By Lawrence R. Ahern III, Brown & Ahern (Nashville, TN) Introduction In In re Dao,1 Bankruptcy Judge Christopher Klein on May 11 ruled on an issue on which the circuits are split and certiorari is pending.2 Judge Klein agreed with the majority view that, under paragraph 362(c)(3) of the Bankruptcy Code, the automatic stay terminated 30 days after the order...
From the Editor – Dismissal and Conversion
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By The Honorable William Houston Brown (Retired)
Attorney-fee case in bad faith. The Eleventh Circuit held that the bankruptcy court did not clearly err in dismissing a Chapter 13 case filed for the purpose of paying attorney fees by installment. The bankruptcy court found that the debtor clearly would be better served by a Chapter 7 case and discharge. The debtor scheduled $16,000 in unsecured claims, but only three creditors filed claims, totally $1,355. The plan proposed to pay administrative claims, including $2,000 attorney fees, over a seventeen month period. Acknowledging that . . .
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