Court Dismissed Chapter 13 Case where Debtors Offered No Explanations for Failing to Amend Schedules or Make Payments, and Took “Cavalier” Attitude Toward Bankruptcy

Court Dismissed Chapter 13 Case where Debtors Offered No Explanations for Failing to Amend Schedules or Make Payments, and Took “Cavalier” Attitude Toward Bankruptcy

Creditors/Movants requested the Court to dismiss a Chapter 13 case which Debtors filed  pro se. On the petition and in the Schedules, the Debtors claimed no previous filings within the last 8 years and that they owed Movants about $39,000.00. The Debtors also asserted in the Statement of Financial Affairs that they had been involves in no lawsuits or administrative actions within the one year period prior to the petition date, and that they had no property foreclosed in this period.

The truth was different: the Debtors had filed a Bankruptcy case within a year of filing this case; it had been dismissed two months before they filed the instant case.  In addition, about 2 months before filing this case, the Debtor had been involved in litigation/administrative proceeding.  The county in which they resided commenced a code enforcement action against the for violating county ordinances against trash and junk in their yard as well as other prohibited structures on their property. Furthermore, the Debtors did have a foreclosure actoin within a year before filing this case: the Movants obtained a foreclosure judgment against them for $55,523 and a judicial sale was scheduled 4 days before the date the Debtors filed the petition.

When they filed this case, the Debtors used the same schedules they had filed in a previous case since they were in a rush to stop the impending foreclosure sale. They hired a lawyer to correct the inaccuracies in their schedules and statements and to defend them at a motion for relief from stay action filed by the Movants. The Court granted adequate protection to the Movants and ordered the Debtors to obtain insurance on the realty by a date certain.

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