Bankruptcy Judge Michael Fagone permits dismissal of a chapter 13 case, but with a bar to refiling within two years.
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.
A corporate debtor with no income and no operating business could convert an involuntary chapter 7 case to Subchapter V of chapter 11.
