Hoover, III v. Harrington

As an individual and doing business as Halloween Costume World, Appellant filed a voluntary petition for bankruptcy under Chapter 11 of the Bankruptcy Code. The Trustee filed a motion to dismiss or convert the case to a liquidation proceeding under Chapter 7 of the Bankruptcy Code. The district court granted the motion. The district court affirmed, concluding that cause existed to convert the case to Chapter 7 under section 11 U.S.C. 1112(b)(4)(A). The First Circuit affirmed, holding that there was no error of law or abuse of discretion by the bankruptcy court in converting Appellant’s Chapter 11 bankruptcy case to Chapter 7. View "Hoover, III v. Harrington" on Justia Law