Darrel S Chapman and Lynn Craley Chapman

UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF NORTH CAROLINA
WILSON DIVISION
IN RE:
DARREL S. CHAPMAN
LYNN CRALEY CHAPMAN
DEBTORS
CASE NO.
08-01230-8-RDD
ORDER CONDITIONALLY ALLOWING IMPOSITION OF THE AUTOMATIC STAY
AND DENYING MOTION CONFIRMING STAY IS NOT IN EFFECT
This matter is before the court on the debtor’s motion to impose the automatic stay pursuant
to 11 U.S.C. § 362(c)(4)(B). A hearing was held in Greenville, North Carolina on March 26, 2008.
Counsel for the debtor represented that all interested parties had been served with the motion. In
response 	to 	the 	debtor’s 	motion, 	DaimlerChrysler 	Financial 	Services 	Americas, 	LLC
(“DaimlerChrysler”) filed a motion requesting confirmation that the automatic stay was not in effect.
The debtors filed a petition for relief pursuant to chapter 13 of the Bankruptcy Code on
February 26, 2008. The debtors had two cases pending within the year prior to the filing of this
action. Case No. 06-04195-8-RDD was filed on December 22, 2006 and dismissed on August 10,
2007. Case No. 07-03333-8-RDD was filed on September 11, 2007 and dismissed on January 16,
2008. DaimlerChrysler has a security interest in a 2002 Dodge Ram truck owned by the debtors.
SO ORDERED.
SIGNED this 27 day of March, 2008.
________________________________________
Randy D. Doub
United States Bankruptcy Judge
____________________________________________________________
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Counsel for DaimlerChrysler indicates that the debtors are currently in default to DaimlerChrysler
in the amount of approximately $8,200.00. 	He further explained that DaimlerChrysler has not
received any payments on the truck since March 23, 2007.
The debtors' current filing is subject to the presumption that it was not filed in good faith as
provided in 11 U.S.C. § 362(c)(4)(D), but the debtors have demonstrated that the filing of the later
case is in good faith as to the creditors to be stayed, and have provided clear and convincing
evidence sufficient to rebut the presumption that the case was not filed in good faith. At the hearing,
Mrs. Chapman testified that the debtors’ first two cases were dismissed because of her husband’s
unemployment. Although Mrs. Chapman testified that her husband lost one job during the pendency
of their first bankruptcy case, Schedule I filed in that case indicates that both debtors were
unemployed at the time of filing. Mrs. Chapman testified that her husband became re-employed in
July 2007 with Pro Cycle, earning approximately $350.00 per week. However, her husband was
employed with Pro Cycle only three months before losing that job. 	Her husband became re-
employed again on February 25, 2008 as a truck driver with Werner Enterprises, Inc.. 	He is
currently earning approximately $350.00 per week, but his income will increase to approximately
$700.00 per week upon the completion of his training. Mrs. Chapman testified that she has been
employed by Goshen Medical Center for approximately one year, and brings home approximately
$1893.00 per month. 	She indicated that she began working five to six hours of overtime
approximately two months ago, so she is now bringing home approximately $1149.00 bi-weekly.
Mrs. Chapman further testified that the debtors have a foreclosure hearing is scheduled for April 3,
2008, which was continued from an earlier date after the debtors filed bankruptcy. Mrs. Chapman
testified that she has made her first bankruptcy payment in the amount of $100.00 and that her
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remaining 56 payments would be in the amount of $560.00 per month. 	Mrs. Chapman further
testified that it is her desire to have the debtors’ plan payments deducted from her wages at Goshen
Medical Center.
Upon questioning by counsel for DaimlerChrysler, Mrs. Chapman explained that the 2002
Dodge Ram truck is the debtors’ only means of transportation at this time, other than a borrowed
vehicle which Mrs. Chapman uses for her transportation to work. Mrs. Chapman explained that the
debtors own two other vehicles, a car and a motorcycle, both of which are inoperable. Mr. Chapman
drives the Dodge truck to and from Atlanta, Georgia, where he is currently training for his new job.
