Pro Se Hall of Fame / Shame - Cautionary tales and wisdom nuggets from case research

[bornfree2]

Disclaimer: This is not legal or financial advice and this information/thread is for educational and entertainment purposes only. I am researching and these are my thoughts and opinions only. Always consult qualified experts for legal or financial advice before taking any action. I am not a lawyer.

GET A GOOD LAWYER BECAUSE THIS STUFF IS COMPLEX!

In this thread I will highlight case research that may prove instructive to the Pro Se.

By learning from mistakes and victories, the Pro Se can better prepare themselves.

To Mods: If this thread is inappropriate for this forum, feel free to delete it.

Where there is no guidance, the people fall, but in abundance of counselors there is victory. (Proverbs 11:14) He who walks with wise men will be wise, but the companion of fools will suffer harm. (Proverbs 13:20)

Sources and Methods:

Case files: Information contained in bankruptcy case documents are a matter of public record and viewing. They can be found on PACER for a fee. They can be found for free on RECAP - the great equalizer and gold mine of information for the Pro Se. Consider donating to keep this amazing public resource going.

Case law: Judges' opinions and rulings are also a matter of public record. One can learn a lot about relevant BK laws and procedures by studying what judges' have written on the matter. There are many free sources for BK case law - a good start is google scholar.

These two deep wells of free information provide the Pro Se with caution and wisdom. One can study RECAP to see how forms/petitions have been filed by lawyers. One can study the docket to see what procedural moves to make and expect by opponents . One can read case law and stand on the shoulder of giants.

re Privacy: Although bankruptcy filings are a matter of public record, one should make attempts to respect an individual's fundamental right privacy when discussing their case. Thusly, private individuals will be referred to as 'Debtor'. Cases are often referred to by name (ie Trump v xyz) - in those cases 'Debtor' will be substituted in. This will perhaps limit that person's name to exposure to SEO and crawlers. Yet despite best efforts, url links sometimes contain Debtor names. This is unavoidable

Always do your own research and seek qualified legal advice. This is not legal advice.

[bornfree2]

Disclaimer: These are opinions on research. I am not a lawyer. Always do your own research and seek qualified legal advice. This is not legal advice.

Head shot - No mercy shown by judge

In this case, Debtor files Chapter 13 in Pro Per. The initial docket entry shows a skeletal petition. Deficiencies are shown for rest of schedules due within 14 days.

Debtor misses deadline and files a motion to extend deadline. They declare their mother sudden health emergency took them out of town away from their financial documents. Debtor further declares they attempted to file electronically 1 day after deadline. They 'respectfully request and beg the court' to be granted an extension in light of these circumstance.

Judge denies motion:

On June 8, 2010, (“Debtor”) filed a Motion to Extend Time for
Submitting Incomplete Filings Pertaining to Chapter 13 Bankruptcy Petition (“Application”).
The assertions made in the Application were not supported by evidence and do not establish
cause for granting the Application. Based upon the foregoing, IT IS ORDERED that the
Application is DENIED

Court dismisses case. Debtor, presumably discouraged and defeated, does not show up for 341 meeting.

The above debtor(s) has FAILED TO APPEAR for examination at the initial Section 341(a) meeting of creditors and any continuance thereof:

It is ordered:

1) The case is dismissed.
2) The automatic stay is vacated.
3) Any discharge entered in this case is vacated.
4) The Court retains jurisdiction on all issues arising under Bankrupcty Code § 110, 329 and 362.
Pursuant to Bankruptcy Code Section 349, debtor is prohibited from filing any new bankruptcy petition.

In my non-legal opinion, the Judge should have show much more leniency and mercy and allow Debtor fix the defect in their motion by providing the required evidence - presumably like a doctor's note or mother and friends affidavit.

I do not know if the judge's 'hands are tied' to have ruled that way. I do know that in other cases i've come across lawyers get away with missing hearings for their clients typically using a generic 'calendering error' excuse. I have also seen debt collector's get away with filing 1000's of collection cases without one piece of evidence attached to their claims.

Edit: Stop the press! Found another case where Debtor's attorney submits a Motion to Extend Time to File, providing only a declaration of Debtor 'elevated blood pressure' and is stressed out. "Debtor’s declaration provides the good cause for granting the extension for the filings now due on July 6, 2010, and extending said filings to and including August 20, 2010."

No evidence submitted. Same result right? Nope. Motion granted.

Moral of this sad story:

All Debtors are equal but Debtors with attorney are more equal than others?

Prejudice against the Pro Se is a thing and absolute diligence is the best insurance policy. Pro Se are unjustly held to a much higher standard of performance and their ignorance and experience is used against them. This should not be the case at all if one is seeking protection from the bankruptcy court.

