Banned from filing bankruptcy in Massachusetts?

Could you be banned from even filing a bankruptcy case in Massachusetts?

Indeed you could be, and a married couple whose Chapter 13 case was before bankruptcy judge Melvin Hoffman recently was. The case is In re Durham.

At issue was section 109 (g) (2) of the bankruptcy code, which prohibits a debtor from filing a case if he or she has had a previous case dismissed within the past six months AFTER a creditor has moved for relief from the automatic stay.

According to a strict reading of the bankruptcy code, such a debtor cannot even be allowed to refile, at least until 180 days has gone by since the initial filing.

In his opinion, Judge Hoffman let it be known that in his courtroom he does require that the reason for the dismissal of the first case must be at least somewhat related to the creditor’s motion to lift the automatic stay.

If it is, consider yourself BANNED, and out of bankruptcy court for at least six months.

 

By Doug Beaton

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