887 F.2d 1041 (10th Cir. 1989), 89-5079, Hall v. Vance
|Citation:||887 F.2d 1041|
|Party Name:||Jeffrey Raleigh HALL and Suzanne C. Hall, Plaintiffs-Appellants, v. Katheryn VANCE, Assistant United States Trustee, Defendant-Appellee.|
|Case Date:||October 16, 1989|
|Court:||United States Courts of Appeals, Court of Appeals for the Tenth Circuit|
Jeffrey Raleigh Hall and Suzanne C. Hall, pro se.
Stuart E. Schiffer, William Kanter, Carol Park Wood, and Richard A. Wieland of the U.S. Dept. of Justice, Wichita, Kan., and John E. Logan of the U.S. Dept. of Justice, Washington, D.C., for defendant-appellee.
Before LOGAN, MOORE and ANDERSON, Circuit Judges.
JOHN P. MOORE, Circuit Judge.
After examining the briefs and appellate record, this panel has determined unanimously that oral argument would not materially assist the determination of this appeal. See Fed.R.App.P. 34(a); 10th Cir.R. 34.1.9. The cause is therefore ordered submitted without oral argument.
Jeffrey and Suzanne Hall appeal a decision of the United States District Court for the Northern District of Oklahoma affirming the bankruptcy court's dismissal of their Chapter 11 petition. The Halls, appearing pro se, pose numerous challenges to the decisions of the bankruptcy and district courts. Upon review, we find that only one of these assignments of error has merit. We hereby affirm the district court's holding that the bankruptcy court properly dismissed the case but reverse the district court's affirmance that the dismissal be with prejudice.
The Halls filed a petition for Chapter 11 reorganization in the bankruptcy court for the Northern District of Oklahoma on October 21, 1987. Shortly after the exclusive 120-day period for filing a debtor's reorganization plan had expired, the United States Trustee (the Trustee) filed a motion to dismiss. Among the alleged grounds for dismissal was the Halls' failure to file a plan or disclosure statement within the 120-day period. Approximately one month later, AACO Automotive, a creditor of debtor Jeffrey Hall, also filed a motion to dismiss based on, among other grounds, the debtors' failure both to supply sufficient information with which a creditor could draw up a reasonable plan and to propose a plan or file a disclosure statement.
At a status conference held on March 31, 1988, the bankruptcy judge set deadlines for filing proof of claims, for the debtors' filing of objections, and for the debtors' submission of a disclosure statement and plan of reorganization. He also set a hearing for June 24, 1988, to consider approval of the disclosure statement and the two motions to dismiss.
The Halls failed to meet their deadlines, filing their objections three days late and their reorganization plan (the Plan) and disclosure statement (the Statement) one day late. They also filed their required monthly reports after the deadlines set by the Trustee. Both the Trustee and Sooner Federal, the Halls' largest secured creditor, filed objections to the Halls' Statement, claiming that it lacked adequate financial information, such as rental income flow, a description of assets and liabilities, and accrued administrative expenses.
At the hearing, the bankruptcy judge suggested to the Halls that he appoint a trustee to value the assets and income of their estate and manage the income generated. When Jeffrey Hall objected to the appointment of a trustee, the judge dismissed the case with prejudice.
In its order of dismissal, the bankruptcy court relied on 11 U.S.C. Secs. 1112(b)(2), (3) and (4), holding that the Halls' failure to meet the court's deadlines for filing objections to proofs of claim and for filing the Plan and Statement as well as their failure to meet the Trustee's deadlines for filing monthly reports supported dismissal under
Sec. 1112(b)(4). Dismissal under Sec. 1112(b)(2) was justified because of the inadequacies of the Statement, including failure to provide a description of the debtors' business with an enumeration of assets and liabilities, accounts receivable, the condition of the property, the maintenance required and the values associated with each parcel of real property; failure to provide to creditors a reason for the debtors' financial difficulty; failure to provide the creditors with debtors' cash requirements for operating the properties; and failure to denominate the claimants into classes and identify their treatment under the Plan. The court concluded that these omissions in the Statement...
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