Kenneth N. Whitehurst, III, Esq., AUST, VSB No. 48919

Cecelia Ann Weschler, Esq., VSB No. 28245

Nicholas S. Herron, Esq., NJSB No. 03007-2008, PASB No. 208988

Office of the U.S. Trustee

200 Granby Street, Room 625

Norfolk, VA 23510

(757) 441-6012

UNITED STATES BANKRUPTCY COURT

EASTERN DISTRICT OF VIRGINIA

Norfolk Division 

In re: Crystal Renee Baker, 

 Debtor.

 19-72302-SCS

Chapter 13

MOTION TO DISMISS WITH PREJUDICE UNDER 11 U.S.C. §§ 1307(c), 349(a), AND 

105(a) AND ENJOINING DEBTOR FROM FILING ANOTHER CASE FOR FOUR 

YEARS

John P. Fitzgerald, III, Acting United States Trustee for Region Four, by counsel, files 

this Motion to Dismiss with Prejudice under sections 1307(c), 349(a), and 105(a) and impose a 

bar to refiling for a period of not less than four years. In support of his motion, the U.S. Trustee 

states:

JURISDICTION

1. The Court has jurisdiction pursuant to 28 U.S.C. §§ 1334(b) and 157(a) and the 

Order of Reference of the U.S. District Court for the Eastern District of Virginia dated August 

15, 1984. This is a core proceeding pursuant to 28 U.S.C. §§ 157(b)(2). Venue of this proceeding 

is proper under 28 U.S.C. §§ 1408 and 1409.

FACTS

2. On June 17, 2019 (Petition Date), the debtor filed a voluntary chapter 13 

bankruptcy petition under Title 11 of the United States Code. 

3. The debtor filed this case under the social security number XXX-XX-0384.

4. Michael P. Cotter serves as the Standing Chapter 13 Trustee in this case.

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5. On July 1, 2019, the debtor filed her Schedules and Statement of Financial Affairs 

(Schedules and Statements). See ECF No. 20.

6. The debtor signed the Schedules and Statements under penalty of perjury and 

attested that she read the Schedules and Statements prior to filing and that the information 

contained therein was true and correct to the best of her knowledge, information and belief. 

7. On July 1, 2019, the debtor filed her proposed chapter 13 plan. See ECF No. 21. 

8. The debtor disclosed that she owns a 2010 Acura TSX on her Schedule B. See

Schedule A/B, Part 2, Lines 3.1, ECF No. 20.

9. The Acura is subject to a lien held by North State Acceptance. See Schedule D, 

Part 1, Line 2.1, ECF No. 20.

10. The debtor failed to list North State on her creditor matrix. See Creditor Matrix, 

ECF No. 4. 

11. On July 5, 2017, North State filed a motion for relief as to the Acura. See ECF 

No. 23.

12. On August 5, 2019, the court entered an order granting relief from the automatic 

stay. See ECF No. 34. 

13. The debtor failed to appear at her 341(a) meeting of creditors held on July 22, 

2019. See ECF No. 28. 

14. The debtor failed to commence chapter 13 plan payments. See ECF No. 33. 

15. The debtor failed to provide proof of income and tax returns to the Standing 

Chapter 13 Trustee as required by 11 U.S.C. § 521. 

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16. The debtor has filed two previous bankruptcy petitions in the United States 

Bankruptcy Court for the Eastern District of Virginia. The bankruptcy petitions and disposition 

of each case are as follows: 

a. Case No. 06-70452-SCS, Chapter 7, filed April 5, 2006; discharge entered on 

July 10, 2006.

b. Case No. 14-71486-SCS, Chapter 7, filed April 23, 2014, pro se; discharge 

entered on July 31, 2014.

17. Each of the foregoing cases was filed under the social security number XXX-XX0384. See Exhibit 1 (Docket Reports).

18. On August 2, 2017, the Court entered an Order Imposing Fines and Ordering 

Disgorgement of Fees pursuant to 11 U.S.C. § 110 against the debtor. See In re Beverly, No. 16-

74102-SCS, ECF No. 47. See Exhibit 2 (Disgorgement Order). 

19. On May 10, 2018, the debtor submitted a vehicle loan application to North State 

under the social security number XXX-XX-6501. See Exhibit 3 (Application).

20. The debtor provided North State with pay advices and a 2017 w-2 bearing social 

security number XXX-XX-6501. See Exhibit 4 (Financial documents).

21. North State approved the debtor’s vehicle loan application based upon the 

information she provided. See Motion for Relief ¶ 17, ECF No. 23.

22. The 2017 w-2 reflects that the debtor earned $66,560. See Exhibit 4.

23. The debtor disclosed 2017 gross yearly income of $22,511 on her Statement of 

Financial Affairs. See Statement of Financial Affairs, Part 2, Question 4, ECF No. 20. 

24. On March 30, 2013, the debtor formed Pretty in Pink, LLC. See Exhibit 5 

(Formation documents). 

