666 B.R. 289
Bankr. M.D. Penn.2025Background
- Gregory Barrington Simon filed his sixth bankruptcy case since 2013, this time under Chapter 13, converted to Chapter 7.
- The U.S. Trustee (UST) moved to dismiss the case under 11 U.S.C. §707(a) and §707(b)(3), alleging bad faith and abuse due to serial filings and overstated expenses.
- Simon repeatedly filed for bankruptcy in an effort to delay foreclosure on his residence, accumulating significant mortgage arrears and defaults.
- Simon amended his schedules to significantly increase his reported expenses, many of which were found to be inaccurate or unsubstantiated.
- The mortgage lender obtained relief from the automatic stay, and Simon had no credible plan to repay debts or maintain mortgage payments.
- The UST sought a one-year bar to refiling, citing Simon's serial filings, failure to complete prior plans, and inaccurate schedules.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Simon's filing constituted abuse under §707(b)(3)(B) | Simon’s expenses are excessive; he has ability to pay under Chapter 13 | Admits inaccuracies, claims reasonable grounds for some expenses | Filing is abusive; expenses unreasonable; can pay via Chapter 13 |
| Whether filing was in bad faith under §707(a) | Serial filer; filings to delay foreclosure; inaccurate schedules | Filings aimed to save residence; efforts in good faith | Filing in bad faith; history and inaccuracies support dismissal |
| Appropriate duration of bar to refiling | One-year bar necessary due to pattern | No argument specific to duration | 180-day bar to refiling appropriate given circumstances |
| Credibility of amended schedules and reporting | Amended expenses are deliberately inflated | Nervous/confused, no intent to deceive | Expenses materially inaccurate; hurt credibility |
Key Cases Cited
- Ransom v. FIA Card Servs., N.A., 562 U.S. 61 (Expense standard for bankruptcy means testing)
- In re Tamecki, 229 F.3d 205 (Good faith is an implicit prerequisite in Chapter 7 filings)
- Society National Bank v. Barrett (In re Barrett), 964 F.2d 588 (Multiple filings may indicate bad faith under the totality of the circumstances)
- In re Kitchens, 702 F.2d 885 (Totality of circumstances for serial bankruptcy filings)
- In re Myers, 491 F.3d 120 (Factors for determining good faith in bankruptcy petitions)