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2026-07-06 09:52:37 -04:00

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LegalText 11 U.S.C. § 706 Conversion us united_states_code code_section 11 BANKRUPTCY 7 LIQUIDATION 706 11 U.S.C. § 706 current 119-100 2026-06-26 official https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc11@119-100.zip /us/usc/t11/s706 data/legal/raw/us/code/title-11/usc11.xml cc3911e2b265e3ccc089dccf6e83d6969dff4ebf5592009fce6fb2ddfc77735c 49b32bf784de01de21874d64b5d1d78d1d245352824a03caa6d6b941a4a2c9a2 d1c189bf12d8c4310c1799f900372979d9651d72b054dde34c9da006aacaf37a 2026-07-04 official
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11 U.S.C. § 706 - Conversion

Text

(a) The debtor may convert a case under this chapter to a case under chapter 11, 12, or 13 of this title at any time, if the case has not been converted under section 1112, 1208, or 1307 of this title. Any waiver of the right to convert a case under this subsection is unenforceable.

(b) On request of a party in interest and after notice and a hearing, the court may convert a case under this chapter to a case under chapter 11 of this title at any time.

(c) The court may not convert a case under this chapter to a case under chapter 12 or 13 of this title unless the debtor requests or consents to such conversion.

(d) Notwithstanding any other provision of this section, a case may not be converted to a case under another chapter of this title unless the debtor may be a debtor under such chapter.

(Pub. L. 95598, Nov. 6, 1978, 92 Stat. 2606; Pub. L. 99554, title II, § 257(q), Oct. 27, 1986, 100 Stat. 3115; Pub. L. 103394, title V, § 501(d)(22), Oct. 22, 1994, 108 Stat. 4146; Pub. L. 1098, title I, § 101, Apr. 20, 2005, 119 Stat. 27.)

Notes

Historical and Revision Notes

legislative statementsSection 706(a) of the House amendment adopts a provision contained in the Senate amendment indicating that a waiver of the right to convert a case under section 706(a) is unenforceable. The explicit reference in title 11 forbidding the waiver of certain rights is not intended to imply that other rights, such as the right to file a voluntary bankruptcy case under section 301, may be waived. Section 706 of the House amendment adopts a similar provision contained in H.R. 8200 as passed by the House. Competing proposals contained in section 706(c) and section 706(d) of the Senate amendment are rejected.

senate report no. 95989Subsection (a) of this section gives the debtor the one-time absolute right of conversion of a liquidation case to a reorganization or individual repayment plan case. If the case has already once been converted from chapter 11 or 13 to chapter 7, then the debtor does not have that right. The policy of the provision is that the debtor should always be given the opportunity to repay his debts, and a waiver of the right to convert a case is unenforceable. Subsection (b) permits the court, on request of a party in interest and after notice and a hearing, to convert the case to chapter 11 at any time. The decision whether to convert is left in the sound discretion of the court, based on what will most inure to the benefit of all parties in interest. Subsection (c) is part of the prohibition against involuntary chapter 13 cases, and prohibits the court from converting a case to chapter 13 without the debtors consent. Subsection (d) reinforces section 109 by prohibiting conversion to a chapter unless the debtor is eligible to be a debtor under that chapter.

Editorial Notes

Amendments2005—Subsec. (c). Pub. L. 1098 inserted “or consents to” after “requests”. 1994—Subsec. (a). Pub. L. 103394 substituted “1208, or 1307” for “1307, or 1208”. 1986—Subsec. (a). Pub. L. 99554, § 257(q)(1), inserted references to chapter 12 and section 1208 of this title. Subsec. (c). Pub. L. 99554, § 257(q)(2), inserted reference to chapter 12.

Statutory Notes and Related Subsidiaries

Effective Date of 2005 AmendmentAmendment by Pub. L. 1098 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 1098, set out as a note under section 101 of this title.

Effective Date of 1994 AmendmentAmendment by Pub. L. 103394 effective Oct. 22, 1994, and not applicable with respect to cases commenced under this title before Oct. 22, 1994, see section 702 of Pub. L. 103394, set out as a note under section 101 of this title.

Effective Date of 1986 AmendmentAmendment by Pub. L. 99554 effective 30 days after Oct. 27, 1986, but not applicable to cases commenced under this title before that date, see section 302(a), (c)(1) of Pub. L. 99554, set out as a note under section 581 of Title 28, Judiciary and Judicial Procedure.