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IN RE HOWELL.

Bankruptcy Reform Act — Individual Repayment Plan — Failure to File Plan — Dismissal of Plan — Vacation of Order of Dismissal

ROBINSON, Bankruptcy Judge

An order of dismissal of a Chapter 13 case for failure to timely file a plan under Rule 13-201 of the Bankruptcy Rules of Procedure and Section 1307(c)(3) of the Bankruptcy Code may be vacated if the failure was due to the pro sec debtor's lack of familiarity with the proper legal procedure, and there is no clear record of delay and contumacious conduct on the part of the debtor. See Sec. 1307(c)(3) at ¶ 13,020, Rule 924 at ¶ 20,354 and Rule 13-201 at ¶ 20,931.

[Digest of Opinion]

The debtor filed his Chapter 13 petition pro se. More than a month later, the clerk of the bankruptcy court informed the debtor by letter that he needed to file a Chapter 13 plan, a Chapter 13 statement and a summary and master list of creditors. Further, the letter stated that these papers had to be filed within ten days of the date of the letter or the case would be dismissed. Thirteen days later, an order was entered dismissing the debtor's case for failure to file a plan. On the date the order was entered, a Chapter 13 plan was filed by the debtor. Within ten days, the debtor, who had retained counsel, filed a "motion for dismissal to be vacated."

Under Rule 13-201 of the Bankruptcy Rules of Procedure, a Chapter 13 debtor must file a plan within 10 days of the filing of his petition. Section 1307(c)(3) of the Code permits the dismissal of the Chapter 13 case for failure to file a plan within the required time.

The court recognized that it had the authority to dismiss the case for failure to comply with court orders or rules of procedure. "However, dismissal is a drastic remedy and must be tempered by the careful exercise of judicial discretion." The court noted that generally dismissal is appropriate "only where there is a clear record of delay and contumacious conduct by the petitioner." The pro se debtor's failure to file a plan was found to most likely have been due to his lack of familiarity with proper legal procedure. Accordingly, the court granted relief from its previous order of dismissal under Bankruptcy Rule 924 and permitted the Chapter 13 petition to be filed.

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IN RE HOWELL, (N.D.Ga. 1980)
(Apr 8, 1980)