Title Amended Memorandum Opinion entered in In re Denis Stanton Ibbott, Case No. 21-15920-MCR.
Maria Ellena Chavez-Ruark
Case Number

Presented with two motions to convert or dismiss the Debtor’s Chapter 13 case based on the Debtor’s alleged ineligibility for relief under Chapter 13, the Court determined that the Debtor is not eligible to be a Chapter 13 debtor because his total unsecured debt as of the petition date exceeded the statutory debt ceiling for Chapter 13.  In reaching its decision, the Court concluded that two state-court judgments entered against the Debtor were “noncontingent, liquidated, unsecured debts” for purposes of Section 109(e) of the Bankruptcy Code when the state court found the Debtor liable and rendered oral judgments against him before the bankruptcy filing and entered the judgments on the state-court docket after the bankruptcy filing.  The Court found that all events giving rise to the Debtor’s liability occurred prepetition and adopted the majority view that a debt arising from a judgment is not rendered contingent or unliquidated simply because it is subject to post-petition modification or reversal on appeal.