In re Blackwell

Chapter

MEMORANDUM DECISION RE: ELIGIBILITY

This matter is before the Court on this Court’s Orders Directing Briefing on *21 Chapter 13 Eligibility (“Briefing Orders”). Debtors Kenneth and Kathleen Blackwell (“Debtors”) are represented by attorney Cathleen Cooper Moran in their respective chapter 13 cases. The chapter 13 trustee, Devin Derham-Burk, is represented by attorney Nanette Dumas.

In the Briefing Orders, this Court raised the question of whether Debtors are eligible to be debtors under chapter 13 due to their debts exceeding the eligibility limits of 11 U.S.C. § 109 (e), and gave the parties an opportunity to brief the issue.

The Court has considered the briefs filed by the parties, other relevant documents filed in this case, and the arguments of the parties. For the reasons set forth below, the Court finds that Debtors are not eligible for chapter 13 relief.

I.FACTS

Debtors filed a joint chapter 13 petition on February 28, 2011 (11-51826-SLJ). In that case, Debtors listed secured debts of $2,442,933. The case was converted to chapter 7 on May 31, 2011 on the chapter 13 trustee’s motion, which was brought on eligibility grounds. Debtors received a chapter 7…