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The summaries on this website are summaries of the opinions issued by the judges of the Bankruptcy Court for the Western District of Virginia from October 2004 to date. The opinions may be searched by year, judge, category and chapter. For a more detailed search, enter a keyword in the search box above. This opinion bank, however, is not an exhaustive list of opinions issued by the judges of the Western District. These summaries are not intended to replace other research methods, but may be used as a starting point for your research. These summaries do not contain information as to whether an opinion has been published, appealed or the disposition of any such appeal, or otherwise overruled or affected by subsequent case law or statute. These summaries have been prepared for the convenience of the researcher and in no way constitute an interpretation by the Court of the opinion summarized. Please rely on the opinion not the summary. Please contact Judge Connelly's chambers or Judge Black's chambers regarding any questions or errors.

In re Taylor (Case No. 09-72532) 01/13/2010

The Chapter 13 trustee filed an objection to confirmation and a motion to convert this case to one under Chapter 7 or dismiss this case with prejudice pursuant to 11 U.S.C. § 349(a).  Bad faith in filing a Chapter 13 case can be cause for dismissal or conversion, whichever is in the best interests of creditors and the estate.  The Court found that the debtors have exhibited bad faith in the filing of their bankruptcy petition because the failed to make any payments to the Chapter 13 trustee or to their mortgage lender within the time required.  Further, by the debtors' own admissions, at the time they filed their case and Chapter 13 plan, they did not have the financial means to make payments to the trustee and their mortgage payments and still cover their living expenses.  The Court concluded that cause exists to dismiss this case; nevertheless, the Court stayed the order dismissing the case for a period of fourteen days to permit the debtors to file a motion to convert the case to Chapter 7.

In re Koonts (Case No. 08-61880) 01/12/2010

           The United States trustee filed a motion to dismiss this case under 11 U.S.C. § 707(b)(3)(B).  The burden of persuasion was on the United States trustee to prove by a preponderance of the evidence that the continued prosecution of this chapter 7 case would constitute abuse.  The debtor’s monthly disposable income in a chapter 13 case would have been negative.  The Court found that, even if most of the United States trustee’s arguments regarding expenses were valid, the debtor could have only paid a dividend of no more than 2.5% to his unsecured creditors.  The Court thus concluded that it was not an abuse of the provisions of chapter 7 to permit the debtor to prosecute his case under that chapter.

In re Thomason (Case No. 09-72339) 12/29/2009

Debtors' motion to approve reaffirmation agreement as to second deed of trust denied as debtors were current on obligations and contract contained no ipso facto clause authorizing creditor to foreclose simply by reason of bankruptcy filing.  Additionally, counsel did not execute certification pursuant to section 524 that despite presumption of undue hardship, in his/her opinion, debtors were able to make the payment.

In re Allison (Case No. 09-71737) 12.4.2009

Debtor's motion to approve reaffirmation agreement denied under section 524(c), 524(d) and 524(k)(5) as debtor was represented by counsel during the negotiation of the agreement but counsel did not sign certification that in his/her opinion the debtor was able to make the payment despite presumption of undue hardship. If counsel does make certification, presumption of undue hardship rebutted in light of creditor waiving accrual of interest, relatively small monthly payment, financial assistance provided by family member and apparent importance of this matter to the family.

In re Wharton (Case No. 09-61741-LYN) 11/20/09

Debtors sought reconsideration of the order denying their motion to avoid the lien of Beneficial Discount Company of Virginia on the grounds that the Callands property was located outside the City of Danville. The motion was originally brought under 11 U.S.C. §522. The Court determined that the motion was not ripe to the extent that it concerns the Callands property because the property was not located within the City of Danville.

In re Meade (Case No. 08-70942) 11/13/09

United States Trustee filed a motion to dismiss. The Trustee argued that a presumption of abuse arises under 11 U.S.C. 707(b)(2) and alternatively that dismissal was warranted under 11 U.S.C. 707(b)(3). The debtors’ disposable income was above that which is allowed under the code. The debtors had an opportunity to rebut this presumption. They failed to do so satisfactorily. Accordingly, the Court granted the Trustee’s motion to dismiss, however a period of time was set aside in which the Court would allow the debtors to convert to chapter 7.

In re Prestige Ford-Lincoln-Mercury, Inc. (Case No. 09-71721) 11/03/09

Debtor motioned for the entry of an order compelling Cantrell Auto Sales, Inc. to turnover vehicle titles belonging to the estate pursuant to 11 U.S.C. § 542(a). Cantrell filed an answer and objection thereto. The Court applied the Pacor test to determine that the contested matter sufficiently related to the bankruptcy case. The Court concluded that the sale of the vehicle did not conflict with state law and that good title superior to the rights of Cantrell was conferred upon the purchaser. The Court entered the requested order.

In re Howard (Case No. 09-71145) 10/13/09

Plaintiff filed a motion for relief from stay and co-debtor stay against the Debtor, his wife alleged to be a co-debtor upon the obligation and the Chapter 13 Trustee for the case. The Debtor denied the material allegations of the motion. The Court held that, although dismissing the motion without prejudice would be justified, a better outcome would be to continue the automatic stay until an agreed final hearing date could be set.

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