Riverside considering 706(b) motion to convert to
Posted: Sun Oct 18, 2015 1:23 pm
Could a chapter 11 plan ever be confirmed anyway? Would you have the vote
from an impaired class? Would the Debtor be able to pay the taxes with
statutory interest within 60 months from the date of the filing of the
petition? I think you need someone like me to look at the facts and
explain how an 11 would be for naught. Of course, I've also made the
unconstitutionality argument before, but prevailed based on a different
section and on practical grounds.
On Sun, Oct 18, 2015 at 12:46 PM, 'Mark J. Markus' bklawr@yahoo.com
[cdcbaa] wrote:
>
>
> Steve,
>
> They've been threatening this for years, and I think in other parts of the
> country it has been attempted.
>
> It is unconstitutional.
>
> If they file the Motion, I would strongly urge you to get NACBA involved
> to assist in preparing oppositions (and make sure you make a proper record)
> and if somehow the court grants the motion, you need to get them involved
> in an appeal. This needs to be squashed, and squashed hard at the outset.
> --
>
> *************************
> Mark J. Markus
> Law Office of Mark J. Markus
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>
>
>
> On 10/16/2015 5:56 PM, 'Steven B. Lever' sblever@leverlaw.com [cdcbaa]
> wrote:
>
> I thought this community of bankruptcy scholars may be interested in this
> possible scenario I could be dealing with.
>
>
>
> I filed a Chapter 7 in Riverside and its mostly all tax debt. So 11
> U.S.C. 707(b) does not apply. Debtors earn $20,000 gross per year.
> They wouldnt pass the means test if they had to take it.
>
>
>
> UST asks why with the large income they dont convert to Chapter 13. I
> explain as per above they dont have to.
>
>
>
> They do discovery requests and I ask if they reject my 11 U.S.C. 707(b)
> analysis as this is not a consumer case which is a requirement under 11
> U.S.C. 707(b) motion.
>
>
>
> Turns out they agree with my analysis under 707(b), but are considering an
> 11 U.S.C. 706(b) motion to convert to Chapter 11, which can be brought by
> any party in interest. That is opposed to an 11 U.S.C. 706(a) conversion to
> Chapter 13 which can only be brought by the Debtor.
>
>
>
> Frankly, I never thought of that or ever heard of that tactic.
>
>
>
> Im mostly mentioning this scenario because it expanded my horizons on the
> use of the Bankruptcy Code.
>
>
>
> It seems odd to me that Debtors who would qualify for Chapter 13 (they do)
> and could not be forced into a 13 could be forced into an 11. WJ is the
> judge so that is a consideration, but it seems like an end run around the
> abuse standards in the Code.
>
>
>
> If anyone wants to comment on or off list Id be interested in any
> comments, but this is really posted as something that may be of interest.
> I presume no one has actually litigated this, but if you have Id
> definitely like to hear from you.
>
>
>
> Thank you.
>
>
>
> Steve
>
>
>
>
>
> Law Offices of Steven B. Lever
>
>
>
> Steven B. Lever
>
> ( Tel. (562) 436-5456 ext. 1
>
> ( Fax (562) 485-6886
>
> * sblever@leverlaw.com
>
> www.leverlaw.com
>
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> --
>
> *************************
> Mark J. Markus
> Law Office of Mark J. Markus
> *Mailing Address Only:*
> 11684 Ventura Blvd. PMB #403
> Studio City, CA 91604-2652
> (818)509-1173 (818)332-1180 (fax)
> web: http://www.bklaw.com/
> Certified Bankruptcy Law Specialist--The State Bar of California Board of
> Legal Specialization
> This Firm is a Qualified Federal Debt Relief Agency
> ________________________________________________
> NOTICE: This Electronic Message contains information from the law office
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Could a chapter 11 plan ever be confirmed anyway? Would you have the vote from an impaired class? Would the Debtor be able to pay the taxes with statutory interest within 60 months from the date of the filing of the petition? I think you need someone like me to look at the facts and explain how an 11 would be for naught. Of course, I've also made the unconstitutionality argument before, but prevailed based on a different section and on practical grounds.On Sun, Oct 18, 2015 at 12:46 PM,
The post was migrated from Yahoo.