Serial FilerSeptember 28, 2016

Bankruptcy is a privilege and not a means for debtors to try to delay the fact that they cannot pay a debt.

Background

  • Debtor filed for Chapter 7 in July 2008 and received a discharge on April 3, 2009.
  • Debtor filed for Chapter 13 relief in December 2013, January 2014, April 2014 and November 2015.
  • None of the Chapter 13 cases lasted for more than a couple of months; debtor did not make the agreed upon payments.
  • All the Chapter 13 cases were dismissed.
  • Debtor filed again in January 2016.
  • Wells Fargo had a secured claim of the Debtor’s home of $879,256.
  • Debtor owed arrearages of $417,823.31
  • Monthly mortgage payment was $6,303.56 – $4,603.28 was for principal and interest.
  • Debtor had not made a single mortgage payment since 2010.
  • Debtor stated she needed more time to consult with an attorney.

Decision by Bankruptcy Court

  • Debtor was not sincere in her filings; all she wanted was to stay in her home for free and trying to work the system for injustice rather than justice.
  • Court dismissed the case without prejudice because Wells Fargo had a remedy in case the debtor decided yet again to file another Chapter 13 Plan.

Debtor must be sincere when they file a Plan to keep their home.   Serial filers are identified by the Court and stopped – justice must be served.