Bankrupt Farm Debtors Can File Again.

The debtors filed Chapter 12 and had their reorganization plan confirmed, but defaulted on the payments they were required to pay under the plan.  Two creditors had the automatic stay lifted with respect to them and the debtors did not request and receive their voluntary dismissal such that the refilling limitations of 11 U.S.C. Sec. 109(g)(2) were never triggered.  Instead, the court determined that the filing by the creditors of affidavits of default that constituted the requests for relief.  But, before the affidavits were filed, the debtors filed for a voluntary dismissal.  The court granted the dismissal and lifted the stay.  When the debtors re-filed Chapter 12 about a month later, the creditors claimed that the debtors were not eligible because of the 11 U.S.C. Sec. 109(g)(2) bar (180-day limitation).  The court allowed the re-filed case because the debtors had filed their motion for voluntary dismissal before the creditor affidavits were filed.  Thus, 11 U.S.C. Sec. 109(g)(2) was never triggered.  In re Herremans, No. BG 15-01567, 2015 Bankr. LEXIS 2201 (Bankr. W.D. Mich. Jun. 23, 2015).

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