Issue link: https://mbozikis.ufcontent.com/i/1422521
205 Chapter to which conversion is sought. 11 U.S.C. § 706(d). There are two methods for conversion of a Chapter 7 case. First, upon the request of a debtor only, a Chapter 7 case can be converted to a case under any of Chapters 11, 12 or 13. 11 U.S.C. § 706(a). Notice and a hearing is not required when the request is made under Section 706(a), although a hearing can be required by the court. See F ED. R. BANKR. P. 1017(f)(2). However, a debtor can only request conversion under Section 706(a) if the case has not previously been converted under Sections 1112, 1208 or 1307 of the Bankruptcy Code. 11 U.S.C. § 706(a). Although such relief is generally considered mandatory as long as the requirements of Section 706(a) are met, the U.S. Supreme Court has held that conversion under Section 706(a) can be denied when the subsequent case would be subject to immediate dismissal. The Court, however, indicated that such denial should be limited to extreme situations. See Marrama v. Citizens Bank of Mass., 549 U.S. 365 (2007). Second, any party in interest, including the debtor, can request conversion under Section 706(b). Under this Section, there is no requirement that the case not have been previously converted from another Chapter; however, conversion under Section 706(b) is limited to Chapter 11. Further, conversion under Section 706(b) is expressly subject to notice and a hearing. Consistent with Sections 706(a) and (b), Section 706(c) explicitly provides that a conversion to Chapters 12 or 13 can only be made at the request, or with the consent, of the debtor. Also, similar to Chapter 11 cases, Chapter 7 cases may be dismissed. 11 U.S.C. § 707(a). However, unlike conversion, the ability of a court to dismiss a Chapter 7 case is constrained. In particular, a request for dismissal is subject to notice and a hearing and may be "only for cause." Examples of cause set forth in Section 707(a) include: (i) unreasonable delay by the debtor that prejudices creditors; (ii) nonpayment of certain fees or charges; and (iii) failure of the debtor to timely file certain information with the court in a voluntary case.