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25. Upon information and belief, the debtor operated Pretty in Pink through May 9, 

2017. See Exhibit 6 (SCC Report). 

26. The debtor failed to disclose Pretty in Pink in her Schedules and Statements. See

Statement of Financial Affairs, Part 11, Question 27, ECF No. 20.

27. On August 21, 2019, the U.S. Trustee received verification from the Social 

Security Administration that social security number XXX-XX-6501 is an invalid number. See

Exhibit 7 (SSA Correspondence). 

LEGAL ARGUMENT

28. The debtor’s conduct merits an order dismissing this case with prejudice, denying 

the discharge of her current debts in any future case, and imposing an injunction on refiling for a 

period of not less than four years. 

a. 11 U.S.C. § 1307(c)

29. The protections provided by Bankruptcy Code are reserved for the “honest but 

unfortunate debtor.” See Grogan v. Garner, 498 U.S. 279, 286-87, 111 S.Ct. 654, 112 L.Ed.2d 

755 (1991); see also In re An Unknown Group of Cases Seeking to be Filed, 79 B.R. 651, 653 

(Bankr. E.D.Va. 1987) (“The prospective debtors come by privilege. They come seeking much 

relief which bankruptcy can surely afford, but no right exists to say, I am perfectly entitled to 

come without terms.”) (citations omitted). This debtor is not the “honest but unfortunate debtor.” 

30. A court may dismiss a chapter 13 case “for cause.” 11 U.S.C. § 1307(c); see also 

No. v. Gorman, 891 F.3d 138, 140 (4th Cir. 2018). 

31. The term “cause” is not defined by the Bankruptcy Code, but section 1307(c) 

contains a non-exhaustive list of examples of “cause” for dismissal or conversion of a chapter 13 

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case. See 11 U.S.C. § 1307(c)(1)-(11); see also In re Pratola, 589 B.R. 779, 787 (N.D.Ill. 2018) 

(citations omitted). 

32. A debtor’s bad faith constitutes “cause” for dismissal under section 1307(c). See

In re Kestell, 99 F.3d 146, 148 (4th Cir. 1996).

33. The debtor has used one social security number to file bankruptcy petitions before 

this court and a separate false social security number to obtain credit.

34. As previously noted, the debtor filed three bankruptcy petition in this court under 

the social security number XXX-XX-0384. See Exhibit 1. 

35. The debtor submitted a vehicle loan application under the social security number 

XXX-XX-6501. See Exhibits 3.

36. The debtor filed this instant case to gain the protections of the automatic stay, but 

failed to include North State on her creditor matrix.

37. The debtor’s conduct of using a false social security number to obtain credit and 

manipulate the bankruptcy process is cause for dismissal under section 1307(c). See In re Leavitt, 

171 F.3d 1219, 1225 (9th Cir. 1999); see also In re Ciarcia, 578 B.R. 495, 502 (Bankr. D.Conn. 

2017); In re Cameron, No. 13-10115, 2013 WL 1686300, at *5 (Bankr. D.Mass. April 18, 2013); 

In re Belden, 144 B.R. 1010, 1021 (Bankr. D. Minn. 1992). 

38. The debtor’s failure to provide accurate disclosures and failure to fulfill her 

statutory duties imposed upon her by the Bankruptcy Code is additional cause for dismissal 

under section 1307(c). See In re Llanos, 578 B.R. 700, 709 (Bankr. D.P.R. 2017).

39. “The cornerstone of any bankruptcy case is a debtor's fidelity to candid and 

accurate financial disclosure.” In re Tornheim, 239 B.R. 677, 684 (Bankr. E.D.N.Y. 1999); see 

also In re Walker, 323 B.R. 188, 198 (Bankr. S.D.Tex. 2005).

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40. Courts expect a debtor that seeks its protection to deal with the court, trustee, and 

creditors with candor. In re Halishak, 337 B.R. 620, 624 (Bankr. N.D.Ohio 2005); see also In re 

Zaver, 520 B.R. 159, 166 (Bankr. M.D.Pa. 2014). 

41. The debtor failed to include North State on her creditor matrix, failed to 

accurately disclose her 2017 year to date income and failed to disclose her previous business 

ventures in her Schedules and Statements. The debtor’s lack of candor to the court, trustee, and 

parties in interest is further evidence of bad faith and is cause for dismissal under section 

1307(c). See In re Bouchard, 560 B.R. 385, 398 (Bankr. D.R.I. 2016).

42. Additionally, the debtor failed to appear at her 341(a) meeting of creditors, failed 

to commence chapter 13 plan payments and failed to produce evidence of income and tax returns

in violation of her statutory duties. See 11 U.S.C. §§ 343, 521, 1326(a)(1). Collectively, these 

actions provide additional grounds for dismissal. See In re Bernard, 40 F.3d 1028, 1030 n. 1 (9th 

Cir. 1994); see also In re Witkowski, 523 B.R. 300, 306-07 (1st Cir. BAP 2014) (citations 

omitted). 

b. 11 U.S.C. § 349(a)

43. Section 349(a) provides that a court may enter an order dismissing a case with 

prejudice and prohibit a debtor from obtaining a subsequent discharge of all existing debts. 11 

U.S.C. § 349(a); see also In re Tomlin, 105 F.3d 933, 937 (4th Cir. 1997) (citations omitted).