Edit 2: Want to see more? Just search 'Motion to Extend Time to File' or something similar on RECAP. I found an abundance of successful motions. I can also filter down to my particular court jurisdiction.

[bornfree2]

Do you have any Boobs to declare?

Here is a funny one I found on RECAP.

https://storage.courtlistener.com/recap/gov.uscourts.ohsb.810869/gov.uscourts.ohsb.810869.1.0.pdf

Page 5 of Schedule A/B Property: " Claims against third party"

Possible product liability claim for defective silicon breast implants

[bornfree2]

Chinese billionaire goes bankrupt

Found an interesting case on RECAP for a chinese billionaire that filed chapter 11 in Delaware. Sadly a member of the three comma club went belly up. 嘘

Check out the $1000/hr firm that represents him. And the crafty disclaimers attached to the schedule. Now this is a lawyer I wish I could afford!:

Its a long docket but very interesting to see

Schedule A/B, Part 11 - All Other Assets. The Debtor may have accrued, or may subsequently accrue, certain rights to counter-claims, cross-claims, setoffs, or refunds, or may assert in litigation claims as a plaintiff or counter-claims and/or cross-claims as a defendant. Because certain of these types of assets are unknown to the Debtor and not quantifiable as of the Petition Date, they may not be listed on Schedule A/B, Part 11.

Schedule D - Creditors Who Have Claims Secured by Property. The Debtor reserves his rights to dispute or challenge the validity, perfection, or immunity from avoidance of any lien purported to be granted or perfected in any specific asset to a secured creditor listed on Schedule D. Moreover, although the Debtor has scheduled claims of various creditors as secured claims, the Debtor reserves all rights to dispute or challenge the secured nature of any such creditor's claim or the characterization of the structure of any such transaction or any document or instrument related to such creditor's claim.

The descriptions provided in Schedule Dare intended only to be a summary. Reference to the applicable agreements and other related relevant documents is necessary for a complete description of the collateral and the nature, extent, and priority of any liens.

The Debtor has not included on Schedule D parties that may believe their claims are secured through setoff rights or inchoate statutory lien rights.

Schedule E/F - Creditors Who Have Unsecured Claims. The listing of a claim on Schedule E/F, Part 1, does not constitute an admission by the Debtor that such claim or any portion thereof is entitled to priority status. The liabilities identified in Schedule E/F, Part 2, are derived from the Debtor's books and records. The Debtor made a reasonable attempt to set forth his unsecured obligations, although the actual amount of claims against the Debtor may vary from those liabilities represented on Schedule E/F, Part 2. The listed liabilities may not reflect the correct amount of any unsecured creditor's allowed claims or the correct amount of all unsecured claims.

Schedule G - Executory Contracts and Unexpired Leases. While reasonable efforts have been made to ensure the accuracy of Schedule G, inadvertent errors or omissions may have occurred. Listing a contract or agreement on Schedule G does not constitute an admission that such contract or agreement is an executory contract or unexpired lease or that such contract or agreement was in effect on the Petition Date or is valid or enforceable. The Debtor hereby reserves all of his rights to dispute the validity, status, or enforceability of any contracts, agreements, or leases set forth in Schedule G and to amend or supplement such Schedule as necessary. Omission of a contract or agreement from Schedule G does not constitute an admission that such omitted contract or agreement is not an executory contract or unexpired lease.

[justbroke]

Chapter 11s are much different than anything "consumer" related (standard Chapter 7 or even a Chapter 13). In a Chapter 11, the debtor is usually a "debtor in possession" and is the Trustee, unless there are issues and the court appoints a third-party Trustee to oversee the case.

You just can't compare a Chapter 11 to anything else... and they can get very expensive.

Personally, I would not be reviewing a Chapter 11 if I'm a normal consumer. It's a waste of time. Maybe review some Chapter 13s if you think you're headed that way into a Reorganization.

[bornfree2]

Personally, I would not be reviewing a Chapter 11 if I'm a normal consumer. It's a waste of time. Maybe review some Chapter 13s if you think you're headed that way into a Reorganization.

You are right this area of bk is massively complex and messy. That disclaimer is interesting though. Whats claimed for the rich could be claimed by the poor.

[justbroke]

You are right this area of bk is massively complex and messy. That disclaimer is interesting though. Whats claimed for the rich could be claimed by the poor.

Chapter 11s can be entirely complex. Remember, everyone from the two-comma debtors to General Motors use a Chapter 11. They require substantial work and the attorneys charge a premium.

I almost got shoved into a Chapter 11 based on the 2008 debt limits for Chapter 13s. It is easy for a debtor that owns a few pieces of real-estate, to not fit into a Chapter 13.