UNITED STATES BANKRUPTCY COURTEASTERN DISTRICT OF LOUISIANAIN RE: CASE NO.
RON WILSON, SR. 07-11862LARHONDA WILSON
SECTION ADEBTORS CHAPTER 13
On December 1, 2010, the Motion for Sanctions
filed by the United States Trustee (UST)came before the Court. At the beginning of the hearing, a request to bifurcate the issues presentedwas granted. Hearing on the sanctions to be awarded was deferred to a separate hearing, pendingdetermination of liability for sanctionable conduct. After trial on the merits, the Court ordered thatsimultaneous briefs be submitted no later than February 1, 2011. Upon the filing of briefs, thematter was taken under advisement.
I. Procedural History and Facts Leading to Expanded Order to Show Cause
Option One Mortgage Corporation (“Option One”) holds a mortgage on Ron and LaRhondaWilson’s (“Debtors”) home payable in monthly installments. On September 29, 2007, Debtors fileda voluntary petition under chapter 13 of the Bankruptcy Code. At the time of their bankruptcy filing,Debtors were in default on the mortgage, and a prepetition arrearage was owed. Debtors’ plan of reorganization provided for monthly payments to the trustee for satisfaction of the prepetitionarrearage, and Debtors’ direct payment of monthly postpetition mortgage installments to OptionOne. The plan was confirmed on December 21, 2007.
Case 07-11862 Doc 304 Filed 04/07/11 Entered 04/07/11 08:07:49 Main DocumentPage 1 of 26