(Bankr. E.D. Ky. Nov. 22, 2017)
The bankruptcy court grants the the creditors’ motion for sanctions pursuant to Bankruptcy Rule 9011. The creditors argued that the debtor filed her Chapter 11 petition in bad faith. The court finds that sanctions are appropriate because the debtor filed the petition without a legitimate bankruptcy purpose. The debtor sought the protection of the automatic stay but did not intend to reorganize or seek an orderly liquidation. Instead, the debtor sought to obtain a civil remedy—the stay of execution of the judgment against the debtor while her appeal was pending. Opinion below.
Attorneys for Debtor: Gess Mattingly & Atchison, William W. Allen, Stefan J. Bing, John Thomas Hamilton, Elizabeth Thompson
Attorney for Creditors: DelCotto Law Group PLLC, Jamie L. Harris
Author: Matt Lindblom