25 B 3165
Creditor Elequin Securities, LLC filed a motion to dismiss Debtor’s chapter 7 case under 11 U.S.C. §§ 707(a) and 707(b) alleging that 1) Debtor, in bad faith, unjustifiably refused to pay his debts and 2) his debt was primarily consumer debt and therefore the requirements of section 707(b) must be satisfied.  In his response, the Debtor argued that Elequin did not properly serve Debtor with the motion to dismiss or provide sufficient notice of the hearing to creditors.  Debtor also disputed the substantive allegations of the motion to dismiss.  The court held an evidentiary hearing on the motion to dismiss and then took the matter under advisement.  HELD:
First, the motion was properly before the court.  Debtor and the creditors received adequate service and notice of the hearing on the motion to dismiss.  Second, a chapter 7 case may be dismissed for cause, which includes an unjustifiable refusal to pay debts.  Unjustified refusal does not require bad faith.  Elequin did not present evidence sufficient to satisfy section 707(a).  Finally, Debtor’s schedules list primarily business debt.  Section 707(b) applies to consumer debt.  Even if the debt was determined to be consumer debt, Elequin’s 707(b) argument is untimely.  Elequin filed its motion to dismiss beyond the 60-day deadline after the first set meeting of creditors under 11 U.S.C. § 341(a).