Esther L Bagley

IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF MARYLAND
at Greenbelt
In Re: 	Case No. 09-10933PM
Chapter 11
Esther L. Bagley,
Debtor.
MEMORANDUM OF DECISION
Before the court is the "Application for Authority to Employ Sallye A. Higgin as
Attorney for Debtor." The above-referenced bankruptcy case was filed on January 20,
2009, under Chapter 13. The Voluntary Petition was signed by Sallye A. Higgin ("Ms.
Higgin") as attorney. Ms. Higgin declared therein that she "[i]nformed the petitioner
that [he or she] may proceed under chapter 7, 11, 12, or 13 of title 11, United States
Code" and that she "explained the relief available under each such chapter[.]" The
Voluntary Petition further estimated the Debtor's liabilities to total between
$500,001.00 to $1,000,000.00. On February 18, 2009, and before the time Schedules
were filed, the Debtor moved to convert the bankruptcy case to a case under Chapter
11. An order of conversion was entered on February 23, 2009. On March 10, 2009, the
Debtor filed Schedules that reflected secured claims totaling $2,230,483.00 – secured
debt exceeding the limitations for such claims of $1,010,650.00 set by 11 U.S.C.
§ 109(e) for a Chapter 13 debtor as well as that estimated on the Voluntary Petition by
more than $1,000,000.00.
The Debtor, also with the assistance of Ms. Higgin, filed a previous case under
Chapter 13 on October 13, 2008. The Voluntary Petition in that case similarly
estimated the Debtor's liabilities to total between $500,001.00 to $1,000,000.00.
Despite having two extensions, the Debtor failed to file Schedules in that case. She
ultimately sought dismissal, relief being afforded by this court by Order entered
December 2, 2008. Prior to the Debtor's motion to dismiss the case, claims had been
filed by creditors holding secured claims in an amount aggregating $2,232,955.82. In
Date signed March 23, 2009
Entered: March 24, 2009 Case 09-10933 Doc 39 Filed 03/24/09 Page 1 of 2

short, Ms. Higgin filed a case under Chapter 13 for a debtor whom she knew or in the
exercise of the slightest diligence should have known was ineligible to file the case.
Had Ms. Higgin made reasonable inquiry into the assets and liabilities of the
Debtor before filing the cases, this Debtor would have filed under Chapter 11 in the
first instance. Having concerns about Ms. Higgins' unfamiliarity with handling larger
reorganization cases coupled with her apparent inadvertence by the filing of two
petitions under Chapter 13 for an ineligible debtor, this court cannot endorse the
employment sought.
An appropriate order will be entered.
cc: 	Debtor
Debtor's Counsel
United States Trustee
End of Memorandum of Decision
Case 09-10933 Doc 39 Filed 03/24/09 Page 2 of 2