Erie County Councilman Ebert G. Beeman's Chapter 13 bankruptcy has recently been dismissed by a bankruptcy judge because of insufficient paperwork. Beeman allegedly did not file all required documentation relating to his bankruptcy, and did not submit a plan to repay creditors, which a Chapter 13 bankruptcy filing requires, according to the Erie Times-News. The dismissal was filed without prejudice, meaning that Beeman can file for bankruptcy again once he gets his paperwork in order - which he said he plans to do promptly.
Beeman filed for bankruptcy after the IRS moved to foreclose on several of his properties to satisfy a $2.1 million judgment for unpaid federal income taxes. To block the foreclosure, Beeman had to file bankruptcy quickly, without getting the necessary credit counseling 180 days before the filing. He listed assets of $355,950 and liabilities of $860,000.
When a consumer files for bankruptcy, an automatic stay takes effect, which blocks any collection action taken by his creditors, such as foreclosure. Now that the filing has been dismissed, Beeman "remains liable for all his debts as if the bankruptcy petition had not been filed," the bankruptcy judge said.
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