Chapter 11 to chapter 7

[Tosh]

Jurisdiction

New Jersey

I received a letter from bankruptcy court and i have hearing in a week. It says the hearing is to convert case from chapter 11 to chapter 7. These are all alien words to me. I dont know which credit card company filed this lawsuit, since i have multiple accounts on collection. I tried to contact the debtors and settle the amount but they dont have working phone number. And the hearing is on new jersey while i live in dallas. What do i do now?

What happens in this case if i dont go to the hearing? And what does converting from chapter 11 to chapter 7 anyway? Amount might be around $1000 or so

 

[army judge]

I received a letter from bankruptcy court and i have hearing in a week. It says the hearing is to convert case from chapter 11 to chapter 7. These are all alien words to me. I dont know which credit card company filed this lawsuit, since i have multiple accounts on collection. I tried to contact the debtors and settle the amount but they dont have working phone number. And the hearing is on new jersey while i live in dallas. What do i do now?

You might wish to discuss this matter with a couple local bankruptcy attorneys.

I have never heard of a bankruptcy filing being initiated by your creditor(s).

The first thought that comes to mind, if you didn't file, someone might be using your identity unlawfully.

Meanwhile, you might find this to be interesting reading:



What To Do When You Receive A Bankruptcy Notice: Foster Swift

Chapter 7 vs. Chapter 11 Explained | Upsolve

What happens in this case if i dont go to the hearing? And what does converting from chapter 11 to chapter 7 anyway?

If you have no knowledge of this alleged filing, only a bankruptcy attorney near you can offer you useful guidance.

It is absolutely useless for me to opine on something I know less about than do you.

You desperately need the advice of a licensed attorney near you, not the useless words of an uninformed dummy like me.

 

[zddoodah]

I received a letter from bankruptcy court and i have hearing in a week. It says the hearing is to convert case from chapter 11 to chapter 7.

Why are you getting a letter from a bankruptcy court? Did you file bankruptcy? Since the case isn't in your state, I'm guessing not. Or does this relate to the bankruptcy of some other person/entity? If the latter, what does this other person's case have to do with you? If this is your case, do you have a lawyer?

These are all alien words to me.

The "chapters" refer to chapters of the U.S. Bankruptcy Code. Chapter 7 is a liquidation and is the most common type of bankruptcy filed by individuals. Chapter 11 is typically reserved for corporations (although individuals can, in rare cases, file under Chapter 11). Sometimes reorganization under Ch. 11 isn't possible, and the case gets converted to Ch. 7.

I dont know which credit card company filed this lawsuit, since i have multiple accounts on collection.

What lawsuit? Bankruptcy is not a lawsuit. What makes you think someone has sued you?

I tried to contact the debtors and settle the amount but they dont have working phone number.

In a bankruptcy case, the person seeking relief is called the debtor. People or companies to whom you owe money are your creditors.

And the hearing is on new jersey while i live in dallas. What do i do now?

If you can explain clearly what's happening, we might be able to offer you some insight.

What happens in this case if i dont go to the hearing?

Probably the same thing that would happen if you did attend the hearing.

 

[Tosh]

So i get this on mail and im all freaked out!

 

[despritfreya]

You are apparently listed as a creditor or potential creditor of Immune Pharmaceuticals. One of Immune's creditors has asked the bk court to convert the Chapter 11 to a Chapter 7, probably due to some "bad act" of the entity's management. If that happens unsecured creditors are likely to get nothing however, if there are assets and you are notified to file a Proof of Claim you will want to figure out what is owed to you and file one. If there is nothing owed to you then forget about it.

Unless you have some overwhelming interest in this Chapter 11 there is nothing for you to do but read whatever mail you get and, when the time comes, timely file a Proof of Claim if you are owed money.

Edt to add: here is some additional info:

Immune Pharmaceuticals Files for Chapter 11 Protection

Des.

 

[despritfreya]

I have never heard of a bankruptcy filing being initiated by your creditor(s).

@army judge While we now know that the notice OP received does not relate to OP's case, I just wanted to give a "FYI". Involuntary bankruptcy filings happen all the time. Such cases are typically filed by 3 or more unsecured creditors of a particular debtor. There is even a bk code section that provides for it. See 11 USC 303.

Des.

 

[army judge]

@army judge While we now know that the notice OP received does not relate to OP's case, I just wanted to give a "FYI". Involuntary bankruptcy filings happen all the time. Such cases are typically filed by 3 or more unsecured creditors of a particular debtor. There is even a bk code section that provides for it. See 11 USC 303.

Des.

Thank you for the cite and information, my friend.

I hope your health is improving.

 

[despritfreya]

I hope your health is improving.

Thank you for the well wishes. I am doing just fine now.

Des.

 

[Tosh]

Thankyou so much from the bottom of my heart! I was so freaked out and im so calm now.

 

[zddoodah]

So i get this on mail and im all freaked out

This notice relates to a bankruptcy filed by a company called Immune Pharmaceuticals and a motion filed by a creditor called Discover Growth Fund, LLC to convert the case from Ch. 11 to Ch. 7. What the case has to do with you is beyond the ability of anyone here to know (it might be that you're listed as a creditor or potential creditor, but that's not the only possibility), but someone obviously thought you needed to get notice of this.