44. Prohibiting a debtor from obtaining a subsequent discharge of all existing debts is 

an appropriate remedy when the debtor has shown a pattern of “delay and contumacious 

conduct.” In re Martin–Trigona, 35 B.R. 596, 601 (Bankr. S.D.N.Y. 1983); see also Leavitt v. 

Soto (In re Leavitt), 171 F.3d 1219, 1223–24 (9th Cir. 1999).

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45. In determining whether to impose a permanent bar to the discharge of existing 

debts, the court must make a finding that the debtor’s behavior is egregious and demonstrates 

bad faith. Examples of bad faith behavior include “concealing information from the court, 

violating injunctions, or filing unauthorized petitions.” Tomlin, 105 F.3d at 937 (citations 

omitted). 

46. The debtor filed this case for the sole purpose of invoking the protections of this 

Court to shield her from the consequences of her fraudulent conduct. Moreover, the debtor filed 

this case without any intent to fulfil her statutory obligations required by the Bankruptcy Code.

The debtor’s actions are an affront to the court’s authority and responsibility to protect the 

bankruptcy system. See In re Norton, 319 B.R. 671, 684 (Bankr. D.Utah 2005) (“This Debtor has 

systematically manipulated the bankruptcy system and used it as her own personal shield from 

creditors’ collection efforts—such abusive conduct cannot be condoned and will not be 

tolerated.”).

47. The debtor has manipulated the bankruptcy system in the furtherance her 

fraudulent scheme. The debtor’s conduct is egregious. A dismissal order with prejudice 

prohibiting the debtor from obtaining a subsequent discharge of all existing debts is appropriate. 

See In re Johnson, 281 B.R. 269, 271 (Bankr. W.D.Ky. 2002); In re Singer, No. 00-08620-6B3, 

2001 WL 1825791, *3 (Bankr. M.D.Fla. Aug. 1, 2001); In re Covino, 245 B.R. 162, 169–70 

(Bankr. D.Idaho 2000). 

c. 11 U.S.C. § 105(a)

48. Pursuant to section 105(a), the bankruptcy court has authority under its inherent

powers to enjoin a debtor from refiling another case. In re Jolly 143 B.R. 383, 388 (E.D.Va.

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1992) aff'd, 45 F.3d 426 (4th Cir. 1994); In re Weaver, 222 B.R. 521, 522-23 (Bankr. E.D.Va. 

1998) (citations omitted). 

49. Enjoining a debtor from refiling another case is an appropriate sanction to combat 

abuses to the bankruptcy process. Weaver, 222 B.R. at 524; In re Robertson, 206 B.R. 826 

(Bankr. E.D.Va. 1996).

50. As noted above, the debtor failed to provide accurate financial information in her 

Schedules and Statements. Additionally, the debtor failed to comply with her statutory duties 

imposed upon her by the Bankruptcy Code. See 11 U.S.C. §§ 343, 521, 1326(a)(1).

51. The debtor also used a false social security number to obtain credit and failed to 

provide notice of the bankruptcy to North State. The debtor’s behavior, outlined above, reflects 

an abuse on the bankruptcy system. 

52. Given debtor’s egregious behavior, a bar on refiling for a period of no less than 

four years is appropriate. See In re Anderson, 248 B.R. 726, 727 (Bankr. S.D.N.Y. 2000) 

(permanent bar on filing another case for using a false social security number). 

CONCLUSION

WHEREFORE the U. S. Trustee prays that the Court enter an order dismissing this case 

with prejudice, prohibiting the debtor from obtaining a subsequent discharge of all existing 

debts, and that the debtor, Crystal Renee Baker, be barred from filing any case, under any 

chapter of the United States Bankruptcy Code, in any jurisdiction of the United States, for a 

period of no less than four years; and grant such further relief as the Court deems appropriate and 

just.

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Respectfully Submitted,

John P. Fitzgerald, III

Acting U.S. Trustee for Region Four

By /s/ Nicholas S. Herron

Kenneth N. Whitehurst, III, Esq.

Assistant U.S. Trustee

Nicholas S. Herron, Esq.

Trial Attorney

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CERTIFICATE OF SERVICE

I certify that on August 21, 2019 service on all attorney Users in this case was 

accomplished through the Notice of Electronic Filing, pursuant to CM/ECF Policy 9 of the United 

States Bankruptcy Court for the Eastern District of Virginia, Case Management/Electronic Case 

Files (CM/ECF) Policy Statement, Version 09/04/09. A copy of this Motion, Notice of Motion and 

exhibits was mailed on the same date by First Class U.S. Mail, postage prepaid addressed as 

follows: Crystal Renee Baker, 628 Timon Ct. #201, Virginia Beach, Virginia 23462 and sent via 

electronic correspondence to: crystalbakerva@outlook.com.

/s/ Nicholas S. Herron

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