In re Taylor — District Court Reverses Judge Wayne Johnson and Rules “Chapter 13 debtor’s right to convert to Chapter 7 is absolute.”

In re Taylor — Case No. EDCV 11-1879-GHK

Appeal from Bankruptcy Court’s (Judge Johnson, Riverside) dismissal of Chapter 13 case at the confirmation hearing “for failure to make payments and….timely file a secured debt payment history declaration” even though Debtors had filed their Notice of Conversion from Chapter 13 to Chapter 7 the day before the confirmation hearing.

The District Court reversed holding that “a Chapter 13 debtor’s right to convert to Chapter 7 is absolute…the Bankruptcy Court erred in failing to give effect to Appellants’ Notice of Conversion and subsequently dismissing Appellants’ Chapter 13 case.” Case was remanded to the Bankruptcy Court.

Read the decision, written by Hon. George H. King, here.  I sat next to Judge King at Federal Bar Association program a couple of months ago (Dean Chemerinsky’s annual Supreme Court Review)!

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