Docket: Bankruptcy No. LR 82-451M; Adv. No. 82-1129M
Court: United States Bankruptcy Court, E.D. Arkansas; September 26, 1985; Us Bankruptcy; United States Bankruptcy Court
Motions to dismiss by Fleet Mortgage Company and a contempt citation by the debtor were addressed in court. Frank J. Hubbard, Jr. filed for Chapter 7 bankruptcy on May 18, 1982. Fleet Mortgage Company, aware of the bankruptcy, proceeded with a foreclosure, auctioned the property, and evicted the debtor, who is disabled, along with his family, and removed their belongings. Following the eviction, the debtor converted his case to Chapter 13 and sought to reverse the sale and reclaim his property, along with damages. The court found Fleet Mortgage Company in contempt, set aside the sale, and ordered the return of the debtor’s property in April 1983. A subsequent agreement on April 4, 1984, required Fleet to either repair the homestead or pay for repairs but they failed to comply, instead using their own contractor without debtor consultation. On December 21, 1984, Fleet filed for dismissal due to nonpayment, while the debtor filed for contempt due to insufficient repairs and non-compliance. The court denied the dismissal motion, highlighting that payments were contingent on Fleet's compliance with the prior order. The court found Fleet in contempt of two orders and intended to disallow their claim of $7,649.80. However, upon review, it concluded that it lacked authority to do so and certified the contempt matter to the District Court, recommending a fine equal to Fleet’s claim and a $750 attorney fee, along with a requirement to release its lien. The debtor noted he was repairing a vehicle that the contractor claimed was a derelict.
