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New Ruling: Standiferd v. US Trustee Converting 13 to 7

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    New Ruling: Standiferd v. US Trustee Converting 13 to 7

    Standiferd v. US Trustee (In re Standiferd)




    Summarized by Kevin Moore, St. John's University:

    10th Circuit

    Citation: 09-2238 (10th Circuit)


    Ruling:


    (1) A chapter 13 confirmation order is a "lawful order of the court" for the purposes of section 727(a)(6)(A), which grants the court the power to dismiss a Chapter 7 petition if a debtor refuses to obey a lawful order. (2) A debtor's pre-conversion misconduct (that is, misconduct while the chapter 13 case is pending) may support the denial of a discharge under section 727(a)(6)(A). Since conversion of the case from chapters 13 to 7 does not affect the case commencement date, see section 348(a), "discharge may be denied under 727(a)(6)(A) based on the debtor's refusal to obey a lawful order of the court while the case was proceeding under chapter 13."


    Procedural Context:


    After the Standiferds converted their case from chapter 13 to chapter 7 under Section 1307(a), the bankruptcy court issued an order denying them discharge under 727(a)(2)(B) and (a)(6)(A). The district court affirmed, and the Standiferds appealed to the Court of Appeals.


    Facts:


    Appellants Ronald and Betty Standiferd filed a chapter 13 bankruptcy petition, obtained confirmation of their plan, and then willfully and repeatedly violated the provisions of the confirmation order, which required them to keep the trustee apprised of their tax return statuses and monthly operating reports if they ever operated their own businesses. The Standiferds flagrantly violated these requirements for years; this is undisputed. When the trustee filed a second motion to dismiss (the first was several years previous and was denied), the Standiferds voluntarily converted their case to chapter 7. The trustee then filed a complaint seeking denial of discharge under sections 727(a)(2)(B) and (a)(6)(A), which the bankruptcy court granted.

    the entire pdf is located at this link: http://volo.abi.org/cases/standiferd...-re-standiferd

    or: http://courtlistener.com/ca10/26Lr/s...tates-trustee/

    pretty interesting!
    8/4/2008 MAKE SURE AND VISIT Tobee's Blogs! http://www.bkforum.com/blog.php?32727-tobee43 and all are welcome to bk forum's Florida State Questions and Answers on BK http://www.bkforum.com/group.php?groupid=9

    #2
    Great link tobee. Thanks.
    All information contained in this post is for informational and amusement purposes only.
    Bankruptcy is a process, not an event.......

    Comment


      #3
      welcome! should make for some interesting cases to follow.
      8/4/2008 MAKE SURE AND VISIT Tobee's Blogs! http://www.bkforum.com/blog.php?32727-tobee43 and all are welcome to bk forum's Florida State Questions and Answers on BK http://www.bkforum.com/group.php?groupid=9

      Comment


        #4
        I'm sorry but doesn't this ruling basically say that if you violate a BK court order, the court can deny discharge? I thought that was common knowledge.

        Comment


          #5
          Originally posted by JackBondLove View Post
          I'm sorry but doesn't this ruling basically say that if you violate a BK court order, the court can deny discharge? I thought that was common knowledge.
          What I think is the point that the Stanfords blatantly abused the terms of the 13 and then attempted 7 to obfuscate their responsibilities of the 13.
          If I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.

          Comment


            #6
            yes hub, i do believe that the case, additionally, this paved the way for a clearer ruling for those faced with the same situation in the future.
            8/4/2008 MAKE SURE AND VISIT Tobee's Blogs! http://www.bkforum.com/blog.php?32727-tobee43 and all are welcome to bk forum's Florida State Questions and Answers on BK http://www.bkforum.com/group.php?groupid=9

            Comment

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