[CLBS] In re Nichols - 9th Cir decision re absolute right to dismiss a chapter 13 case under 1307(b)

[Alexandra Caval]

Law v Siegel continues to have a ripple effect in bankruptcy. Two days ago,
the 9th Cir held that Law v Siegel overruled Rosson, which was a prior 9th
Cir decision that carved out an implied exception for bad faith or abuse of
process when a debtor asserted a right to dismiss a chapter 13 case under
11 USC 1307(b). The 9th Cir now aligns with the 2nd and 6th Circuits on the
issue. Nichols holds that a chapter 13 debtor has an absolute right to
dismiss under 1307(b) unless the debtor has previously converted from
another chapter (7, 11, 12) to chapter 13.

The 9th Cir says the Bankruptcy Code contains enough alternative tools for
bk courts to address debtor misconduct (but doesn't discuss them). Even if
those tools were lacking, it would be Congress's job to create those tools
with appropriate legislation.

It's a good case to read (and it's attached).

-- 

Alexandra O. Caval

Caval Law Office, P.C.

P.O. Box 1716

Twin Falls, ID 83303-01716

T: 208.733.2035

F: 208.733.3919

alex at cavallawoffice.com




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