In re Anderson, 70 B.R. 883 (Bankr.D.Utah)
PUBLISHED
The court considered chapter 11 debtors' motion to convert their case to chapter 12. Although the newly enacted Family Farmer Bankruptcy Act provided that the family farmer provision would not apply to cases commenced before the Act's effective date, the court concluded that the legislative history supported an interpretation of that language to mean that the Act would not apply retroactively, and refused to interpret it to penalize farmers already in bankruptcy by requiring them to remain under a chapter that was unworkable. The court then concluded that debtors' requested conversion could only be granted under 11 U.S.C. § 1112(b) after 20 days' notice to all parties in interest, as provided in Bankruptcy Rule 2002(a)(7). The court held that, after such notice, debtors would have to convince the court that conversion would be equitable under the facts of their case.