At page 76 Determining good faith in chapter 13 plan confirmation26 citing casesMost of these factors were ‘subsumed’ by 11 U.S.C. § 1325 (b) ... which narrowed the focus of the bankruptcy court to ‘look at factors such as whether the debtor has stated his debts and expenses accurately; whether he has made any fraudulent misrepresentation to mislead the bankruptcy court or wh…
- Marilyn Marshall v. Denise Blake, 885 F.3d 1065 (7th Cir. 2018).publishedThe bankruptcy court, exercising its sound discretion, is in the best position to determine when an evi‐ dentiary hearing on the issue of good faith is necessary.” Noreen v. Slattengren, 974 F.2d 75, 76 (8th Cir. 1992).
- Susan H. Mello v. Paul M. Wojciechowski, No. 16-6037 (B.A.P. 8th Cir. June 15, 2017).publishedThe bankruptcy court, exercising its sound discretion, is in the best position to determine when an evidentiary hearing on the issue of good faith is necessary." Noreen v. Slattengren, 974 F.2d 75, 76 (8th Cir. 1992).
- Mello v. Wojciechowski (In re Wojciechowski), 568 B.R. 682 (B.A.P. 8th Cir. 2017).publishedThe bankruptcy court, exercising its sound discretion, is in the best position to determine when an evidentiary hearing on the issue of good faith is necessary.” Noreen v. Slattengren, 974 F.2d 75, 76 (8th Cir. 1992).
- In Re Mains, 451 B.R. 428 (Bankr. W.D. Mich. 2011).publishedNoreen v. Slattengren, 974 F.2d 75, 76 (8th Cir.1992). 20 .
- In Re McNeely, 366 B.R. 542 (Bankr. N.D. W. Va. 2007).publishedConfirmation — Good Faith Concluding that the Houseboat is an over-encumbered item that is not necessary for the Debtors’ effective reorganization under Chapter 13 of the Bankruptcy Code, the court likewise concludes that confirmation of t…
- In Re Barr, 341 B.R. 181 (Bankr. M.D.N.C. 2006).published(Most of these factors were ‘subsumed’ by 11 U.S.C. § 1325 (b) ... which narrowed the focus of the bankruptcy court to ‘look at factors such as whether the debtor has stated his debts and expenses accurately; whether he…)
- In Re Smith, 328 B.R. 797 (Bankr. W.D. Mo. 2005).publishedSee Le-Maire, 898 F.2d at 1349; see also e.g., Molitor v. Eidson (In re Molitor), 76 F.3d 218, 220-221 (8th Cir.1996) (Court of Appeals confirmed that the totality of the circumstances analysis adopted by Estus remains in place and should…
- Kaelin v. Bassett (In Re Kaelin), 271 B.R. 316 (B.A.P. 8th Cir. 2002).published (examined totality of the circumstances in determining if chapter 13 plan filed in “bad faith)
- In Re Gillespie, 266 B.R. 721 (Bankr. N.D. Iowa 2001).publishedThe essential question is whether the plan “constitutes an abuse of the provisions, purpose or spirit of Chapter 13.” Noreen v. Slattengren, 974 F.2d 75, 76 (8th Cir.1992) (citing United States v. Estus (In re Estus), 695 F.2d 311, 316 (8t…
- In Re Cowan, 235 B.R. 912 (Bankr. W.D. Mo. 1999).publishedMost of these factors are considered to have been subsumed by 11 U.S.C. *919 § 1325(b), enacted in 1984, 9 Noreen v. Slattengren, 974 F.2d 75, 76 (8th Cir.1992), Handeen v. LeMaire, (In re LeMaire), 883 F.2d 1373, 1378-79 (8th Cir.1989); E…
Show 14 more citing cases
- Barger v. Hayes Cnty. Non-Stock Co-Op (In Re Barger), 233 B.R. 80 (B.A.P. 8th Cir. 1999).published Noreen v. Slattengren, 974 F.2d 75, 76 (8th Cir.1992); Handeen v. LeMaire (In re LeMaire), 898 F.2d 1346, 1349 (8th Cir.1990).
