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"Arizona Convert Chapter 7"

A conversion of an Arizona bankruptcy case from Chapter 7 to Chapter 13 fundamentally changes the nature of the proceeding. Rather than discharge all unsecured debts, full or partial payments are required for all debts during the duration of the plan term. Conversion of an Arizona bankruptcy case to Chapter 13 does however allow all past due payments to be included within the plan, as if paid current.

11 U.S.C. §706(a0 provides, in part, "The debtor may convert a case under this chapter to a case under chapter 11, 12, or 13 of this title at any time, if the case has not been converted under section 1112, 1208, or 1307 of this title. Any waiver of the right to convert a case under this subsection is unenforceable."

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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