In In re West, Ch. 7 Case No. 05-32033, 2006 Bankr. LEXIS 2440 (Bankr. M.D. Ga. October 2, 2006) (Hershner), the debtors filed a Chapter 7 petition. Creditors subsequently alleged that the debtors’ schedules and statement of financial affairs were inaccurate and failed to list significant assets, and filed a dischargeability action under §523 and §727.
Debtors then filed a motion to convert to a Chapter 13, and the creditors objected based upon the lack of good faith. The court noted that other courts disagree on whether a debtor has an absolute right to convert from Chapter 7 to Chapter 13. However, based upon the clear, unambiguous language of §706, the Court held that debtors did have the right to convert to a Chapter 13. The issue raised by the creditors could be raised at the confirmation hearing on the debtors’ Chapter 13 plan.