- In Re Turpen, 218 B.R. 908 (Bankr. N.D. Iowa 1998).publishedA proper inquiry into good faith “should [analyze] whether the plan constitutes an abuse of the provisions, purpose or *914 spirit of Chapter 13.” Noreen v. Slattengren, 974 F.2d 75, 76 (8th Cir.1992), citing United States v. Estus (In re…
- In Re Harlan, 179 B.R. 133 (Bankr. W.D. Ark. 1995).publishedNoreen v. Slattengren, 974 F.2d 75, 76 (8th Cir.1992).
- In Re Kellogg Square P'ship, 160 B.R. 343 (Bankr. D. Minn. 1993).publishedThe Eighth Circuit has since reaffirmed the applicability of this totality-of-circumstances analysis under § 1325(a)(3) in In re LeMaire, 898 F.2d 1346, 1359 (8th Cir.1990) (en banc) and Noreen v. Slattengren, 974 F.2d 75, 76 (8th Cir. 199…
- In Re Sitarz, 150 B.R. 710 (Bankr. D. Minn. 1993).published The Eighth Circuit recently reaffirmed the applicability of this totality-of-circumstances analysis in In re LeMaire, 898 F.2d at 1349 (en banc), and in Noreen v. Slattengren, 974 F.2d 75, 76 (8th Cir. 1992).
- In Re Cordes, 147 B.R. 498 (Bankr. D. Minn. 1992).published See also In re LeMaire, 898 F.2d at 1349 (en banc) (reaffirming applicability of Estus’s totality-of-circumstances analysis); Noreen v. Slattengren, 974 F.2d 75, 76 (8th Cir.1992).
- Mercy Hosp., Iowa City, Iowa, No. 23-00623 (Bankr. N.D. Iowa June 7, 2024).See Noreen v. Slattengren, 974 F.2d 75, 76 (8th Cir. 1992); see also In re Riverbend Leasing LLC, 458 B.R. 520, 529 (Bankr. S.D.
- Cutcliff v. Reuter (In Re Reuter), 427 B.R. 727 (Bankr. W.D. Mo. 2010).publishedSee Noreen v. Slattengren, 974 F.2d 75, 76 (8th Cir.1992).
- In Re Stitt, 403 B.R. 694 (Bankr. D. Idaho 2008).published(Most of these factors were ‘subsumed’ by 11 U.S.C. § 1325 (b) ... which narrowed the focus of the bankruptcy court....)
- Matter of Kelly, 217 B.R. 273 (Bankr. D. Neb. 1997).publishedSee Noreen v. Slattengren, 974 F.2d 75, 76 (8th Cir.1992).
- In Re Smith, 200 B.R. 213 (Bankr. E.D. Mo. 1996).published(discussing evolution of good faith analysis in Eighth Circuit)
- In Re McGillis, 370 B.R. 720 (Bankr. W.D. Mich. 2007).publishedSee, e.g., Noreen v. Slattengren, 974 F.2d 75, 76 (8th Cir.1992); In re Smith, 848 F.2d 813, 820 (7th Cir.1988); Education Assistance Corp. v. Zellner, 827 F.2d 1222, 1227 (8th Cir.1987); Reach v. Boyajian (In re Reach) 243 B.R. 851 (1stCi…
- Baxter, Barnee v. Johnson (In Re Johnson), 346 B.R. 256 (Bankr. S.D. Ga. 2006).publishedSee, e.g., Noreen v. Slattengren, 974 F.2d 75, 76 (8th Cir.1992); In re Smith, 848 F.2d 813, 820 (7th Cir.1988).
