Lack of Financial Distress Results in Chapter 11 Dismissal for Bad Faith
Lack of financial distress was one of several contributing factors for the Tenth Circuit BAP’s affirmance of dismissal for bad faith filing in chapter 11.
On a Split, Ninth Circuit BAP Holds: Misconduct in ‘11’ Doesn’t Prevent Conversion to ‘7’
Given that chapter 7 has remedies like denial of discharge for a debtor’s misconduct, bad faith in chapter 11 doesn’t allow dismissal on conversion to chapter 7.