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In re Jeffrey Doyle Ofstad

Bankr. No.: 
21-50044
Chapter: 
7
Date of Decision: 
September 14, 2021
Issue: 
Whether the chapter 7 debtor's bankruptcy case should be dismissed under 11 U.S.C. § 305(a)(1)?
Ruling: 
Yes. Of the five factors a court considers before dismissing a bankruptcy case under § 305(a)(1), as set forth in Pennino v. Evergreen Presbyterian Ministries (In re Pennino), 299 B.R. 536, 539 (B.A.P. 8th Cir. 2003), four weighed heavily in favor of dismissal and the remaining factor was not applicable. The case was clearly a two-party dispute, there was no true chapter 7 case to administer because there were no scheduled creditors and no claims to be discharged, the parties were litigating in state court and that forum remained available to them, and all of the circumstances showed the debtor filed his bankruptcy case and the attendant adversary proceeding solely to create a new forum in which to litigate his dispute.
Full Bankruptcy Court Decision: 
Full Bankruptcy Appellate Panel/District Court Appeal Opinion: