Lorenzo Luciano Lopez v. Lon A. Jenkins and Auntie Tut Trust

Summary

The United States Bankruptcy Appellate Panel of the Tenth Circuit affirmed the dismissal of Lorenzo Luciano Lopez’s Chapter 13 case and related filing restrictions. The court held that a debtor’s right to dismissal under 11 U.S.C. § 1307(b), although generally absolute, is not necessarily immediate or unconditional, and that the bankruptcy court could conduct a hearing and rule on a pending automatic-stay-relief motion before entering the dismissal order. The court also concluded that the bankruptcy court adequately supported its findings of bad faith under Federal Rule of Bankruptcy Procedure 7052.

Holdings

1. Although § 1307(b) gives an eligible chapter 13 debtor an absolute right to dismissal, the dismissal need not be entered immediately or unconditionally.
2. The bankruptcy court did not err by conducting a hearing or delaying entry of the dismissal order to rule on the pending motion for relief from the automatic stay.
3. The 180-day filing restriction was required by 11 U.S.C. § 109(g)(2) because Lopez requested and obtained voluntary dismissal after a request for relief from the automatic stay had been filed.
4. The bankruptcy court's findings and explanation were sufficient under Rule 7052.

Questions Presented

1. Whether a chapter 13 debtor's motion for voluntary dismissal under 11 U.S.C. § 1307(b) requires immediate and unconditional dismissal.
2. Whether the bankruptcy court may conduct a hearing and delay entry of a dismissal order to decide a pending motion for relief from the automatic stay.
3. Whether the bankruptcy court erred by imposing a 180-day restriction on refiling under 11 U.S.C. § 109(g)(2).
4. Whether the bankruptcy court's findings and explanation satisfied Federal Rule of Bankruptcy Procedure 7052.

Disposition

affirmed