Terrie Elaine Hayes

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In re
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF WYOMING
TERRIE ELAINE HAYES,
Debtor.
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Case No. 	08-20207
Chapter 7
ORDER DENYING DEBTOR'S MOTION TO DISMISS
On Apri128, 2009, this matter came before the Court for an evidentiary hearing on
the Debtor's Motion to Voluntarily Dismiss Chapter 7 Bankruptcy and the chapter 7
Trustee's ("Trustee") objection. The parties were represented as stated on the record.
The Court having reviewed the record, the testimony, and evidence presented, is prepared
to rule.
Terrie Elaine Hayes ("Hayes") filed for chapter 7 bankruptcy protection on April
16, 2008 and received a discharge on August 5, 2008. Ms. Hayes is a single mother with
two minor children living at home. She was unemployed on the date the bankruptcy was
filed. On the date of the hearing, she testified that she was working part-time and was
searching for better employment.
Ms. Hayes seeks an order dismissing her chapter 7 bankruptcy case alleging that
she will get help from family to pay her creditors. On Schedule B, Ms. Hayes listed a
"1981 Crest double wide mobile home" with a value of $2,399.99. According to Ms.
Hayes' testimony, she purchased the mobile home for $25,000. After the second year of
payments, she lost her job and still owed $9,000.00. The debt was then paid in full by her
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mother. The mobile home sits on a rented mobile home lot.
At the §341 meeting of creditors, the Trustee questioned the value that Ms. Hayes
had provided for the mobile home on her Schedule B. On June 23, 2008, Ms. Hayes filed
an amended Schedule B valuing the mobile home at $9,672.00. Subsequently, Ms. Hayes
obtained a NADA value from a mobile home dealer and based upon the information
provided by Ms. Hayes, valued the mobile home at $37,430. Next, Ms. Hayes obtained a
fair market value assessment from a realtor who inspected the mobile home and with
adjustments for the market, valued the mobile home at $40,000. Ms. Hayes testified that
it was her opinion that her mobile home's value was between $20,000 and $25,000. Her
opinion was based on her conversation with a neighboring mobile home owner who had
recently sold his mobile home.
A debtor does not have an absolute right to voluntarily dismiss a Chapter 7 case.
The debtor must establish "cause." Cause is not defined under the Bankruptcy Code. The
question of whether there is cause for dismissal is decided on a case by-case basis. A
primary factor to be considered is the effect of dismissal on creditors. Voluntary
dismissal is not allowed where it will cause prejudice to the debtor's creditors. Prejudice
exists where assets which would be available for distribution are lost as a result of
dismissal 1•
The Debtor alleges in her motion and testified at the hearing that she believes she
lIn re Aupperle, 352 B.R. 42 (Bankr. N.J. 2005).
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can receive help from her family to pay her creditors upon dismissal of the bankruptcy.
Ms. Hayes testified that she spoke with the creditor, Sheridan Memorial Hospital and has
agreed to make a monthly payment of $50.00 per month toward the debt owed of over
$10,000. The Debtor had not made arrangements with the other creditors listed in her
schedules at the time of the hearing nor did she describe a plan of repayment to these
creditors.
The parties differ in their determination of the value of the mobile home. The
debtor believes the mobile home's value is between $20,000 - $25,000. Whereas, the
Trustee alleges the value is between $37,430 - $40,000. The Trustee based his
determination on the NADA value provided by the mobile home dealer and the real estate
market analysis.
The Court, in calculating a hypothetical sale of the mobile home as an asset of the
estate, using the average of $30,000 as the sale price, taking into consideration the
debtor's exemption, estimating the cost of sale at ten percent (10%) (to include realtor
fees and expenses), and the trustee's fee estimates that the net proceeds to the estate
would be approximately $17,000.
Ms. Hayes listed a total amount of unsecured nonpriority claims on her Schedule
F, of $28,4-54.04. According to the docket, the claims registry indicates that unsecured
claims have been filed in the amount of $15,832.42. Under the hypothetical sale, the
creditors with allowable claims would receive a 100% distribution. Ms. Hayes would
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receive a discharge of the balance of the unsecured nonpriority claims listed on her
Schedule F.
Ms. Hayes did not provide the court an alternative plan in which she intends to pay
her creditors. She testified that she had made arrangements with the hospital to pay
$50.00 a month. She did not have a plan for the balance of the other creditors.
It appears to the court that Ms. Hayes has not provided cause for the dismissal of
her Chapter 7 bankruptcy case. Her creditors would be prejudiced as under the
bankruptcy, those that have filed claims would be paid in fulL Without the bankruptcy,
the court is uncertain that the creditors would be paid. The Trustee's objection is
sustained.
IT IS ORDERED that debtor's motion to dismiss the chapter 7 is denied.
DATED thi~o?day of May, 2009.
Service to:
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Phillip Willoughby
Randy Royal
By the Court
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