Dawne A. Caselle

UNITED STATES BANKRUPTCY COURT
FOR THE EASTERN DISTRICT OF PENNSYLVANIA
In re:
DAWN A. CASELLE, Case No. 04-25900REF
Debtor Chapter 13
O R D E R
AND NOW, this 5 day of July, 2006, it is ORDERED that the motion filed by
Joel H. Ziev ("Movant") to dismiss this chapter 13 case is DENIED because I find, based upon
the totality of the circumstances present in this case, that Debtor filed this bankruptcy petition in
good faith. See In re Lillev. 91 F.3d491,496 (3d Cir. 1996); In re LeGree. 285 B.R. 615, 618
(Bankr. E.D. Pa. 2002); In re Cottle. 189 B.R. 591, 594 (Bankr. E.D. Pa. 1995).1
'Section 1307(c) of the Bankruptcy Code provides that a chapter 13 petition may be
dismissed for "cause." 11 U.S.C. §1307(c). In In re Lillev. 91 F.3d491, 496 (3d Cir. 1996), the
Third Circuit joined the Seventh, Ninth, and Tenth Circuits in holding that a debtor's lack of
good faith in filing a chapter 13 petition is sufficient "cause" for dismissal under Section 1307(c).
Recognizing that the term "good faith" is "incapable of precise definition," the Third Circuit
ruled that "the good faith inquiry is a fact intensive determination better left to the discretion of
the bankruptcy court... and must be assessed on a case by case basis in light of the totality of the
circumstances " Id. The Third Circuit then provided the following list of non-exhaustive factors
that are relevant to the good faith filing inquiry:
the nature of the debt...; the timing of the petition; how the debt
arose; the debtor's motive in filing the petition; how the debtor's
actions affected creditors; the debtor's treatment of creditors both
before and after the petition was filed; and whether the debtor has
been forthcoming with the bankruptcy court and the creditors.
Id. (quoting In re Love. 957 F.2d 1350, 1357 (7th Cir. 1992).
Movant bases his motion to dismiss upon the last factor, arguing that Debtor has not been
forthcoming, candid, and honest with this Court regarding her income and expenses. I disagree,
and I find, based upon Debtor's testimony during the 2004 examination conducted on February
Case 04-25900-ref Doc 67 Filed 07/05/06 Entered 07/05/06 15:28:37 Desc Main
Document Page 1 of 2

IT IS FURTHER ORDERED that a hearing shall be held on the Motion filed by
the Chapter 13 Trustee to dismiss this case and on confirmation of Debtor's amended chapter 13
plan
On: Thursday, August 17,2006
At: 9:00 a.m.
In: Courtroom No. 1,
Third Floor, The Madison
400 Washington St.
Reading, PA.
BY THE COURT
Richard E. Fehling
United States Bankruptcy Judge
10,2006, and during the December 8,2005 and March 23,2006 hearings, that Debtor has been
forthcoming, candid, and honest with this Court and with her creditors and that Debtor's
Schedule I (current income of Debtor) and Schedule J (current expenditures of Debtor) do not
contain misrepresentations or inaccuracies. Moreover, I note that Movant's major complaint
deals with the fact that Debtor conducts all of her business in cash and maintains no bank
accounts or individual client ledger sheets. While I agree that this may not be the most efficient
and sophisticated manner of conducting business, I find that it does not prove that Debtor has
been less than forthcoming, candid, or honest with this Court and her creditors, and it does not
establish "cause" to dismiss this case under Section 1307(c) of the Bankruptcy Code.
Case 04-25900-ref Doc 67 Filed 07/05/06 Entered 07/05/06 15:28:37 Desc Main
Document Page 2 of 2