Slip Opinion
Bankr. W.D. Va.2024Background
- Ralph Leon Hayes filed his sixth voluntary Chapter 13 bankruptcy petition (fourth in 18 months), pro se, in the U.S. Bankruptcy Court for the Western District of Virginia.
- Hayes consistently failed to file required schedules, statements, a Chapter 13 plan, and pay the full filing fee in this or prior recent cases.
- His filings repeatedly centered on grievances against his mortgage servicer and holder, not on compliance with bankruptcy procedural requirements.
- Both the Chapter 13 trustee and the U.S. Trustee moved to dismiss with a 365-day bar on future filings and sought to condition future filings on payment of unpaid fees, alleging bad faith and abuse of process.
- Despite extensions and opportunities to cure deficiencies, Hayes did not comply; repeatedly seeking continuances rather than engaging in the required bankruptcy processes.
- The Court consolidated hearing on dismissal motions, ultimately addressing both procedural and substantive requirements for bankruptcy eligibility.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Failure to file required schedules/statements | Hayes claimed he could not file until mortgage voided | Trustees: Required by Code and Rules, no exception | Dismissal warranted—strict compliance mandated |
| Failure to file Ch. 13 plan | Hayes did not file, argued grievances with mortgage lender | Trustees: Fatal defect in bankruptcy process | Dismissal warranted |
| Failure to pay filing fee/installments | Hayes sought in forma pauperis or further extension | Trustees: Payment mandatory, in forma pauperis not permitted | Dismissal warranted—waiver unavailable in Ch. 13 |
| Dismissal with conditions (bar on re-filing) | Hayes did not refute serial filing, argued nonbankruptcy claims | Trustees: Sought 365-day bar and fee payment | 365-day bar appropriate for bad faith, but no fee precondition |
Key Cases Cited
- Colonial Auto Ctr. v. Tomlin (In re Tomlin), 105 F.3d 933 (4th Cir. 1997) (Bankruptcy courts have authority under § 109(g) to bar serial filers with prejudice)