In Re Hollar

MEMORANDUM ON DEBTORS’ MOTION TO CONVERT TO CHAPTER 13

RICHARD STAIR, Jr., Bankruptcy Judge.

At issue is whether the debtors may convert from Chapter 7 to Chapter 13, 11 U.S.C.A. § 706(a) (West 1979), where the court has previously converted their case from Chapter 11 to Chapter 7. Conceding they do not have an absolute right, the debtors nonetheless contend they should be permitted to convert to Chapter 13. Yellow Plum Mountain Design, Inc. (Yellow Plum), a creditor, contends § 706(a) precludes conversion.

On April 23, 1986, the debtors filed a Chapter 11 bankruptcy petition. On October 9,…