Opinion 1 ROBERT N. OPEL, II, Bankruptcy Judge. This is an individual Chapter 11 proceeding filed by a husband and wife. Two Motions filed by a secured creditor are presently pending. First, a Motion to Convert to Chapter 7 and second, a Motion for Accounting regarding some of the secured creditor's collateral. For the reasons stated herein, I will convert this matter to a case under Chapter 7 of the Bankruptcy Code. Further, I will dismiss the Motion for Accounting, without prejudice to...
OPINION JOHN J. THOMAS, Bankruptcy Judge. The Respondent of this sua sponte Rule 9011 Motion is Countrywide Home Loans, Inc. The Court, as reported in In re Hannon, 421 B.R. 728 (Bankr.M.D.Pa.2009), had scheduled a hearing to determine whether Rule 9011, authorizing the Bankruptcy Court to sanction a party, is appropriate to address what the Court perceived as a failure to comply with a duty to amend a proof of claim. That sua sponte motion, to a significant degree, was based on a...
OPINION MARY D. FRANCE, Chief Judge. The above-subject cases may be decided together because they share a common dispositive legal issue—whether Chapter 13 debtors may calculate their disposable income for plan confirmation purposes by deducting payments on mortgages that their respective plans propose to strip off. 1 The facts of each case are straightforward and have been stipulated to by the parties, as described below. As I will discuss, I conclude that debtors must include in their...
OPINION MARY D. FRANCE, Chief Judge. Before me are cross motions for summary judgment on the adversary complaint filed by Paul and Rosalyn Dronsfield ("Debtors") against Thomas and Susan McGarrity ("McGarritys") requesting a declaratory judgment that a lien held by the McGarritys prior to the filing of the Debtors' Chapter 13 petition was avoided by the discharge granted in that case. For the reasons discussed below, I will grant summary judgment in favor of the McGarritys. I. Procedural...
OPINION JOHN J. THOMAS, Bankruptcy Judge. Plaintiffs-Debtors, James and Diana Lambert, have sued their Chapter 7 Trustee, William G. Schwab, for what they perceive is an effort to collect on an alleged pre-petition obligation owing to D.R. Roofing Systems Inc. Schwab is also the Chapter 7 Trustee for D.R. Roofing. The Debtors have filed a three count Complaint alleging that the Trustee is violating the automatic stay, provisions of the Fair Debt Collection Practices Act (FDCPA) 15 U.S.C....
OPINION 1 JOHN J. THOMAS, Bankruptcy Judge. The Court has for consideration a Motion to Dismiss filed by the above-captioned Defendant. The underlying Complaint seeks to avoid three separate transfers allegedly made by the Debtor to the Defendant as recounted in paragraph 11 of the Complaint. The Complaint seeks to avoid the transfers under 11 U.S.C. 547, 548, 549, and 550, and to disallow all claims pursuant to 11 U.S.C. 502(d). The transfers in question aggregate in total $10,655.93....
OPINION MARY D. FRANCE, Chief Judge. Before me is the motion of Barry L. Michael ("Debtor") to compel the Standing Chapter 13 Trustee ("the Trustee") to turn over funds that Debtor paid into his chapter 13 plan but which were undistributed on the date the case was converted to chapter 7. For the reasons that follow, I will grant the motion. Procedural History On September 10, 2005, Debtor filed a petition under chapter 13 of the Bankruptcy Code. 1 His plan of reorganization, which was...
