Opinion
Bankruptcy No. 19-70647-JAD
01-15-2020
IN RE: Linda M. WARD, Debtor. Linda M. Ward, Movant, v. No Respondent.
Glenn R. Bartifay, Murrysville, PA, for Debtor.
Glenn R. Bartifay, Murrysville, PA, for Debtor.
MEMORANDUM ORDER (A) DENYING MOTION FOR EXTENSION OF TIME TO FILE SCHEDULES, DECLARATIONS, STATEMENTS AND PLAN, and (B) SETTING RULE TO SHOW CAUSE AS TO WHAT SANCTIONS SHOULD BE ISSUED FOR DEBTOR'S FAILURE TO ADHERE TO DEBTOR'S DUTIES
The Honorable Jeffery A. Deller, United States Bankruptcy Judge
On January 14, 2020, the above captioned Debtor, through counsel, filed a motion styled as a Motion for Extension of Time to File Schedules, Declarations, Statements and Plan (the "Motion to Extend Time to Comply"). This is the 7th time in this case whereby the Debtor seeks additional time to file documents required by applicable rules of bankruptcy procedure. See Fed.R.Bankr.P. 1007.
The record reflects that the Debtor commenced her bankruptcy case nearly 3 months ago. Her filing was a "bare bones" filing with no schedules of assets and liabilities, no statement of financial affairs, and no chapter 13 repayment plan having been filed. There may be other documents that have not been filed, but the preceding list describes the essence of the Court's observation. That is, the Debtor really has not filed anything that she is required to do pursuant to both Fed.R.Bankr.P. 1007 and applicable statutes mandating that the Debtor file such papers. See 11 U.S.C. §§ 521 and 1321.
The net effect of the Debtor's failure to adhere to her duties is that to date no meeting of creditor's has occurred despite one being required by 11 U.S.C. § 341. The consequence of this failure is that the Chapter 13 Trustee and creditors have been deprived of the opportunity to examine the Debtor under oath. In addition, creditors and the Chapter 13 Trustee have been deprived of an opportunity to examine the Debtor's assets and liabilities in order to determine whether this case has been filed in good faith and whether creditors will receive any meaningful distribution. Furthermore, inasmuch as no Chapter 13 plan has been filed, no payments have been tendered to the Chapter 13 Trustee and a fortiori is that creditors have received nothing in this case to date.
This record reflects that this case has been prosecuted in a "one sided" manner. That is, it appears that the Debtor merely filed this case for the sole purpose of invoking the automatic stay, which is a statutory injunction set forth in 11 U.S.C. § 362(a), which keeps creditors from pursuing collection remedies against the Debtor. At the same time, despite the enormous benefit of bankruptcy, the Debtor is not adhering to her countervailing obligations under applicable statutes and rules. The Debtor's failure to adhere to statutory duties now causes the Court to issue this Memorandum Order.
It is true that some debtor's need time to get his or her papers and things in order. Certainly affording a debtor time to do so is consistent with the "breathing spell" afforded by bankruptcy. However, this case appears on its face to be a garden variety Chapter 13, and more than 3 months to file papers required by the law seems to be enough time to do so.
Fed.R.Bankr.P. 1007(a)(5) provides that a debtor may be awarded additional time to file documents for "cause shown." As set forth above, the Debtor has been awarded 6 extensions of time already to file documents which are mandated by law. An examination of the Motion to Extend Time to Comply reveals that it gives nary a reason for such extensive delays, and on its face alleges no real "cause" supporting the requested extension. All that the motion alleges is that the Debtor "has not had sufficient time" to do what she is required to do by law.
This record indicates that the Motion to Extend Time to Comply should be denied for failure to allege "cause shown." Moreover, 11 U.S.C. § 1307(c) of the Bankruptcy Code provides that a bankruptcy case may be dismissed "for cause," which includes "unreasonable delay by the debtor that is prejudicial to creditors," the "failure to file a plan timely," and the "failure to commence making timely payments."
The record sub judice appears to support dismissal of the case pursuant to 11 U.S.C. § 1307 as the aforementioned examples of cause seem to be present. See In re Thompson, 557 B.R. 856 (Bankr. W.D. Pa. 2016) (requested extension denied, and bankruptcy case dismissed where debtor had filed and obtained 3 requested extensions and had prior cases where documents were not timely filed).
The Court recognizes that In re Thompson, supra., involved only 3 requested extensions for time, but also involved multiple prior cases that were incomplete. In some instances, this distinction can be material. In the matter now before the Court, the Debtor is making her 7
Accordingly, it is hereby ORDERED, ADJUDGED and DECREED that:
1. The Motion to Extend Time to Comply is denied; and
2. A Rule To Show Cause Haring is scheduled for March 6, 2020, starting at 11:00 a.m. in Courtroom B, U.S. Bankruptcy Court, 1st Floor, Penn Traffic Building, 319 Washington Street, Johstown, PA 15901. At the Rule To Show Cause Hearing the Court shall hear arguments on what the appropriate sanctions should be as a result of the Debtor's failure to comply with her duties as a debtor in bankruptcy. Sanctions considered by the Court shall include whether this case should be dismissed with prejudice as a filing "not in good faith" with a 180 day bar an any future filings post-dismissal.
3. To the extent the Debtor has an absolute defense to the Rule to Show Cause (that is that the Debtor can demonstrate extenuating circumstances exists and that the Debtor can confirm and complete a plan within a reasonable period of time), the Court will hear the defense and consider the request for more time on a de novo basis.
4. The Debtor shall file an answer to the Rule to Show Cause by no later than February 28, 2020, which sets for th her defense(s) to the Rule. Failure to timely file an answer to the Rule to Show Cause shall be deemed an admission that this case has not been filed in good faith, and that dismissal with prejudice (with a 180 day bar on future bankruptcy filings) is appropriate under the circumstances.
5. If no answer to the Rule to Show Cause is timely filed, a "with prejudice" dismissal order shall be entered by the Court without further notice and/or hearing and the Rule to Show Cause Hearing shall be cancelled.
th seventh request for more time to file documents but without averring any meritorious excuse warranting a finding of just cause. It is for this reason (i.e., the multiple extensions plus no averred cause) that the Court has issued the Rule.