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"Arizona Convert Chapter 13"

In the past, many debtors in Arizona bankruptcy filed Chapter 13 when past due on home their mortgages. In a chapter 7 case, payments must be brought current to retain possession. In a Chapter 13 case, once mortgage payments are brought current through trustee payments (based upon priority assigned to particular debts), many debtors sought conversion to discharge all remaining debts through Chapter 7.

11 U.S.C. §348(f)(2): "If the debtor converts a case under chapter 13 of this title to a case under another chapter under this title in bad faith, the property in the converted case shall consist of the property of the estate as of the date of conversion"

In the matter of ARIZONA BANKRUPTCY PETITION PREPARERS, General order No. 89 issued by the U.S. District. Arizona Bankruptcy Court., July 1, 2003. 11 USC 110(k) does not permit a bankruptcy petition preparer to engage in activities "that are otherwise prohibited by law. including the rules and laws that prohibit the unauthorized practice of law." The Supreme Court of the State of Arizona has enacted amendments to its Rule 31 governing the unauthorized practice of law which became effective commencing July 1, 2003. Rule 31 sets forth the general rule that only an active member of the State Bar of Arizona may practice law in the State. The amendments also create a limited exception for certified legal document preparers provided that the services performed are in compliance with State Code of Judicial Administration, Part 7, Chapter 2, Section 7-208.

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