In re Jenkins, C/A No. 20-02610-JW

• Court: United States Bankruptcy Courts. Fourth Circuit. U.S. Bankruptcy Court — District of South Carolina
• Writing for the Court: John E. Waites, US Bankruptcy Judge
• Citation: 634 B.R. 471
• Parties: IN RE: Rapheal Maurice JENKINS, Debtor(s).
• Docket Number: C/A No. 20-02610-JW
• Decision Date: 06 October 2021

634 B.R. 471

IN RE: Rapheal Maurice JENKINS, Debtor(s).

C/A No. 20-02610-JW

United States Bankruptcy Court, D. South Carolina.

Signed October 6, 2021

Jason T. Moss, Moss & Associates, Attorneys, P.A., Columbia, SC, for Debtor(s).

ORDER

John E. Waites, US Bankruptcy Judge

634 B.R. 472

This matter comes before the Court upon an Application for Settlement and Compromise filed by Rapheal Maurice Jenkins ("Debtor") on September 16, 2021. According to the Application, Debtor settled a pre-petition personal injury cause of action for physical injuries due to an automobile accident for a payment in the amount of $23,500.00. From that payment, Debtor proposes to pay her attorney's fees in the amount of $8,225.00, litigation costs of $1,225.00, directly related medical bills of $4,689.00, and medical insurance subrogation liens of $169.22, which would then provide a net recovery to Debtor in the amount of $9,191.78.

Debtor disclosed the pre-petition cause of action, claimed it as exempt¹ and identified her state court counsel for the prosecution of the claim, Goings Law Firm, in her Schedules and Statements filed on July 15, 2020. At that time, Debtor valued the claim at zero since it was nonliquidated but still contingent on a trial or settlement but claimed 100% of the amount of the exemption allowed under applicable state law. No party timely objected to the exemption claim.

According to the recent opinion in In re Williams , 631 B.R. 398, 400–01 (Bankr. D.S.C. 2021), which cited In re Boyd , 618 B.R. 133, 174 (Bankr. D.S.C. 2020) and Wilson v. Dollar General Corporation, 717 F.3d 337, 343-44 (4th Cir. 2013), a chapter 13 may maintain and prosecute a cause of action on behalf of the estate in his own name, exclusive of the trustee, in any tribunal, and without court approval. Therefore, according to those cases, it was unnecessary to file the Application seeking approval² or to serve the entire creditor matrix and provide an objection period, which in turn delays the disbursement of settlement funds.³ Nevertheless, the Chapter 13 Trustee immediately received electronic notice of the Application upon its filing and has...