Paula J Hufstetler

UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF NORTH CAROLINA
ELIZABETH CITY DIVISION
IN RE:
PAULA J. HUFSTETLER,
DEBTOR. 	CASE NO. 07-04115-8-JRL
CHAPTER 7
____________________________________________________________________________
ORDER
This case is before the court on the motion for credit counseling exemption filed by the
debtor on November 2, 2007. On November 16, 2007, the debtor filed a motion to continue the
hearing due to the debtor’s inability to attend the hearing and a conflict with the debtor’s
attorney. For the reasons set forth below, the court grants the debtor’s motion for credit
counseling exemption without a hearing.
The debtor filed a Chapter 7 petition on November 1, 2007. At that time, the debtor did
not file a certificate of credit counseling, but filed a motion for credit counseling exemption
based on the debtor’s incapacity and disability. 11 U.S.C. § 109(h)(1) provides that:
an individual may not be a debtor under this title unless such individual has,
during the 180-day period preceding the date of filing of the petition by such
individual, received from an approved nonprofit budget and credit counseling
agency described in section 111(a) an individual or group briefing (including a
briefing conducted by telephone or on the Internet) that outlined the opportunities
for available credit counseling and assisted such individual in performing a
SO ORDERED.
SIGNED this 27 day of November, 2007.
________________________________________
J. Rich Leonard
United States Bankruptcy Judge
____________________________________________________________
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related budget analysis.
However, this provision does not apply “to any debtor whom the court determines . . . is unable
to complete those requirements because of incapacity or disability. Id. § 109(h)(4). For
purposes of this section, incapacity means that “the debtor is impaired by reason of mental
illness or mental deficiency so that he is incapable of realizing and making rational decisions
with respect to his financial responsibilities.” Id. Disability means “that the debtor is so
physically impaired as to be unable, after reasonable effort, to participate in an in person,
telephone, or Internet briefing.” Id.
The record clearly shows that the debtor is incapacitated and disabled. On March 17,
2007, the debtor was admitted to Beaufort County Hospital for depression, agitation, and
paranoid ideas. The debtor is delusional and suffers from personality and mood disorders. Her
medical records indicate that she has a history of psychiatric illness following the death of her
husband from cancer five years ago. The debtor is on a regiment of anti-psychotic medications
and under the supervision of social services. The debtor has been declared incompetent and is
unable to drive. In order to attend credit counseling or a hearing on this matter, the debtor’s
guardian would have to make arrangements and expenditures to transport the debtor.
Based on the record, the court ALLOWS the debtor’s motion for exemption from the pre-
bankruptcy credit counseling requirement. The court finds that the debtor is incapacitated and
disabled as defined in 11 U.S.C. §. 109(h)(4). The debtor is therefore exempt from the pre-
bankruptcy credit counseling requirement of 11 U.S.C. § 109(h)(1).
“END OF DOCUMENT”
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