Warren R Fries

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF MARYLAND
at Greenbelt
IN RE: :
:
WARREN R. FRIES : Case No. 06-11424PM
: Chapter 13
Debtor :
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MEMORANDUM OF DECISION
This case came before the court on July 12, 2006, for hearing on Debtor’s First Amended
Chapter 13 Plan filed July 10, 2006. Objections to Debtor’s original Plan were filed on behalf of
Karina and Michael Poteshman, on behalf of Dance Unlimited, Inc., Donna Grim, and Charles
Smith, as well as by the Chapter 13 Trustee. As a result of the amendment that increases funding
of the Plan so as to provide for a 100% payment to unsecured creditors, the bulk of the Trustee’s
objection is now moot.
Because the claim of Dance Unlimited, Inc., is unliquidated, the court finds that this
Debtor is eligible to file a bankruptcy case under Chapter 13 in that his noncontingent liquidated
unsecured debts are less than $307,675.00. Further, because of the undertaking to pay unsecured
creditors in full, the court finds that the First Amended Plan is filed in good faith and finds
insufficient evidence in the record to support the finding that the petition was filed in bad faith.
However, the court finds from the undervaluations of the property, as evidenced by Debtor’s
report to the State of Maryland Department of Labor, Licensing and Regulation, the failure of the
Debtor to disclose a valuable item of personal property, and the inaccurate statements of cash
held in his bank account, as well as his failure to schedule an account receivable and to list all of
his creditors, that extraordinary measures must be taken to protect the unsecured creditors.
Date signed August 19, 2006
Entered: August 21, 2006 Case 06-11424 Doc 66 Filed 08/21/06 Page 1 of 2

The court will therefore condition the entry of the Order confirming Debtor’s Plan. The
condition is that Debtor must file an Addendum to the Chapter 13 Plan, under oath, that if all
liquidated claims are not paid in full by June 30, 2007, Debtor consents to the entry of an order
converting his case to a case under Chapter 7, without a further hearing, and Debtor irrevocably
waives the right to move to dismiss this bankruptcy case under Chapter 13 prior to August 1,
2007. This ruling is made upon the assumption that all claims will be liquidated prior to May 30,
2007. Any proceeds from the sale of real estate are to be held in escrow pending closure of the
case.
Should Debtor fail to file the Addendum to his Chapter 13 Plan, confirmation will be
denied without leave to amend.
cc:
Scott C. Borison, Esq., 3500 Buckeystown Pike, Frederick, MD 21703
Timothy P. Branigan, Esquire, P.O. Box 1902, Laurel MD 20725-1902
Alan D. Eisler, Esq., 11140 Rockville Pike, Suite 570, Rockville, MD 20852
Stephen K. Carper, Esq., One West Church Street, Frederick, MD 21701
Warren R. Fries, 306 W. Main Street, Middletown, MD 21769
End of Memorandum
Case 06-11424 Doc 66 Filed 08/21/06 Page 2 of 2