STEVENSON v TND HOMES I, LP
- Summarized by Alexandra Schnapp , U.S. Bankruptcy Court, Northern District of Georgia
- 7 years 10 months ago
- Case Type:
- Consumer
- Case Status:
- Affirmed
- Citation:
- 17-035 (1st Circuit, Apr 30,2018) Published
- Tag(s):
-
- Ruling:
- The bankruptcy court did not abuse its discretion in dismissing the debtor's chapter 13 case for unreasonable delay prejudicial to creditors within the meaning of section 1307(c)(1) where the debtor filed her chapter 13 case as part of a pattern of conduct aimed at thwarting her landlord's eviction efforts.
- Procedural context:
- The debtor's landlord moved to dismiss the debtor's chapter 13 bankruptcy case. The bankruptcy court granted the motion and dismissed her case. The debtor appealed.
- Facts:
- Debtor and her landlord were involved in state court litigation (the landlord alleged she had failed to pay rent; the debtor disputed the allegations and the landlord's billing practices). Debtor then filed chapter 7 bankruptcy. The landlord sought relief from stay, which the bankruptcy court denied on the condition that debtor pay rent. She did so, and the landlord dismissed the state court action. The debtor's chapter 7 case was discharged and closed.
Debtor then stopped paying rent again. The landlord initiated a new state court action against her, which the debtor again disputed. Debtor filed a chapter 13 bankruptcy case, the day after the state court action was scheduled for trial. Over the period of a year, the debtor filed six different chapter 13 plans; she failed to confirm any of them.
The landlord filed a motion to dismiss the chapter 13 case pursuant to section 1307(c) of the Bankruptcy Code for cause on the basis that the case was not filed in good faith. The landlord contended the debtor filed her case for the sole purpose of delaying and frustrating the landlord and preventing it from prosecuting the state court action. The landlord explained that debtor violated the lease and had no debts to reorganize, other than student loan debt; additionally, any claims she had against the landlord could and should have been litigated in state court. The debtor responded to the motion and objected to dismissal of the case. The bankruptcy court held a hearing on the motion, during which counsel for the landlord argued that the case represented a two-party dispute and an effort by the debtor to hamstring the landlord. After hearing argument, the bankruptcy court granted the motion and dismissed the debtor's chapter 13 case. The debtor appealed.
- Judge(s):
- Lamoutte, Finkle, and Harwood,
ABI Membership is required to access the full summary. Please Sign In using your ABI Member credentials. Not a Member yet? Join ABI now - it is absolutely worth it!
