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my name is Ron drer Iamp;#39;m an attorney practicing bankruptcy and commercial litigation in Maryland Virginia Delaware and Pennsylvania and today I want to answer the question why do chapter 11 cases get converted to chapter 7 chapter 11 is a procedure for businesses and individuals with sophisticated Financial situations sometimes companies and individuals are losing money and theyamp;#39;re losing value in their assets and thatamp;#39;s at the expense of creditors when that happens a bankruptcy court will say no you donamp;#39;t have the right to continue to reorganize at the expense of creditors weamp;#39;re going to take that right away weamp;#39;re going to put you into a chapter 7 case and weamp;#39;re going to liquidate your assets for the benefit of creditors now usually for a business the conversion of a case to chapter 7 is a death sentence because it means that their operations will have to close that their assets will be liquidated and the company will have