Office of United States Trustee

1725 Duke Street, Suite 650

Alexandria, VA 22314

John P. Fitzgerald, III

Acting United States Trustee

For Region 4

Jack Frankel, Attorney, VSB # 15019

(703) 6508-5833

United States Bankruptcy Court

Eastern District of Virginia

Alexandria Division

In re:

Gaukhar Kabulovna Kussainova, Case No. 19-12371-BFK

 Debtor. Chapter 11

 Hearing: March 23, 2021, at 11:00 am 

Motion to Dismiss or Convert Case to Chapter 7

 Comes Now, John P. Fitzgerald, III, Acting United States Trustee for Region 4, and moves 

the Court to dismiss or convert this case to a case under chapter 7, whichever is in the best 

interests of the creditors and the estate.

 In support of this motion the following representations are made:

1. The Court has authority to hear and decide this matter. 28 U.S.C. Section 1334.

2. This is a core matter. 28 U.S.C. Section 157(b)(2)(A).

3. On July 19, 2019, the Debtor filed this case under chapter 11 of the Bankruptcy Code.

Docket No. 1.

4. The Income and Disbursement Recap in the December 2020 monthly financial report 

shows the Debtor had net income in two months in 2020, January and September. 

5. On January 31, 2020, the Debtor sold real estate located at 156 Martin Ln., Alexandria, 

VA 22304 for $1,057,500. Report of Sale, Docket No. 75. 

6. The Debtor had net income for January was $988,927. 

7. The Debtor’s net income for September 2020 was $684.

Case 19-12371-BFK Doc 120 Filed 02/17/21 Entered 02/17/21 09:20:22 Desc Main

Document Page 1 of 3
8. The Debtor incurred a loss for all the other months combined of $55,924. 

9. The Debtor has not filed a disclosure statement and plan of reorganization.

Argument

 The Court, for cause, after notice and hearing, may dismiss or convert a case to a case under 

chapter 7, whichever is in the best interests of the creditors and the estate. 11 U.S.C. § 

1112(b)(1).

 The test for deciding whether to dismiss or convert a chapter 11 case is a finding of objective 

futility and subjective bad faith. Carolin Corp. v. Miller, 886 F.2d 693, 695 (4th Cir. 1989).

 There is no definition of “good faith” in the Bankruptcy Code. This finding is fact-specific.

In re Sawyer, No. 07-10252-SSM, 2007 WL 1725627, at *5 (Bankr. E.D. Va. June 13, 2007), 

opinion corrected, No. 07-10252 SSM, 2007 WL 2110314 (Bankr. E.D. Va. July 17, 2007).

 “The objective futility inquiry is designed to insure that there is embodied in the petition some 

relation to the statutory objective of resuscitating a financially troubled [debtor].” In re Paolini, 

312 B.R. 295, 304 (Bankr. E.D. Va. 2004) (citation omitted) (quotation marks omitted).

 Chapter 11 cases should not remain on the docket like beached whales. Bankruptcy should 

not become a way of life. The goal of chapter 11 is to confirm a plan of reorganization. 

 This is not a complicated case. A disclosure statement and plan of reorganization should have 

been filed by now.

 Cause exists to grant the requested relief:

(A) Unreasonable delay in filing a disclosure statement and plan of reorganization. 

 The United States Trustee cannot find and specifically identify any unusual circumstances 

establishing that dismissing or converting this case is not in best interests of the creditors and the 

estate.

Case 19-12371-BFK Doc 120 Filed 02/17/21 Entered 02/17/21 09:20:22 Desc Main

Document Page 2 of 3
 Wherefore, the Acting United States Trustee for Region 4 moves the Court to dismiss or 

convert this case whichever is in the best interests of the creditors and the estate.

John P. Fitzgerald, III

Acting United States Trustee

For Region 4

/s/ Jack Frankel

Jack Frankel, Attorney, VSB # 15019

1725 Duke Street, Suite 650

Alexandria, VA 22314

(703) 608-5833

Certificate of Service

 I hereby certify that on the 17th day of February, 2021, I mailed, United States mail, first 

class, postage prepaid, a true copy of this motion and notice of motion and hearing to the Debtor 

and e-mailed a copy to the Debtor’s attorney.

Steven B. Ramsdell, Esq.

Tyler, Bartl & Ramsdell, P.L.C. 

300 N. Washington St., Suite 310 

Alexandria, VA 22314 

Email: sramsdell@tbrclaw.com

Gaukhar Kabulovna Kussainova

8200 Sparger St. 

McLean, VA 22102-1752

 /s/ Jack Frankel

Case 19-12371-BFK Doc 120 Filed 02/17/21 Entered 02/17/21 09:20:22 Desc Main

Document Page 3 of 3