Political Quotes

“Why is this rule necessary? Many reasons. For example, the debtor subsequently filing a chapter 13 plan will not attempt to make a single payment to his creditors. Without the bankruptcy court's confirmation of a plan, the creditor is unable to exercise any of his rights against the collateral. A case in the eighth circuit accurately highlights this problem. In that case, the debtors were frustrating the bank's efforts to foreclose on real property. As each foreclosure sale became imminent, the debtors would file a chapter 13 petition, which they would later have dismissed. They did this on three separate occasions. Each of the prior petitions was filed within 2 or 3 days of a scheduled foreclosure sale. In each case the creditors filed a motion for relief from automatic stay and each filing was within 6 months of the previous dismissal. Finally, after the court dismissed the third petition, the bank rescheduled the foreclosure proceedings as necessary for repayment. Incredibly, within 2 hours of the foreclosure sale the debtors filed a fourth petition under chapter 13. What happens, Mr. President, in situations like this: Let us assume that that property is badly needed to keep a business afloat or to keep someone's life afloat. Normally what they will do is cave in to the unscrupulous bankruptcy filer and take a ridiculously small offer to settle the case. That is unfair and simply should not happen.”