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In re Myrstol-Snyder

Citations: 530 B.R. 850; 2015 Bankr. LEXIS 1737; 74 Collier Bankr. Cas. 2d 133; 2015 WL 2400112Docket: Case No. 15-60189-12

Court: United States Bankruptcy Court, D. Montana; May 18, 2015; Us Bankruptcy; United States Bankruptcy Court

Narrative Opinion Summary

In this case, the U.S. Bankruptcy Court examined the Chapter 12 bankruptcy filing of an individual claiming status as a 'family farmer.' The Debtor, who had been evicted the day before filing her petition, sought relief under Chapter 12, which is reserved for family farmers or fishermen with regular annual income. The court evaluated the Debtor's financial situation, noting her limited farming activities and lack of income from such operations, which did not satisfy the statutory requirements for Chapter 12 eligibility. The court also addressed the Debtor's claims of automatic stay violations, finding no breach occurred as the eviction and removal of her belongings transpired before the bankruptcy filing. The Trustee's motion to dismiss was granted due to the Debtor's failure to meet the income criteria for a 'family farmer' under 11 U.S.C. 101(18)(A). Additionally, allegations of harassment and breach of the automatic stay were dismissed due to insufficient evidence. Consequently, the court ordered the dismissal of the bankruptcy case and instructed the Clerk to amend the case caption to reflect the Debtor's correct legal name.

Legal Issues Addressed

Automatic Stay and Eviction

Application: The court determined that the eviction and removal of the Debtor's possessions did not violate the automatic stay as these actions occurred prior to the bankruptcy filing.

Reasoning: Regarding the debtor's claims of violations of the automatic stay, the court notes that the debtor was evicted from the property before filing her bankruptcy petition, and thus, her eviction did not violate any stay.

Burden of Proof for Automatic Stay Violation

Application: The Debtor failed to provide evidence of harassment or removal of possessions that would constitute a violation of the automatic stay.

Reasoning: The court found that claims regarding harassment and the removal of a mailbox were unfounded, as there was no evidence to support those allegations.

Chapter 12 Bankruptcy Eligibility

Application: The court found that the Debtor did not qualify as a 'family farmer' under Chapter 12 due to insufficient income from farming operations.

Reasoning: In this case, the debtor has not produced crops or livestock and has reported no gross income from farming in the relevant periods, failing to meet the 50% requirement under 11 U.S.C. 101(18)(A)(i).

Definition of 'Family Farmer' under Bankruptcy Code

Application: The Debtor's activities did not meet the criteria of a 'family farmer' due to the lack of substantial income generation from farming operations.

Reasoning: The term 'family farmer' includes individuals involved in farming operations with debts not exceeding $3,792,650, where a substantial portion of their income derives from those operations.