Our bankruptcy team, led by David Stevens, Esq., Diana M. Woody, and Monica Sanchez, successfully secured a favorable written opinion from the Bankruptcy Court, defeating a motion to dismiss our client's Chapter 7 bankruptcy case. This important decision marks a significant win for our financially struggling client, standing against an aggressive motion filed by a former landlord.
Case Overview:
The former landlord sought to dismiss our client's bankruptcy case or convert it to Chapter 13, alleging bad faith and misrepresentation of our client's financial situation. The landlord argued that our client was not genuinely seeking bankruptcy protection but instead attempting to avoid paying debts.
Debtor's Defense:
Our client, a utility worker facing financial hardships exacerbated by COVID-19, mounting legal bills, and ongoing expenses related to a custody dispute, sought bankruptcy relief out of necessity. His inability to pay the landlord’s claim was not due to bad faith but rather due to overwhelming financial pressures.
Court’s Decision:
After a thorough hearing, the Bankruptcy Court issued a well-reasoned written decision, rejecting the landlord’s motion to dismiss under § 707(a). The court found that our client had not acted in bad faith and denied the motion in its entirety.
This ruling is a testament to the dedication and strategic expertise of our bankruptcy team, who worked tirelessly to protect our client’s rights and financial future. We are proud to have secured this outcome for a deserving client facing difficult circumstances.