In re Guerrero

540 B.R. 270, 2015 Bankr. LEXIS 3033, 2015 WL 5302644
CourtUnited States Bankruptcy Court, S.D. Texas
DecidedSeptember 9, 2015
DocketCASE NO: 15-70103
StatusPublished
Cited by9 cases

This text of 540 B.R. 270 (In re Guerrero) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Guerrero, 540 B.R. 270, 2015 Bankr. LEXIS 3033, 2015 WL 5302644 (Tex. 2015).

Opinion

MEMORANDUM OPINION DENYING DEBTORS’ MOTION TO RECONSIDER THIS COURT’S ORDER DISMISSING CASE WITH PREJUDICE

Eduardo V. Rodriguez, United States Bankruptcy Judge

Debtors urge this Court to reconsider its • order for the voluntary dismissal of Debtors’ Individual Chapter 11 case, where the order rendered prejudice against the Debtors from refiling under Title 11 for 180 days pursuant to 11 U.S.C. § 109(g). Specifically, Debtors contend that their voluntary dismissal here does not fall under the purview of § 109(g) and subsection (2), which together require a 180-day bar on refiling where the voluntary dismissal follows a filing of a request for relief from the automatic stay. Debtors argue that their request for dismissal had no causal connection to the fact that a creditor here had filed a motion for relief from the automatic stay, and thus the application of § 109(g) is improper. This Court shall now reconsider its Order dismissing Debtors’ case with prejudice. - To the extent that any of the following findings of fact constitute conclusions of law, they are adopted as such. ■ To the extent that any of the following conclusions of law constitute findings of fact, they are adopted as such.

Factual Background

1. Debtors Jesus and Alicia Guerrero filed for Chapter 13 bankruptcy protection on March 2, 2015. [ECF No. 1].

2. ■ On April 24, 2015, during the pen-dency of the Chapter 13 case, Lone Star National Bank filed a Motion for Relief from Stay under 11 U.S.C. § 362. [ECF No. 25].

3. On May 20, 2015 and June 2, 2015, respectively, this Court entered an order, [ECF No. 31], and amended order, [ECF [272]*272No. 39], on the Motion for Relief from Stay. The essential effect of this Court’s amended order was to impose conditions on the Debtors, failing which, the 'Stay would automatically terminate.

4. On May 22, 2015, the Chapter 13 Trustee filed an Amended Motion To Dismiss the Chapter 13 case, primarily because the Debtors exceeded the Chapter 13 debt limits pursuant to 11 U.S.C. § 109(e). [ECF No. 33].

5. On June 11, 2015, the Debtors filed their response to the Trustee’s Amended Motion to Dismiss, denying the Trustee’s allegations. [ECF No. 41].

6. On July 2, 2015, Lone Star National ' Bank filed its Notice of Termination of Stay as To Specific Property. [ECF No. 45].

7. On June 18', 2015, the Court heard arguments on the Trustee’s Amended Motion to Dismiss, which the Court took under advisement while resetting the dismissal hearing to July 23, 2015. [ECF No. 43].

8. On July 23, 2015, this Court ordered Debtors to cpnvert their case to Chapter 11 by July 24, 2015, or the case would be dismissed. [ECF No. 47].

9. On July 24, 2015, Debtors filed their Motion to Convert their case from Chapter 13 to Individual Chapter 11, [ECF No. 48], which this- Court granted. [ECF No. 49],

10. On July 27, 2015, Lone Star National Bank filed its second Notice of Termination of Stay. [ECF No. 53]. -

11. On August 4, 2015, Debtors filed an Emergency Motion to Dismiss their Chapter 11 case, [ECF No.-59], which was set for a hearing on August 10, 2015. [ECF No. 63].

12. On August 10, 2015, this Court conducted an evidentiary hearing wherein it cautioned Debtors’ counsel that, since the voluntary motion to dismiss was filed following the filing of a motion for relief from the automatic stay, the court would grant the dismissal with prejudice. Debtors offered no testimony at the hearing, and Debtors’ counsel did not object to the dismissal with prejudice. This Court granted Debtors’ voluntary request for dismissal, entering an order dismissing the Individual Chapter 11 case with prejudice against refiling as a debtor under Title 11 for 180 days, pursuant to 11 U.S.C. § 109(g). [ECF No. 69].

13. On August 12, 2015, Debtors filed a Motion to Reconsider the August 10, 2015 dismissal order, contending that Debtors’ case , does not fall under the requirements of a correct, in Debtors’ view, reading of 11 U.S.C. § 109(g). [ECF No. 70]. That Motion was amended on August 13, 2015. [ECF No. 72].

14. On August 28, 2015, the Court conducted an evidentiary hearing on Debtors’ First Amended Expedited Motion To Reconsider Dismissing Individual Chapter 11 Case Following The Filing of A Request For Relief From The Automatic Stay (“the Motion”). Although the Debtors were contending, inter alia, that the requested dismissal was not “the result of the stay relief motion,” [ECF No. 72, p. 8, ¶ 11], Debtors offered no evidence or testimony at this hearing. The Court was left to consider only the documents filed of record and legal arguments of counsel.

I. Analysis

This Court will now re-evaluate the basis for its entry of dismissal with prejudice in Debtors’ Individual Chapter 11 case.

A. Authority

This is a core proceeding for the purpose of 28 U.S.C. § 157 and a case that “arises under” title 11 for the purpose of 28 U.S.C. § 1334, because the construction [273]*273of 11 U.S.C. § 109(g), its application to this case, and the content of this Court’s original order all concern the final disposition of a bankruptcy proceeding and rights solely arising out of bankruptcy law. See In re Lopez, 2015 WL 1207012 (Bankr.S.D.Tex. Mar. 12, 2015); see also In re Poplar Run Five Ltd. Partn., 192 B.R. 848, 855 (Bankr.E.D.Va.1995). Additionally, this Court is empowered to reconsider and modify its orders pursuant to its own equitable powers, and more specifically pursuant to Fed. R. Bankr. P. 9024. Thus, this Court is empowered to reconsider its final order and issue final judgments on the matter.

B. Legal Analysis

Debtors’ potential relief of a dismissal with prejudice rests upon how 11 U.S.C. § 109(g)(2) must be construed. 11 U.S.C. § 109(g) states:

Notwithstanding any other provision of this section, no individual or family farmer may be a debtor under this title who has been a debtor in a case pending under this title at any time in the preceding 180 days if—
(1) the case was dismissed by the court for willful failure of the debtor to abide by orders of the court, or to appear before the court in proper prosecution of the case; or

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Cite This Page — Counsel Stack

Bluebook (online)
540 B.R. 270, 2015 Bankr. LEXIS 3033, 2015 WL 5302644, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-guerrero-txsb-2015.