Case Summary:
Estate moved for sanctions against Debtor's counsel for filing a Chapter 13 petition solely to harass the estate and cause it unnecessary delay. The Estate had received a judgment of foreclosure against certain real property of Debtor and a sheriff's sale had been scheduled. On the date of the sheriff's sale Debtor filed a Chapter 7 petition, staying the sheriff's sale. The Estate then obtained relief from stay. A second sheriff's sale was scheduled. Debtor's counsel filed a Chapter 13 petition without schedules or plan shortly before the sheriff's sale was to take place. Another automatic stay was obtained. The period in which the Debtor may file a payment plan ended without any plan being filed. Debtor's counsel filed a motion to withdraw as counsel citing Debtor's failure to confer with him on a payment plan and to pay his retainer fee. Counsel's motion was granted and the Chapter 13 case was dismissed. The Estate then filed a motion for sanctions under Bankruptcy Rule 9011. The Estate claims that Debtor's counsel had no legal basis for filing the Chapter 13 petition before a discharge was entered in the prior Chapter 7 and that the Debtor's sole purpose in filing the Chapter 13 was to prevent the second sheriff's sale from proceeding. The Estate established that Debtor's counsel had violated Rule 9011. Sanctions was ordered for fees and expenses related to filing of the Chapter 13 petition.

Statute/Rule References:
11 U.S.C. § 348 -- Conversion
11 U.S.C. §706
Fed. R. Bankr. P. 9011 -- Sanctions
Fed. R. Civ. P. 11 -- Sanctions

Key Terms:
Sanctions