- In Re Wilcox, 251 B.R. 59 (Bankr. E.D. Ark. 2000).published (applying totality of the circumstances approach in good faith inquiry)
At page 77 Reviewing bad faith in chapter 13 plan filings15 citing casesaffirming finding of bad faith where debt- or filed Chapter 13 in anticipation of damage award in civil suit
- In Re Soost, 290 B.R. 116 (Bankr. D. Minn. 2003).publishedNoreen v. Slattengren, 974 F.2d 75, 77 (8th Cir.1992); In re LeMaire, 898 F.2d 1346, 1349-1352 (8th Cir.1990) (en banc); In re Banks, 248 B.R. 799, 803 (8th Cir. BAP 2000), aff'd, 267 F.3d 875 (8th Cir.2001); In re Nielsen, 211 B.R. 19, 21…
- Ronald W. Banks v. Sandra Vandiver, No. 99-6079 (B.A.P. 8th Cir. May 31, 2000).publishedNielsen v. DLC Investment, Inc. (In re Nielsen), 211 B.R. 19, 21 (B.A.P. 8th Cir. 1997);Noreen v. Slattengren, 974 F.2d 75, 77 (8th Cir. 1992); Handeen v. LeMaire (In re LeMaire), 898 F.2d 1346, 1349-52 (8th Cir. 1990). 4 The relevant inqu…
- Banks v. Vandiver (In Re Banks), 248 B.R. 799 (B.A.P. 8th Cir. 2000).publishedNielsen v. DLC Investment, Inc. (In re Nielsen), 211 B.R. 19, 21 (8th Cir. BAP 1997); Noreen v. Slattengren, 974 F.2d 75, 77 (8th Cir.1992); Handeen v. LeMaire (In re LeMaire), 898 F.2d 1346, 1349-52 (8th Cir.1990).
- Bayer v. Hill (In Re Bayer), 210 B.R. 794 (B.A.P. 8th Cir. 1997).published Noreen v. Slattengren, 974 F.2d 75, 77 (8th Cir.1992).
- Thomas N. Bayer v. Patricia Hill, No. 97-6017 (8th Cir. Aug. 12, 1997).publishedNoreen v. Slattengren, 974 F.2d 75, 77 (8th Cir. 1992).
- In Re Paul ROBINSON, Debtor. Paul ROBINSON, Appellant, v. Mary Elaine TENANTRY, Appellee, 987 F.2d 665 (10th Cir. 1993).publishedNoreen v. Slattengren, 974 F.2d 75, 77 (8th Cir.1992); In re Love, 957 F.2d 1350, 1354 (7th Cir.1992); Society Nat’l Bank v. Barrett (In re Barrett), 964 F.2d 588, 591 (6th Cir.1992); Jim Walter Homes, Inc. v. Saylors (In re Saylors), 869…
- In Re Sitarz, 150 B.R. 710 (Bankr. D. Minn. 1993).published The Eighth Circuit recently reaffirmed the applicability of this totality-of-circumstances analysis in In re LeMaire, 898 F.2d at 1349 (en banc), and in Noreen v. Slattengren, 974 F.2d 75, 76 (8th Cir. 1992).
- In Re Sellers, 285 B.R. 769 (Bankr. S.D. Ga. 2001).published(affirming finding of bad faith where debt- or filed Chapter 13 in anticipation of damage award in civil suit)
- In Re: Ronald W. Banks, Debtor, Ronald W. Banks v. Sandra Vandiver, the Am. Retirees Ass'n, Amicus on Behalf Of, 267 F.3d 875 (8th Cir. 2001).published (debtor's filing of Chapter 13 petition in anticipation of civil damage award against him evidenced his bad faith)
- John F. Ladika v. IRS, No. 97-6084 (B.A.P. 8th Cir. Jan. 30, 1998).publishedSee Noreen v. Slattengren, 974 F.2d 75, 77 (8th Cir. 1992); Handeen v. LeMaire (In re LeMaire), 898 F.2d 1346, 1350 (8th Cir. 1990); Nielsen, 211 B.R. at 21 .
Show 4 more citing cases
- Ladika v. Internal Revenue Serv. (In Re Ladika), 215 B.R. 720 (B.A.P. 8th Cir. 1998).publishedSee Noreen v. Slattengren, 974 F.2d 75, 77 (8th Cir.1992); Bandeen v. LeMaire (In re LeMaire), 898 F.2d 1346, 1350 (8th Cir.1990); Nielsen, 211 B.R. at 21 .
- Dennis Harker v. United States of Am. Internal Revenue Serv., 112 F.3d 513 (8th Cir. 1997).unpublishedSee Noreen v. Slattengren, 974 F.2d 75, 77 (8th Cir.1992); In re Love, 957 F.2d 1350, 1353 (7th Cir.1992); In re LeMaire, 898 F.2d 1346, 1349-50 (8th Cir.1990) (en banc).
- Dennis Harker v. United States, No. 96-3620 (8th Cir. Apr. 25, 1997).unpublishedSee Noreen v. Slattengren, 974 F.2d 75, 77 (8th Cir. 1992); In re Love, 957 F.2d 1350, 1353 (7th Cir. 1992); In re LeMaire, 898 F.2d 1346, 1349-50 (8th Cir. 1990) (en banc).
