Given that chapter 7 has remedies like denial of discharge for a debtor’s misconduct, bad faith in chapter 11 doesn’t allow dismissal on conversion to chapter 7.
Delaware judge wouldn’t allow a chapter 11 debtor to restructure the same secured debt a second time in a different venue.
March 2025
Bankruptcy Judge David Cleary wrote a manual on how a company can be ‘bankruptcy remote’ without violating public policy.
A corporate debtor with no income and no operating business could convert an involuntary chapter 7 case to Subchapter V of chapter 11.