1.
Under 11 USC § 706(a), the debtor may convert a Chapter 7 case to Chapter 11, 12, or 13 at any time, if the case has not been previously converted from Chapter 11, 12 or 13. Also, the court may, upon request of a party in interest and after notice and hearing, convert a Chapter 7 case to Chapter 11, but may not convert a Chapter 7 case to Chapter 12 or 13 unless the debtor requests or consents to such conversion. 11 USC § 706(b) & (c).
2.
Under 11 USC § 707(a), the court may dismiss a Chapter 7 case only after notice and a hearing and only for cause, including:
A.
unreasonable delay by the debtor that is prejudicial to creditors;
B.
nonpayment of any required fees or charges; or
C.
failure of the debtor in a voluntary case to file the schedules required by 11 USC § 521 within 15 days of the commencement of the case, but only on motion of the United States Trustee.
3.
Courts can dismiss a case on other grounds, including bad faith in filing the petition.
4.
Section 707(b) provides that the court, on its own motion or by motion of the United States Trustee or any party in interest (e.g., panel trustee or a creditor), may dismiss a Chapter 7 case filed by an individual debtor, or convert the case to Chapter 11 or 13 (with the debtor's consent), if his or her debts are primarily consumer debts. In this situation the court must first find that granting Chapter 7 relief would be an abuse under 11 USC § 707(b)(2). There is a presumption of abuse if the debtor fails to meet a means test calculation based on income, expenses, and certain debts. In a joint case, the means test calculation would be based on the financial information of both spouses.
5.
A Chapter 7 case cannot be dismissed or converted based on any form of means testing if the debtor is a disabled veteran and the indebtedness occurred primarily during a period of active duty or while the debtor was performing a homeland defense activity. 11 USC § 707(b)(2)(D)(i).
6.
A Chapter 7 case cannot be dismissed or converted based on any form of means testing with respect to the debtor while the debtor is on, and during the 540-day period beginning immediately after the debtor is released from, a period of active duty or performing a homeland defense activity of not less than 90 days. 11 USC § 707(b)(2)(D)(ii).
www.irs.gov/irm/part5/irm_05-017-009.html