- In Re Norwood, 178 B.R. 683 (Bankr. E.D. Pa. 1995).published(affirming denial of confirmation where debtor filed Chapter 13 ease, in part, to prevent victim of sexual abuse from proceeding with civil law suit brought against him)
case properly dismissed where sole purpose was to avoid complying with orders of state court
- In Re Martin, 199 B.R. 175 (Bankr. E.D. Ark. 1996).published(case properly dismissed where sole purpose was to avoid complying with orders of state court)
- In Re Kilker, 155 B.R. 201 (Bankr. W.D. Ark. 1993).published(case properly dismissed where sole purpose was to avoid complying with orders of state court)
Other citing cases
- In Re Mattson, 241 B.R. 629 (Bankr. D. Minn. 1999).published
- In Re Cockings, 172 B.R. 257 (Bankr. E.D. Ark. 1994).published
v.
Starr Bridget SLATTENGREN, Appellee
Roger Noreen appeals from the order of the District Court [1] affirming the Bankruptcy Court’s [2] denial of Noreen’s Chapter 13 bankruptcy plan because it was not filed in good faith. We affirm the District Court.
In December 1989, Starr Slattengren filed a civil suit against Noreen in a Minnesota state court claiming damages stemming from Noreen’s sexual assault of Slat-tengren when she was a child. On October 8,1990, the state court set the trial date for February 19, 1991. On October 16, 1990, the state court ruled that Noreen was liable to Slattengren for her damages as a matter of law. [3] On February 8, 1991, eleven days before the scheduled start of the trial of the civil suit, Noreen filed a Chapter 13 bankruptcy petition in the Bankruptcy Court pursuant to 11 U.S.C. § 1321 (1988). His original Chapter 13 plan, dated February 5, called for him to make monthly payments of $200 over a three-year period.
Slattengren filed a Chapter 13 Proof of Claim in the Bankruptcy Court on Febru[*76] ary 22, 1991, stating that she had an unsecured, unliquidated, contingent claim against Noreen for $500,000. She moved the Bankruptcy Court to lift the automatic stay, imposed pursuant to 11 U.S.C. § 362(a) (1988), against her state court civil action. This motion was granted by the Bankruptcy Court on March 18, 1991. On March 25, Slattengren filed an objection to the confirmation of Noreen’s plan, claiming that it should not be confirmed because it was not filed in good faith. On March 30, Noreen filed an amended Chapter 13 plan calling for him to make monthly payments of $500 over a five-year period.
The confirmation hearing was held on April 11, 1991. Noreen asked the Bankruptcy Court to hold an evidentiary hearing on the issue of good faith, but the court took the matter under advisement without holding such a hearing. Following the confirmation hearing, but before the court issued its order, Noreen and Slattengren entered into a stipulation liquidating Slatten-gren’s state court claim. The stipulation permitted entry of judgment in the state court for $100,001. On May 29, 1991, the Bankruptcy Court issued its order denying Noreen’s proposed Chapter 13 plan because the court found that the plan was filed in bad faith. The court also dismissed Noreen’s Chapter 13 case. On appeal, the District Court affirmed the Bankruptcy Court’s decision that Noreen’s Chapter 13 plan was filed in bad faith. The District Court also held that the Bankruptcy Court erred in 'dismissing Noreen’s Chapter 13 case sua sponte and remanded the case to the Bankruptcy Court. On appeal, Noreen argues that the District Court erred in holding that the Bankruptcy Court was not required to hold an evidentiary hearing on the good faith issue, and that the District Court erred in affirming the Bankruptcy Court’s decision that Noreen’s Chapter 13 plan was not filed in good faith. [4]
A bankruptcy court shall confirm an otherwise appropriate Chapter 13 plan if “the plan has been proposed in good faith and not by any means forbidden by law.” 11 U.S.C. § 1325(a)(3) (1988). This requirement “demands a separate, independent determination.... [T]he proper inquiry should [analyze] whether the plan constitutes an abuse of the provisions, purpose or spirit of Chapter 13. The bankruptcy court must utilize its fact-finding expertise and judge each case on its own facts after considering all the circumstances of the case.” In re Estus, 695 F.2d 311, 316 (8th Cir.1982). Estus included a non-exclusive list of eleven factors that the court may find relevant in making its determination. See Estus, 695 F.2d at 317. Most of these factors were “subsum[ed]” by 11 U.S.C. § 1325(b) (1988) (enacted in 1984), which narrowed the focus of a bankruptcy court to “look at factors such as whether the debtor has stated his debts and expenses accurately; whether he has made any fraudulent misrepresentation to mislead the bankruptcy court; or whether he has unfairly manipulated the Bankruptcy Code.” Education Assistance Corp. v. Zellner, 827 F.2d 1222, 1227 (8th Cir.1987). The totality of the circumstances analysis adopted by Estus, however, remains in place. In re LeMaire, 898 F.2d 1346, 1349 (8th Cir.1990) (en banc).
