Case Summary:
Debtors George and Ellen Conway sought to convert their Chapter 7 case to Chapter 13. They moved to convert more than eight months after they filed their case and after the Chapter 7 trustee had initiated three adversary proceedings to recover assets for their estate. The Debtors' motion was filed in conjunction with a proposed settlement agreement with a creditor, Greenwich Business Capital, which had sued Debtors for alleged fraud and objected to their claimed exemption. This Court determined that Greenwich wasn't properly secured and denied the settlement. Debtors continued to seek conversion, but the Court denied their motion. Administration of the Debtors' case was already well underway, and the Debtors' apparent motives seeking conversion were not to benefit creditors, but rather to attempt to shield assets from administration by the Chapter 7 trustee. Debtors had not demonstrated good faith, and Debtors' proposed Chapter 13 plan was not in the best interest of creditors.

Statute/Rule References:
11 U.S.C. § 704 -- Duties of trustee
11 U.S.C. § 706 -- Conversion
11 U.S.C. § 1307 -- Conversion or dismissal
11 U.S.C. § 1325 -- Confirmation of plan

Key Terms:
Conversion
Good Faith
Time Value of Money