Christina M Jaynes

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF MARYLAND
at Greenbelt
IN RE: 	:
:
CHRISTINA M. JAYNES 	: 	Case No. 06-18135PM
: 	Chapter 13
Debtor 	:
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - :
MEMORANDUM OF DECISION
This case comes before the court on the Debtor’s Motion for Authorization to Refinance
her residence, and the opposition of the Standing Chapter 13 Trustee thereto. This case presents
a successful effort by the Debtor and her non-filing spouse to take advantage of the bankruptcy
process to the detriment of her unsecured creditors without priority.
Debtor filed this bankruptcy case under Chapter 13 on December 14, 2006. The purpose
of the filing was to enable her to work out a Plan and dispose of $109,725.00 in unsecured
claims without priority. Of these claims, all were in her name alone, other than one scheduled
claim said to be held by Wachovia for a joint obligation as to which a claim was filed in the sum
of $19,148.36. Under the terms of Debtor’s Chapter 13 Plan confirmed by Order entered
February 23, 2007, Debtor is to pay monthly payments of $563.00 a month for a total of
$33,780.00. After payments of $2,000.00 administrative claims for her attorney’s fees, payment
of Wachovia in full, and a Trustee’s commission of approximately $2,350.00, a payment is to be
made of approximately 10% to the remaining unsecured creditors not holding joint claims.
At the time of filing of the case, Debtor and her non-debtor spouse were not behind in
their payments to any secured creditor. The result is that the Jaynes, who earned over
$160,000.00 in 2004 and 2005, will emerge from the bankruptcy process free of the unsecured
Date signed June 28, 2007
Entered: June 29, 2007 Case 06-18135 Doc 35 Filed 06/29/07 Page 1 of 2

debts owed by Mrs. Jaynes, and, after the refinancing, Mr. Jaynes’ credit cards will be paid off
with the proceeds of a loan secured by a Deed of Trust that requires monthly payments of
$1,014.00, a sum substantially less than the minimum payments due on the credit card debt owed
by Mr. Jaynes, and with nearly $350,000.00 in equity in their residence. Inasmuch as Mr. Jaynes
did not have to file a bankruptcy case to achieve this result, he retains the bankruptcy option
should the parties again run up $150,000.00 in credit card debt. Mr. Jaynes also retains his near
flawless credit rating. Future creditors would be well advised not to extend credit to either
Christina or Philip Jaynes individually.
In any event, the Jaynes may do what they seek to do and obtain the refinancing secured
by a second mortgage on the interests of both of them. Counsel for the Debtor shall submit an
appropriate Order.
cc:
Scott Borison, Esq., 5500 Buckeystown Pike, Frederick, MD 21703
Christina M. Jaynes, 11320 Country Club Road, New Market, MD 21774
Nancy S. Grigsby, Trustee, P.O. Box 958, Bowie, MD 20718
End of Memorandum
Case 06-18135 Doc 35 Filed 06/29/07 Page 2 of 2