Burley Kearney

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF MARYLAND
at Greenbelt
IN RE: :
:
BURLEY KEARNEY : Case No. 04-22412PM
: Chapter 13
Debtor :
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MEMORANDUM OF DECISION
This bankruptcy case under Chapter 13 was initiated on May 20, 2004, by the filing of a
petition, the attorney’s Disclosure of Compensation, and the Social Security Number
Verification page. Counsel filed no Schedules, did not attend any meeting of creditors, and
moved to dismiss the case eight days later. The motion was granted by the court by an Order
entered June 4, 2004. At that time, the court issued an Order to counsel to justify the fee charged
of $1,650.00.
With commendable candor, counsel explains that this case was filed solely for the
purposes of delaying a foreclosure sale, Debtor having obtained a ratified sales contract with an
original closing date of May 28, 2004, and to cause the mortgage company then instituting
foreclosure to comply with its duty to supply pertinent information to enable the payoff of its
loan out of the sale proceeds. In other words, the court is being asked to ratify fees charged for
abuse of the processes of the Bankruptcy Court. At the same time, were the court to credit in full
the response of counsel, there is no question that the Debtor and his non-filing spouse benefitted
from this abuse of the bankruptcy process. It is doubtful that the creditors of the Debtor, other
than those secured creditors paid off at settlement, received any benefit from this exercise. What
then is the remedy for this abuse of process?
Date signed June 30, 2004
Case 04-22412 Doc 15 Filed 06/30/04 Page 1 of 2

The court will order disgorgement of the $1,650.00 said to have been received by counsel
as the result of filing this bankruptcy case and direct that it be refunded to the Debtor. If counsel
wishes to charge Debtor for the work done in connection with this abuse of the bankruptcy
process, he may do so, but only after disgorging the funds received.
An appropriate order will be entered.
cc:
Lawrence F. Regan, Jr., Esq., 17 West Jefferson Street, Rockville, MD 20850
Timothy P. Branigan, Esquire, P.O. Box 1902, Laurel MD 20725-1902
Burley Kearney, 54 Cross Country Court, Gaithersburg, MD 20879
United States Trustee, 6305 Ivy Lane, #600, Greenbelt MD 20770
End of Memorandum
Case 04-22412 Doc 15 Filed 06/30/04 Page 2 of 2