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In re Scholz

United States Bankruptcy Court, D. Columbia
Mar 25, 2010
Case No. 01-02555 (Bankr. D.D.C. Mar. 25, 2010)

Opinion

Case No. 01-02555.

March 25, 2010


MEMORANDUM DECISION AND ORDER DENYING MOTION TO EXPUNGE CHAPTER 7 CASE FROM PUBLIC RECORD


The debtor has filed with the court a letter asking the court to expunge her bankruptcy case from the public record in order to facilitate her receiving a loan to open a birthing and wellness center (Dkt. No. 14, filed March 18, 2010).

Cases addressing whether a bankruptcy court has the authority to expunge, nullify, or void a bankruptcy case are scarce. At least one court has declined to find that a bankruptcy court has the authority to expunge, nullify, or void a bankruptcy case because there is no "statutory anchor" for such authority in the Bankruptcy Code. In re Woods, No. 05-32207, 2007 WL 130634427, *1 (Bankr. W.D. Mo. May 1, 2007).

Other courts have found the authority to expunge bankruptcy cases in 11 U.S.C. § 105 but only in extraordinary circumstances. In re Storay, 364 B.R. 194, 196 (Bankr. D.S.C. 2006) (holding that cause exists to expunge a case pursuant to 11 U.S.C. § 105 where the debtor did not authorize the filing of the petition); In re Buppelmann, 269 B.R. 341 (Bankr. M.D. Pa. 2001) (denying the debtors' motion to expunge but stating that "the expungement of bankruptcy cases appears to be a rare event exercised with the greatest of prudence by bankruptcy judges under the equitable powers implied under 11 U.S.C. § 105").

The court does not believe that it has authority under 11 U.S.C. § 105 to enter an order expunging the debtor's bankruptcy case. Lenders are entitled to inquire whether the debtor ever filed a prior bankruptcy case if they fear that is a sign that the debtor is a poor credit risk. Nothing in the Bankruptcy Code suggests that the court should expunge a bankruptcy filing so that lenders are deprived of that information (unless the filing was a fraudulent filing, one not authorized by the debtor). The debtor knowingly commenced this case, and, unfortunately, despite the court's sympathy for her plight, must suffer the consequence of a poor credit record arising from the filing. It is thus

ORDERED that the debtor's motion to expunge her bankruptcy case from the public record is DENIED.


Summaries of

In re Scholz

United States Bankruptcy Court, D. Columbia
Mar 25, 2010
Case No. 01-02555 (Bankr. D.D.C. Mar. 25, 2010)
Case details for

In re Scholz

Case Details

Full title:In re KATJA S. SCHOLZ, (Chapter 7), Debtor

Court:United States Bankruptcy Court, D. Columbia

Date published: Mar 25, 2010

Citations

Case No. 01-02555 (Bankr. D.D.C. Mar. 25, 2010)