Post-conversion procedures including supplemental schedules, new claims bar dates, administrative claim treatment, and trustee transition.
When a chapter 11, chapter 12, or chapter 13 case has been converted or reconverted to a chapter 7 case:
(1) Filing of lists, inventories, schedules, statements. Lists, inventories, schedules, and statements of financial affairs theretofore filed shall be deemed to be filed in the chapter 7 case, unless the court directs otherwise. If they have not been filed, the debtor shall comply with Rule 1007 as if an order for relief had been entered on an involuntary petition on the date of the entry of the order directing that the case continue under chapter 7. Fed. R. Bankr. P. 1019(1).
Federal Rule of Bankruptcy Procedure 1019 establishes the procedural framework that applies when a Chapter 11, 12, or 13 case is converted to Chapter 7. Conversion changes the operative chapter of the case but does not commence a new case: the original petition date controls for most substantive purposes under 11 U.S.C. Section 348. Rule 1019 governs the bridge from the prior chapter's procedural posture to the Chapter 7 procedural framework.
The rule contains seven numbered subdivisions addressing schedules, claims bar dates, the new meeting of creditors, statements of intent, post-petition transactions, administrative claim treatment, and claim allowance.
Schedules and statements of financial affairs filed in the prior chapter case carry forward into the Chapter 7 case unless the court directs otherwise. The debtor is not required to refile the schedules already on file. If schedules were not filed (e.g., conversion before the debtor's filing deadline expired in a Chapter 13 case), the debtor must file them as if the case were newly opened under Rule 1007.
Rule 1019(5) requires the debtor to file, within 14 days of the conversion order, a schedule of unpaid debts incurred after the commencement of the original case and before conversion to Chapter 7, and a statement of executory contracts entered into or assumed during the same period. These post-petition debts are eligible for administrative claim treatment to the extent they were authorized by the prior chapter case.
Rule 1019(2) provides for a new time to file claims in the Chapter 7 case for claims that arose before the conversion order and were not filed in the prior chapter case. This addresses the situation where the conversion makes claims that would not have shared in a Chapter 13 plan (e.g., late-arising unsecured claims) potentially recoverable in a Chapter 7 liquidation.
The new bar date is set by the court and operates under the framework of Rule 3002 as if the Chapter 7 case were newly commenced. Notice of the new bar date is given through the standard Rule 2002 notice mechanism.
Rule 1019(2) also provides for a new meeting of creditors under 11 U.S.C. Section 341(a) in the converted Chapter 7 case. The meeting is conducted by the newly-appointed Chapter 7 trustee. The new Section 341 meeting is the operational reset point for the Chapter 7 case: the trustee examines the debtor on the record, parties in interest may question the debtor, and the trustee identifies estate assets and claims.
Conversion to Chapter 7 results in the appointment of a Chapter 7 trustee under Section 701. The transition issues include:
Administrative claims incurred during the prior chapter case generally retain their administrative status under Section 348(d), but they are subordinated to Chapter 7 administrative claims under the priority scheme of Section 726(b). This "Chapter 7 first" priority recognizes that the Chapter 7 trustee and counsel must be willing to administer the converted estate; without priority, they would be reluctant to take on a case with substantial pre-conversion administrative debt.
The practical effect is that Chapter 11 professionals whose fees were not paid before conversion often face substantially diminished recovery in the converted Chapter 7 case. This priority structure influences professional retention and fee planning in Chapter 11 cases that are at risk of conversion.
For most purposes under the Code, the date of the original order for relief - not the conversion date - controls. Section 348(a) provides that conversion does not change the date of the order for relief. Several exceptions apply, however:
A Chapter 13 debtor fails to maintain plan payments and the trustee moves to convert under Section 1307(c). The court enters an order converting the case to Chapter 7. A Chapter 7 trustee is appointed and conducts a new Section 341 meeting. Schedules from the Chapter 13 case carry forward. A new bar date is set for post-petition claims under Rule 1019(5). The Chapter 7 trustee identifies non-exempt assets and administers them for distribution under Section 726.
A Chapter 11 debtor in possession fails to confirm a plan within the deadlines under Section 1121, and a creditor moves to convert under Section 1112(b). The court grants the motion. A Chapter 7 trustee is appointed; estate property transfers from the DIP to the trustee. Chapter 11 administrative claims are subordinated to Chapter 7 administrative claims under Section 726(b). The trustee evaluates estate assets, including pending causes of action, for liquidation.
Rule 1019 is the procedural rulebook for one of the more common transitions in bankruptcy practice: the conversion of a reorganization case to liquidation. Conversion is a substantive change in the case's posture, but Rule 1019's design preserves continuity where possible - schedules and statements carry forward; previously-filed claims remain - while triggering the procedural resets necessary to align the case with Chapter 7's substantive framework.
The administrative-priority subordination under Section 726(b) is one of the most significant practical consequences of conversion. Professionals in distressed Chapter 11 cases routinely structure fee arrangements and interim compensation requests with conversion risk in mind, recognizing that pre-conversion administrative claims may be substantially impaired if the case converts.
Conversion does not commence a new case. The original petition date controls for most Code purposes - the operation of the automatic stay, the relation-back of avoidance powers, the calculation of look-back periods. Rule 1019's procedural resets address claim deadlines, schedules, and the meeting of creditors, but the substantive case remains the same case under a different chapter.
This page provides general information about Federal Rule of Bankruptcy Procedure 1019. It does not constitute legal advice. Conversion procedure in any specific case depends on the prior chapter, the basis for conversion, and applicable local rules, and should be evaluated by qualified counsel.