A Florida federal bankruptcy judge has converted the Chapter 11 case of an attorney who was acquitted last year in a billion-dollar medical fraud scheme to Chapter 7 proceedings. The decision came on the grounds that the debtor is currently unemployed and lacks the financial means to repay his creditors. The attorney had initially sought to have his Chapter 11 case dismissed, a request the judge denied. The shift to Chapter 7 is significant as it could involve the liquidation of the debtor’s assets to satisfy outstanding debts.
For more detailed information, you can refer to Law360’s report on the case
here.