Brenda Louise Smith

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF MARYLAND
at Greenbelt
IN RE: :
:
BRENDA LOUISE SMITH : Case No. 05-90649PM
: Chapter 13
Debtor :
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MEMORANDUM OF DECISION
This case comes before the court on the Debtor’s Amended Chapter 13 Plan and the
objections thereto. As pointed out in the Trustee’s argument at the hearing, this case presents the
classic “new debtor syndrome” in that the Debtor’s interest in this property was acquired
immediately prior to the filing of the bankruptcy case under Chapter 13, presumably to forestall a
foreclosure sale scheduled for December 21, 2005. For a discussion of this syndrome, see
generally In re McCarthy, 312 B.R. 413 (BC Nev. 2004, and Carolin Corp. v. Miller, 886 F.2d
693 (CA4 1989). In addition to thwarting foreclosure, the Debtor seeks to cram down her
automobile loan, and she has taken issue with the claims filed on behalf of her condominium
association.
This case was filed under the Bankruptcy Abuse Prevention and Consumer Protection Act
of 2005 that added § 1325(a)(7) to the Bankruptcy Code to the requirements for confirmation.
That section provides that the action of the debtor in filing the petition was in good faith.
Here, Debtor claims as exempt over $210,000.00 in equity in the home that was the
subject of this late transfer. Based upon the record presented, the court cannot find that the
Debtor has sustained her burden that the petition was filed in good faith. Considering the totality
Date signed May 25, 2006
Entered: May 26, 2006 Case 05-90649 Doc 45 Filed 05/26/06 Page 1 of 2

of the circumstances, good faith would be evidenced by paying all creditors in full. An
appropriate order will be entered.
cc:
Robert Haeger, Esq., 9535 Fern Hollowy Way, Gaithersburg, MD 20886
Nicole A. Williams, Esq., 7979 Old Georgetown Road, Suite 600, Bethesda, MD 20814
Brenda L. Smith, 13117 Thackery Place, Germantown, MD 20874
Timothy P. Branigan, Esquire, P.O. Box 1902, Laurel MD 20725-1902
End of Memorandum
Case 05-90649 Doc 45 Filed 05/26/06 Page 2 of 2