In re Barbel

Summarized by Michael Nestor , Young Conaway Stargatt & Taylor, LLP
14 years 10 months ago

Citation:

3rd Circuit Court of Appeals, No. 10-3975, Appeal from the United States District Court of the Virgin Islands, Appellate Division of St. Croix, April 14, 2011

Tag(s):

3rd Circuit

Ruling:

The issue to be decided by the Third Circuit Court of Appeals (the "Third Circuit") was whether the Bankruptcy Court erred in determining that appellant's case should be dismissed pursuant to section 109(e) of the Bankruptcy Code as having liquidated, non-contingent, secured debts in excess of the statutory cap. Noting (without any independant analysis) its review of the pleadings, the record and the decision of the District Court affirming the Bankruptcy Court, Judge Ambro, writing for the Court, concluded that "the District Court correctly applied the relevant legal standards" and affirmed, noting "we have nothing to add to the District Court's affirmance of the Bankruptcy Court's order."

Procedural context:

Appeal from the decision of the Bankruptcy Court converting her Chapter 13 case to a Chapter 7 case on the basis, among others, that appellant's liquidated, non-contingent, secured debts exceeded the statutory limit pursuant to section 109(e) of the Bankruptcy Code, thereby precluding her from being a debtor.

Facts:

Appellant had filed 3 successive chapter 13 petitions in response to a judgment and foreclosure proceeding insituted by her lender. In the third Chapter 13 proceeding, lender moved to convert the case to a Chapter 7. The Bankruptcy Court approved the motion and converted the case to Chapter 7 based upon the following: (i) appellant's liquidated, non-contingent, secured debts exceeded the statutory limit pursuant to section 109(e) of the Bankruptcy Code; (ii) conversion was filed in bad faith and, therefore, warranted pursuant to section 1307(c) of the Bankruptcy Code; and (iii) conversion was in the best interest of creditors.

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