Mrs. Chapman admitted that the debtors’ income appeared to be identical in their current Schedule
I and the Schedule I filed in their most recent prior case, even though Mrs. Chapman’s income had
appeared to increase as a result of her working overtime. Mrs. Chapman further admitted that the
debtors had not made a direct payment to DaimlerChrysler on the Dodge truck since the filing of
their first bankruptcy on December 22, 2006.
Upon questioning by the court, Mrs. Chapman indicated that she believed the payoff on the
Dodge truck to be approximately $11,000.00. She also indicated that, when the debtors tried to trade
in the Dodge truck on another vehicle, the most they were offered for the truck was $4,500.00. The
trustee indicated that the payoff on the vehicle appeared to be $12,910.00 from the proof of claim
filed by DaimlerChrysler in this case. The trustee also indicated that the debtors were proposing to
treat the claim of DaimlerChrysler as secured in the amount of $9,575.00 and unsecured for the
remainder of the claim.
Based on the foregoing, the court finds that there has been a substantial change in the
debtors’ financial or personal affairs since the dismissal of the prior case. In the present case, both
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debtors appear to have stable employment. Mr. Chapman has potential for significant advancement
as a long-haul truck driver. Payments will be made by payroll deduction. The previous two cases
were hampered by the male debtor’s unemployment. Therefore, the motion to impose the automatic
stay is ALLOWED and the motion to confirm that the automatic stay is not in effect is DENIED,
upon the following conditions:
1. 	The debtors are to amend their Schedules I and J to accurately reflect their current income
and expenses within ten days of the entry of this order.
2. 	DaimlerChrysler’s claim in this case shall be treated as fully secured in the claimed amount
of $12,910.00 and paid in full at the Till rate of interest over the first 36 months of the
debtors’ plan.
3. 	Counsel for DaimlerChrysler is awarded attorney fees in the amount of $500.00, which shall
be added to the claim of DaimlerChrysler and paid through the debtors’ chapter 13 plan.
4. 	The trustee is to begin making adequate protection payments to DaimlerChrysler beginning
on April 15, 2008 and continuing until the confirmation of the debtors’ plan.
5. 	The debtors are to make all payments to the trustee within 20 days of their due date, being
the first day of each month beginning April 1, 2008, and each month thereafter for 24 months
from the date of this order. If the debtors fail to make a payment within 20 days of its due
date during that 24 months, the automatic stay shall lift without further hearing as to
DaimlerChrysler, and the debtors shall immediately surrender the 2002 Dodge Ram truck
to DaimlerChrysler.
6. 	The debtors are to maintain property and casualty insurance on the 2002 Dodge Ram truck
until DaimlerChrysler’s claim has been paid in full. If the debtors’ fail to maintain insurance
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on the vehicle at any time during the first 36 months of their plan, then the automatic stay
as to DaimlerChrysler shall lift without further hearing, and the debtors shall immediately
surrender the 2002 Dodge Ram truck to DaimlerChrysler.
7. 	If the debtors’ case is dismissed for any reason during the first 36 months of the debtors’
plan, 	the 	debtors 	shall 	immediately 	surrender 	the 	2002 	Dodge 	Ram 	truck 	to
DaimlerChrysler, and the debtors shall be barred from filing another bankruptcy case under
any chapter in the United States Bankruptcy Court for the Eastern District of North Carolina
for a period of 180 days from the date of entry of the order of dismissal.
Subject to the conditions listed above, pursuant to 11 U.S.C. § 362(c)(4)(B), the stay
contained in 11 U.S.C. § 362(a) shall be in effect throughout the pendency of the debtors' chapter
13 case as to all creditors, unless otherwise ordered or terminated by operation of a separate
statutory provision (e.g., § 362(h)) or by operation of this order, upon the condition that the debtors
submit to the payroll deduction of their plan payments.
SO ORDERED.
END OF DOCUMENT
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