Noreen argues that the totality of the circumstances analysis mandated by Estus and LeMaire requires the Bankruptcy Court to hold an evidentiary hearing on the issue of good faith. We disagree. Nothing in the statutes or case law requires a hearing every time the issue of good faith is raised in a Chapter 13 proceeding. The bankruptcy court, exercising its sound discretion, is in the best position to determine when an evidentiary hearing on the issue of good faith is necessary. We find no abuse of discretion in the Bankruptcy Court’s determination that this case did not require such a hearing. Accordingly, we do not disturb the District Court’s decision declining to require the Bankruptcy Court to hold an evidentiary hearing.
Noreen also challenges the District Court’s holding that the Bankruptcy Court’s finding that Noreen submitted his[*77] Chapter 13 plan in bad faith is not clearly erroneous. “[0]ur task here is to review the bankruptcy court’s factual findings under the clearly erroneous standard ... in order to determine whether [Noreen] proposed his Chapter 13 plan in good faith.” LeMaire, 898 F.2d at 1350. After reviewing the record, we cannot say that the Bankruptcy Court clearly erred in finding that Noreen’s plan was filed in bad faith. The Bankruptcy Court focused on three factors in finding that Noreen’s plan was filed in bad faith: (1) the plan was filed only eleven days before Slattengren’s civil suit (claiming damages resulting from Noreen’s sexual abuse of Slattengren) was set to go to trial, thereby preventing her from having her case heard; (2) Noreen’s Chapter 13 case was filed not because of debts that came due in the ordinary course, but in anticipation of the likely damage award resulting from Slattengren’s civil suit; and (3) the initial plan offered only a meager payment plan, which was increased only in response to Slattengren’s objection. [5] The Bankruptcy Court’s finding of bad faith thus is well supported. Cf. LeMaire, 898 F.2d at 1353 (“we believe that there is a particularly strong policy prohibiting the discharge of a debt resulting from a willful and malicious injury following an attempted murder”); [6] Neufeld v. Freeman, 794 F.2d 149, 153 (4th Cir.1986) (resort to Chapter 13 may indicate an abuse of the bankruptcy laws “especially where a major portion of the claims sought to be discharged arises out of pre-petition ... wrongful conduct and the debtor proposes only minimal repayment of these claims”).
The order of the District Court is affirmed.
.The Honorable Paul A. Magnuson, United States District Judge for the District of Minnesota.
. The Honorable Dennis D. O’Brien, United States Bankruptcy Judge for the District of Minnesota.
. The alleged misconduct of Noreen that served as the basis for Slattengren’s civil suit was the same conduct for which Noreen was convicted in state court in 1984 of criminal sexual conduct.
. Slattengren does not challenge the District Court’s ruling reversing the Bankruptcy Court’s sua sponte order dismissing Noreen’s Chapter 13 case.
. The trustee in this case was "incensed” by Noreen’s initial plan "because it was obviously proposed without any hints of good faith.” Transcript of April 11, 1991, Confirmation Hearing at 5, reprinted in Joint Appendix at 41, 45.
. Noreen argues that sexual abuse of a minor is "not as serious, from a public policy standpoint, as [attempted murder].” Appellant’s Brief at 10. We find this argument unpersuasive, and have no difficulty in concluding that the "strong policy” adverted to in In re LeMaire, 898 F.2d 1346, 1353 (8th Cir.1990) (en banc), is broad enough to encompass civil liability resulting from the sexual abuse of a minor.