In re Brito, 6:14-bk-22236-MH. (2018)
Court: United States Bankruptcy Court, C.D. California
Number: inbco20180507402
Visitors: 29
Filed: May 04, 2018
Latest Update: May 04, 2018
Summary: ORDER DISMISSING CHAPTER 13 CASE MARK HOULE , Bankruptcy Judge . The continued hearing on the Motion to Dismiss Chapter 13 Case ("Motion") brought by Creditor California Department of Tax and Fee Administration was held on April 26, 2018, at 11:00 a.m., the Honorable Mark Houle, United States Bankruptcy Judge, presiding. Appearances were waived. The court, having considered the Motion and declarations submitted in support thereof, no opposition having been made, for the reasons stated in th
Summary: ORDER DISMISSING CHAPTER 13 CASE MARK HOULE , Bankruptcy Judge . The continued hearing on the Motion to Dismiss Chapter 13 Case ("Motion") brought by Creditor California Department of Tax and Fee Administration was held on April 26, 2018, at 11:00 a.m., the Honorable Mark Houle, United States Bankruptcy Judge, presiding. Appearances were waived. The court, having considered the Motion and declarations submitted in support thereof, no opposition having been made, for the reasons stated in the..
More
ORDER DISMISSING CHAPTER 13 CASE
MARK HOULE, Bankruptcy Judge.
The continued hearing on the Motion to Dismiss Chapter 13 Case ("Motion") brought by Creditor California Department of Tax and Fee Administration was held on April 26, 2018, at 11:00 a.m., the Honorable Mark Houle, United States Bankruptcy Judge, presiding. Appearances were waived. The court, having considered the Motion and declarations submitted in support thereof, no opposition having been made, for the reasons stated in the court's tentative ruling, attached hereto, and good cause appearing,
IT IS HEREBY ORDERED that:
1. Cause exists for dismissal pursuant to 11 U.S.C. § 1307(c)(1) and (c)(6) and the Motion's request for dismissal is granted;
2. The Chapter 13 case is dismissed.
United States Bankruptcy Court Central District of California Riverside Judge Mark Houle, Presiding Courtroom 303 Calendar
Thursday, April 26, 2018 Hearing Room 303
11:01 AM
6:14-22236 Gustavo Brito Chapter 13
#57.00 CONT Motion to Dismiss Case for Failure to Make Plan Payments
From: 3/22/18, 4/19/18
EH ____
Docket 71
Tentative Ruling:
04/26/2018
The hearing on the Motion was continued for proper service on the Debtor. A Notice of Continued Hearing correcting the prior service error was filed on March 26, 2018, and the Debtor has failed to file any opposition or response which the Court deems as consent to the granting of the Motion under LBR 9013-1 (h). Based on the prior tentative ruling, the Court is inclined to GRANT the Motion and dismiss the case for non-payment of post-petition tax liabilities.
APPEARANCES WAIVED. Movant to lodge an order attaching both of this Court's tentative rulings as an exhibit.
3/22/18
BACKGROUND
On September 30, 2014, Gustavo Brito ("Debtor") fi led a Chapter 13 voluntary petition. On November 20, 2014, Debtor's Chapter 13 plan was confirmed. The mandatory Chapter 13 form plan contains a provision (Section V.H) which states: "The Debtor will pay timely all postconfirmation tax liabilities directly to the appropriate taxing authorities as they become due."
Since confirmation the Trustee has fi led three motions to dismiss, all of which were ultimately resolved. Additionally, the Chapter 13 plan has been modified once. On February 23, 2018, the California Department of Tax & Fee Administration ("CDTFA") filed a motion to dismiss or convert to Chapter 7 on the basis that Debtors had not paid their postconfirmation taxes. The Court notes that the motion was served on Debtors' attorney, but was not served on Debtors.
DISCUSSION
The Court will continue the matter for CDTFA to serve the motion on Debtors.
Regarding the merits, the Court notes that 11 U.S.C. § 1307(c)(6) provides for dismissal or conversion for cause which is defined to include "material default by the debtor with respect to a term of a confirmed plan." Here, the Court notes that Debtors' confirmed plan provided that all postconfirmation tax liabilities were to be timely paid. CDTFA has provided evidence that Debtor has accrued $19,888.54 in post-petition tax liabilities which constitutes a material default satisfying § 1307(c)(6). Because Debtors do not appear to have meaningful unencumbered, unexempt assets, this Court would be inclined to dismiss the case rather than convert it to Chapter 7.
TENTATIVE RULING
The Court is inclined to CONTINUE the matter to April 19, 2018 at 12:30 p.m. for proper service of the motion on Debtors.
APPEARANCES REQUIRED.
Party Information
Debtor(s):
Gustavo Brito Represented By
Freddie V Vega
Movant(s):
California Department of Tax and Represented By
Suman Mathews
Trustee(s):
Rod Danielson (TR) Pro Se
Source: Leagle
