Davis v. U.S. Bank

Debtor appealed from the Bankruptcy Appellate Panel's decision affirming the bankruptcy court's dismissal of her voluntary Chapter 12 petition. The court affirmed the dismissal of debtor's petition because her "aggregate debts" exceeded $3,792,650, the statutory limitation for Chapter 12 eligibility in effect at the time debtor filed her petition pursuant to 11 U.S.C. 101(18)(A). The court concluded that a creditor's claims remains a "debt" so long as it is enforceable against either the debtor or the debtor's property. Accordingly, the debtor's "aggregate debts" include the amount of that claim, even after a prior discharge from personal liability under Chapter 7. In this case, debtor's schedules lists claims totaling $4.1 million, which is above the cap for Chapter 12 eligibility in effect at the time of her petition. View "Davis v. U.S. Bank" on Justia Law