Boston Judge Allows Conversion to Chapter 13 Just to Prevent the Sale of a Home

As reported by the American Bankruptcy Institute on December 29, 2017, a Boston Judge Allows Conversion to Chapter 13 Just to Prevent the Sale of a Home

Consumers are entitled to convert a Chapter 7 case to Chapter 13 even if the only reason is to prevent a trustee from selling their home, according to Chief Bankruptcy Judge Melvin S. Hoffman of Boston.

The Chapter 7 trustee had arranged a sale of the debtors’ home. The purchase price would only cover the mortgage and a portion of the tax liens. Judge Hoffman said that the sale would only pay secured creditors, the trustee, and the trustee’s counsel, leaving nothing for the debtors or unsecured creditor11