In Re Sivertsen

N.D. Illinois

In Re Sivertsen

180 B.R. 513, 1994 Bankr. LEXIS 2067, 75 A.F.T.R.2d (RIA) 857, 1994 WL 792402

CourtUnited States Bankruptcy Court, N.D. Illinois

DecidedDecember 27, 1994

Docket05-25498

StatusPublished

Cited by4 cases

This text of 180 B.R. 513 (In Re Sivertsen) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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In Re Sivertsen, 180 B.R. 513, 1994 Bankr. LEXIS 2067, 75 A.F.T.R.2d (RIA) 857, 1994 WL 792402 (Ill. 1994).

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Opinion

MEMORANDUM OPINION AND ORDER

RICHARD N. DeGUNTHER, Bankruptcy Judge.

This matter comes before the Court on the Motion of the Chapter 13 Trustee, James E. Kohlhorst, to Dismiss the above-captioned Chapter 13 case, pursuant to the provisions of Bankruptcy Code Section 109(e). The Trustee is represented by Attorney Mary P. Gorman. The Debtors are represented by Attorney Harvey A. Meyers. The IRS (U.S.A.) is represented by Attorney Samuel D. Brooks.

The question is whether the Debtors have unsecured, noncontingent, liquidated debts in excess of $100,000.00. In answering thé question, the Court and the parties need not engage in a full-fledged trial. Rather, the Court must render its judgment based on a review of the pleadings and documents on file, as well as the arguments of counsel. What is called for is a well-informed ready determination. In re Harbaugh, 153 B.R. 54 (Bankr.D.Idaho 1993).

The IRS has filed a Proof of Claim in the amount of $760,547.62. If the Proof of Claim is correct, it fulfills the three requirements of Section 109(e) in that the debt is unsecured, noncontingent, and liquidated.

The Debtors dispute the debt and have filed an Objection to the Proof of Claim. A disputed debt, however, is not excluded from computation under Section 109(e). In re Harbaugh, 153 B.R. 54, and In re Jerome, *514 112 B.R. 563 (Bankr.S.D.N.Y.1990). (Compare Section 303(b)(1).)

The Court has reviewed the IRS Proof of Claim, and the methods utilized by the IRS to determine the correct amount of the claim. The fact that the Debtors failed to pay taxes for several years does not render the task of computation an easy one. At times estimates may have to suffice. Nevertheless, the process utilized by the IRS appears to be sound, was performed in good faith, and must be respected. It is noteworthy that even if the indebtedness to the IRS is $650,-000.00 less than claimed, the Debtors remain ineligible under Section 109(e).

For these reasons, the Motion of the Chapter 13 Trustee to Dismiss the above-captioned case should be granted.

IT IS SO ORDERED.

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MEMORANDUM OPINION AND ORDER

RICHARD N. DeGUNTHER, Bankruptcy Judge.

This matter comes before the Court on the Motion of the Chapter 13 Trustee, James E. Kohlhorst, to Dismiss the above-captioned Chapter 13 case, pursuant to the provisions of Bankruptcy Code Section 109(e). The Trustee is represented by Attorney Mary P. Gorman. The Debtors are represented by Attorney Harvey A. Meyers. The IRS (U.S.A.) is represented by Attorney Samuel D. Brooks.

The question is whether the Debtors have unsecured, noncontingent, liquidated debts in excess of $100,000.00. In answering thé question, the Court and the parties need not engage in a full-fledged trial. Rather, the Court must render its judgment based on a review of the pleadings and documents on file, as well as the arguments of counsel. What is called for is a well-informed ready determination. In re Harbaugh, 153 B.R. 54 (Bankr.D.Idaho 1993).

The IRS has filed a Proof of Claim in the amount of $760,547.62. If the Proof of Claim is correct, it fulfills the three requirements of Section 109(e) in that the debt is unsecured, noncontingent, and liquidated.

The Debtors dispute the debt and have filed an Objection to the Proof of Claim. A disputed debt, however, is not excluded from computation under Section 109(e). In re Harbaugh, 153 B.R. 54, and In re Jerome, *514 112 B.R. 563 (Bankr.S.D.N.Y.1990). (Compare Section 303(b)(1).)

The Court has reviewed the IRS Proof of Claim, and the methods utilized by the IRS to determine the correct amount of the claim. The fact that the Debtors failed to pay taxes for several years does not render the task of computation an easy one. At times estimates may have to suffice. Nevertheless, the process utilized by the IRS appears to be sound, was performed in good faith, and must be respected. It is noteworthy that even if the indebtedness to the IRS is $650,-000.00 less than claimed, the Debtors remain ineligible under Section 109(e).

For these reasons, the Motion of the Chapter 13 Trustee to Dismiss the above-captioned case should be granted.

IT IS SO ORDERED.

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180 B.R. 513, 1994 Bankr. LEXIS 2067, 75 A.F.T.R.2d (RIA) 857, 1994 WL 792402, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-sivertsen-ilnb-1994.

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