Amish Buggy

An Amish investment advisor learned that it’s not as easy as saying, “I don’t want to do it any more” and get your Chapter 7 bankruptcy case dismissed.

Perhaps you have found yourself in a similar posture.

What if you’ve changed your mind?  The heat that caused you to make the decision to file bankruptcy is now diminished.  (Even the hottest fires abate over time.)

You call your bankruptcy attorney and say, “I want to reverse this thing.  Take me out of bankruptcy please.”

After discussing the decision, your bankruptcy attorney will have to advise you that if you filed a Chapter 7 case the there is no automatic dismissal.

You can request dismissal by filing a proper Motion to Dismiss.  All your creditors and the Chapter 7 Trustee have a right to be heard on your motion.

The court must consider whether dismissal of your case is in the “best interest of creditors.”

Monroe L. Beachy, an investment advisor in Ohio, asked the bankruptcy court to dismiss his voluntary Chapter 7 case.  The Times-Reporter has reported that Mr. Beachy has accepted the counsel of his Amish church and desires that his case be dismissed and liquidation of his assets proceed in accordance with the doctrines of the church.

Unfortunately, it appears that all claimants are not Amish (although 97% of the debt is owed to those claiming to be Amish).  Mr. Beachy’s Motion to Dismiss has drawn fire from the Securities and Exchange Commission who has filed an objection.  The Chapter 7 Trustee and the U.S. Trustee have likewise filed objections.

Most objections to dismissal are made asserting that the liquidation and payment process set forth in the bankruptcy code is orderly, predictable, and conducted with the backdrop of the Chapter 7 Trustee’s fiduciary obligation to the creditors.

It is on that basis that most Motions to Dismiss, if subject to Objections, are denied.

Certainly, it’s not reasonable to state what Judge Russ Kendig will rule, it is easy to predict that the most likely ruling is a denial of the Motion to Dismiss.  This would allow the case to proceed under normal Chapter 7 liquidation and distribution procedures.

In over 25 years representing consumer debtors in bankruptcy from Knoxville, Sevierville, Maryville and Jefferson City,  I think I’ve only filed one Motion to Dismiss a Chapter 7 case.  So it’s unusual, but it does happen.

Photo Credit:  Pulliarf at Flickr