Conversion of Case to Chapter 7 Is Final Order

The order of a bankruptcy judge granting a Chapter 11 trustee’s motion to convert to a Chapter 7 proceeding was deemed appealable by the U.S. Court of Appeals for the Seventh Circuit. The court found the appeal frivolous and said further appeals would warrant sanctions (In re USA Baby Inc. (Appeals of Wallis), 7th Cir., 11-2018, 3/28/12).

The appellant, a shareholder and former president of the debtor, moved for reconsideration of the order of the bankruptcy court converting the case to a Chapter 7 case. The plaintiff alleged that the bankruptcy trustee and debtor’s franchisees committed fraud, ...