[CLBS] abuse of chapter 7

[rgreenwood at greenwoodlaw.com]

 See In re Padilla, 222 F.3d 1184 (9th Cir.2000)as explained by In re U.S.
Voting Machines, Inc., 2007 WL 4287526 (N.D. Cal. 2007).  The Voting
Machines case is not citeable as prescedent but is post 2005 amandments. 
Cite check Padilla, but note many of the cases refer to consumer cases.

Just a thought from a former bankruptcy lawyer (who once eas blind sided by
Padilla when it was a new case)

Dick Greenwood

Original Message:
-----------------
From: Loren K. Messerly lmesserly at greenerlaw.com
Date: Fri, 13 Apr 2012 12:32:28 -0600
To: clbs at admws.idaho.gov
Subject: [CLBS] abuse of chapter 7


Looking for an update on the state of the law, at least with Idaho's
bankruptcy judges, regarding bad faith chapter 7 filings.  In other
words, we have a debtor who filed a "non-consumer" chapter 7.  Thus he
did not fill out the means test.  Assuming we cannot challenge that
characterization, what are decisions currently saying about still trying
to force them into a chapter 13 because they are very well-employed and
will make significant income going forward? Are we stuck with a chapter
7 or do we have an argument for pushing a high-income debtor with a
majority of business debt into a chapter 13? If you could point me to
the controlling case for Idaho judges, that would be much appreciated.

 

Regards,

Loren

 

Loren K. Messerly | attorney

GB+S greener burke shoemaker p.a.

950 w. bannock street, suite 950|boise|idaho 83702-6138 
o: 208.319.2600|f: 208.319.2601|e: lmesserly at greenerlaw.com

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