DAVID WEIK
14-61298
Bankr. D. Mont.Feb 24, 2015Background
- Debtor David Weik (pro se) filed Chapter 13 on November 13, 2014, to stop Midway RV & Self Storage from auctioning his stored personal property. He has multiple prior bankruptcy filings in Arizona, Montana, and Texas and no evidence of prior discharges.
- Midway held three storage units since 2012; Weik last paid January 2013 and owed $8,629.75 as of January 8, 2015. Midway repeatedly scheduled sales; Weik timed petitions to trigger the automatic stay. Midway offered to let him retrieve property if he did so by a deadline, which he did not meet.
- The Chapter 13 Trustee objected to plan confirmation and moved to dismiss with prejudice and bar refiling for two years on grounds including lack of good faith, serial filings/abuse, ineligibility under § 109(g)(1), untimely plan, and material omissions in schedules.
- Weik’s petition and schedules omitted multiple required disclosures: several prior bankruptcy cases, Midway as a creditor in this case, ownership interest in a corporation, and vehicles. He signed his petition and SOFA under penalty of perjury.
- Debtor’s Plan (filed December 1, 2014) proposed 28 months of graduated payments, listed only Verizon as a creditor, did not provide for Midway or Montana Department of Revenue priority tax claim, and was not served on Midway. Debtor admitted filing to stop sales and said he lacked time/computer access when he omitted prior cases.
- Court held an evidentiary hearing, found multiple misrepresentations/omissions and serial abusive filings, denied plan confirmation, and granted dismissal with prejudice plus a two‑year prohibition on refiling.
Issues
| Issue | Plaintiff's Argument (Trustee) | Defendant's Argument (Weik) | Held |
|---|---|---|---|
| Whether Plan should be confirmed under §1325 | Plan fails §1325: not in good faith, omits creditors/assets, fails to pay priority tax, not feasible | Pro se debtor tried to comply, lacked time/computer access; will obtain work/income | Denied — Debtor failed burden to prove §1325(a) elements; plan not in good faith |
| Whether case should be dismissed for cause under §1307(c) (including abuse) | Serial filings, omissions, manipulation of automatic stay, prejudice to creditor justify dismissal with prejudice | Filing timed to stop Midway sale; omissions were inadvertent or due to pro se status | Granted — dismissal with prejudice appropriate for cause and abuse of process |
| Whether §109(g)(1) ineligibility bars filing (prior dismissal within 180 days) | Prior case dismissed <180 days supports ineligibility | Debtor contends prior dismissal was for unpaid filing fee; unclear if that equals "failure to appear in proper prosecution" | Court did not decide §109(g)(1) issue because other grounds warranted dismissal |
| Whether dismissal should include bar on refiling and length | Trustee requested bar given pattern of repeat filings and prejudice | Debtor argued pro se status and intent to retrieve property; no evidence of bad faith intent to permanently evade creditors | Court imposed severe sanction: dismissal with prejudice and two‑year prohibition on refiling due to egregious, atypical conduct |
Key Cases Cited
- Barnes v. Barnes, 32 F.3d 405 (9th Cir. 1994) (debtor bears burden to prove all elements of plan confirmation)
- Leavitt v. Soto (In re Leavitt), 171 F.3d 1219 (9th Cir. 1999) (totality of circumstances test for good faith in Chapter 13)
- Rosson v. Fitzgerald (In re Rosson), 545 F.3d 764 (9th Cir. 2008) (standards for dismissal for cause and good faith review)
- Marrama v. Citizens Bank of Massachusetts, 549 U.S. 365 (2007) (debtor conduct must be atypical to deny relief; bad‑faith standard)
- Tomlin (In re Tomlin), 105 F.3d 933 (4th Cir. 1997) (dismissal with prejudice and bar to refiling is drastic sanction limited to extreme cases)
- Chinichian v. Campolongo, 784 F.2d 1440 (9th Cir. 1986) (confirmation requires compliance with chapter and applicable title provisions)
- Johnson v. Home State Bank, 501 U.S. 78 (1991) (broad definition of "claim" relevant to required schedule disclosures)
