quickpoll/'>
color='#0000ff'>http://www.abiworld.net/quickpoll/ to access
the results of previous ABI
Quick Polls.

###


size='3'>ABI is the largest multi-disciplinary,
nonpartisan organization dedicated to research and education on matters
related to insolvency. ABI
was founded in 1982 to provide Congress and the public with unbiased
analysis of bankruptcy issues. The
w:st='on'>ABI membership includes nearly 11,500
attorneys, accountants, bankers, judges, professors, lenders, turnaround

specialists and other bankruptcy professionals, providing a forum for
the exchange of ideas and information. For additional information on
ABI, visit www.abiworld.org.
For additional conference information, visit
title='http://www.abiworld.org/conferences.html'
href='http://www.abiworld.org/conferences.html'>
color='#0000ff'>http://www.abiworld.org/conferences.html.