UNITED STATES BANKRUPTCY COURT 

FOR THE 

EASTERN DISTRICT OF VIRGINIA 

Alexandria Division 

In the Matter of: 

 Chapter 13

NHAN CONG HUYNH

 Case No. 20-10402-BFK

 Debtor

MOTION TO DISMISS WITH PREJUDICE, 

NOTICE OF MOTION TO DISMISS 

AND 

NOTICE OF SCHEDULED HEARING ON THIS MOTION 

Thomas P. Gorman, trustee, moves pursuant to 11 U.S.C. §1307 for entry of an 

order dismissing this case with prejudice to refiling, and states in support thereof and as 

cause therefore the following: 

1. This case was commenced by the filing of a Chapter 13 Petition on February 7, 

2020. 

2. Debtor had previously filed another Chapter 13 Petition on July 9, 2019. (Ch. 

13 Case No. 19-12254-KHK, hereafter referred to as the “Prior Case”), which 

case was pending before this Court for a period of nine (9) days. One week 

after filing that Petition Debtor filed a Motion for Voluntary Dismissal of the 

Prior Case, which Motion was granted by an Order of Dismissal entered July 

18, 2019. 

3. Based on his March 10, 2020 Section 341 Meeting testimony in this case, 

Debtor filed the Prior Case solely to stop a foreclosure of investment property, 

and he then immediately sought dismissal of the Prior Case so that he could 

consummate a Contract of Sale for real estate and disburse the sales proceeds 

without Bankruptcy Court approval or intervention. 

4. Debtor did in fact sell the property in question (5738 Rolling Rd. Burke, Va. 

22030) immediately after dismissal of the Prior Case, and in July, 2019 Debtor 

received “roughly $80,000.00 net” after payment of liens and costs of sale. (See 

Statement of Financial Affairs, #18). 

5. Debtor contends that all of those proceeds are fully expended and not 

recoverable and, based on that theory, has proposed a 0% Plan in this case. 

6. In response to Trustee’s inquiry Debtor represents that he disposed of the 

$80,000.00 by transferring approximately $60,000.00 to his father, who Debtor 

represents is now deceased, and that the remainder of the sale proceeds were 

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Notice and Motion to Dismiss 

Nhan Cong Huynh, Case #20-10402-BFK 

was transferred to: a) his domestic relations law firm; and b) his ex-spouse on 

account of past due child support. 

7. Although Debtor did not file completion Schedules in the Prior Case he did file 

a detailed creditor matrix listing and delineating nineteen (19) different and 

specific creditors. (Case #19-12245-KHK; Dkt. 1; pp. 12-13). 

8. Neither Debtor’s father nor his domestic relations law firm were included in 

that detailed listing of creditors in the Prior Case. Therefore, the transfers made 

to them from Debtor’s post-dismissal liquidation of his real estate could not 

have been on account of antecedent debts, and could only have been in the 

nature of fraudulent conveyances. 

9. In short, Debtor used the bankruptcy process to file a Petition to stop a 

foreclosure and then immediately sought dismissal of that case so he could 

liquidate property and conduct fraudulent conveyances to insiders. Having 

accomplished that task he now wishes to proceed in this new Chapter 13 as if 

that bad faith filing-and-asset-liquidation had not happened and is asking the 

Court to approve a Plan calling for a 0% distribution to the unsecured creditors 

directly harmed by Debtor’s conduct. 

10. In light of that history Debtor’s proposal of a 0% Plan would be troubling 

enough, but Debtor’s bad faith in this regard is compounded by the fact that he 

discloses at Question 32 of Schedule B filed in this case that he, along with his 

sister, are 50/50 heirs to his father’s decedent’s estate comprised of “$60,000.00 

In the bank” (presumably the same $60,000.00 of sales proceeds Debtor 

gratuitously transferred to his father in between the two Petitions) and another 

parcel of real estate. 

11. Debtor’s 50% claim to that decedent’s estate makes a 0% Plan completely 

inappropriate in any event. Further, even if Debtor were to renounce that 

inheritance a 0% Plan would not meet the liquidation test since a hypothetical 

Chapter 7 Trustee could avoid Debtor’s fraudulent transfer to his father and 

recover that $60,000.00 for the benefit of unsecured creditors 

12. Because of his transfers he would not be entitled to a Chapter 7 discharged 

pursuant to 11 U.S.C. §727(a)(2), and will be unable to meet the “good faith” 

requirement of 11 U.S.C. §1325(a)(3) with anything less than a 100% Plan. 

13. Debtor’s manipulative conduct and abusive filing history has acted to the 

detriment of his creditors and should not be countenanced. Trustee requests 

that this case be dismissed with a bar to refiling for a period of not less than two 

years. Alternatively, the Court could determine it to be in the best interests of 

creditors to convert this case to a Chapter 7 where a Trustee could pursue 

recovery of the pre-petition transfers and seek denial of Debtor’s discharge. 

 WHEREFORE, Trustee prays that this case be dismissed with prejudice to 

Debtor refiling any bankruptcy case for a period of not less than two years. 

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Notice and Motion to Dismiss 

Nhan Cong Huynh, Case #20-10402-BFK 

Your rights may be affected. You should read these papers carefully and 

discuss them with your attorney, if you have one in this bankruptcy case. (If you 

do not have an attorney, you may wish to consult one.) 

If you do not wish the court to grant the relief sought in the motion, or if you 

want the court to consider your views on the motion, then on or before five business 

days prior to the hearing date, you or your attorney must: 

File with the court a written response with supporting memorandum as required 

by Local Bankruptcy Rule 9013-1(H). Unless a written response and 

supporting memorandum are filed and served by the date specified, the Court 

may deem any opposition waived, treat the motion as conceded, and issue an 

order granting the requested relief without further notice or hearing. If you mail 

your response to the court for filing, you must mail it early enough so the court 

will receive it on or before five business days prior to the scheduled hearing. 

You must mail a copy to the persons listed below. 

Attend the hearing to be held on April 9, 2020 at 1:30 p.m. in Courtroom #1 on the 

2nd floor, United States Bankruptcy Court, 200 South Washington Street, 

Alexandria, VA 22314. If no timely response has been filed opposing the relief 

requested, the court may grant the relief without holding a hearing. 

 A copy of any written response must be mailed to the following persons: 

 Thomas P. Gorman 

 300 North Washington Street, Ste. 400 

 Alexandria, VA 22314 

 Clerk of the Court 

 United States Bankruptcy Court 

200 South Washington Street 

Alexandria, VA 22314 

 If you or your attorney do not take steps, the court may decide that you do not 

oppose the relief sought in the motion and may enter an order granting that relief. 

Date: __March 17, 2020_____ __/s/ Thomas P. Gorman______ 

 Thomas P. Gorman 

 Chapter 13 Trustee 

 300 N. Washington Street, #400 

 Alexandria, VA 22314 

 (703) 836-2226 

 VSB 26421 

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Notice and Motion to Dismiss 

Nhan Cong Huynh, Case #20-10402-BFK 

CERTIFICATE OF SERVICE 

I hereby certify that I have this 17th day of March, 2020, served via ECF to authorized 

users or mailed a true copy of the foregoing Motion to Dismiss, Notice of Motion and 

Notice of Hearing to the following parties. 

Nhan Cong Huynh 

Chapter 13 Debtor 

2236 Greywing Street 

Woodbridge, VA 22191 

Nathan Fisher, Esq. 

Attorney for Debtor 

Fisher-Sandler, LLC 

3977 Chain Bridge Rd. #2 

Fairfax, VA 22030 

 ___/s/ Thomas P. Gorman_____ 

 Thomas P. Gorman 

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