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) 608-5833

United States Bankruptcy Court

Eastern District of Virginia

Alexandria Division

In re:

Linda M. and Michael J. Armellino, Case No. 20-12475-BFK

 Debtor. Chapter 11

 

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, and to shorten the notice period for a hearing on this 

matter.

 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 November 6, 2020, Linda M. Armellino filed a petition for relief under chapter 11 of 

the Bankruptcy Code. 

4. On November 23, 2020, Michael J. Armellino filed a petition for relief under chapter 11 

of the Bankruptcy Code, case number 20-12579-BFK.

5. On February 18, 2021, the two cases were substantively consolidated. 

6. On January 27, 2022, the Debtor filed a Report of Sale for real estate located at 409 Old 

Town Court, Alexandria, VA. Docket No. 134. 

7. The amount due to the seller was $710,019.52. Docket No. 134-1. 

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8. The last monthly operating report filed was for November 2021. Two separate reports 

were filed even though the cases have been substantively consolidated.1

 Docket Nos. 129 

and 130. 

9. Monthly reports are past due for December 2021 and January 2022. The February 2022 

report is due March 20, 2022. 

10. The Debtor owes United States Trustee fees for the 4th quarter of 2021. The fee was due 

January 31, 2022. 

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). 

 Cause exists to grant the requested relief:

(A) The failure to file monthly operating reports – 11 U.S.C. § 1112(b)(4)(H) – failure timely 

to provide information reasonably requested by the United States Trustee. Monthly 

reports are the “lifeblood” of a chapter 11 case. Given the amount of money received 

from the sale, it is important that the monthly reports be filed timely.

(B) The failure to pay United States Trustee fees – 11 U.S.C. § 1112(b)(4)(K) – failure to 

pay any fees required under section 123 of title 28. 

1 On June 21, 2021, the United States Trustee Program’s rule entitled Uniform Periodic Reports in Cases Filed 

Under Chapter 11 of Title 11, published at 28 C.F.R. § 58.8 (the “Final Rule”) became effective. The Final Rule 

requires that chapter 11 debtors-in-possession and trustees, other than in small business and subchapter V cases, file 

monthly operating reports and post-confirmation reports using streamlined, data-embedded, uniform forms in every 

judicial district where the U.S. Trustee Program operates.

The United States Trustee Program has posted on its website updated versions of the UST Form 11-MOR, Monthly 

Operating Reports (“MOR”) and UST Form 11-PCR, Post-confirmation Reports (“PCR”), that should be used for all 

reports filed after November 30, 2021. 

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

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

the estate.

 Pursuant to Local Bankruptcy Rule 9013-1(N), the Acting United States Trustee requests that 

the notice period for a hearing on this motion be shortened. 

 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, and to shorten 

the time period for a hearing on this matter. 

 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 10th day of March, 2022, I mailed, United States mail, first class, postage prepaid, a 

true copy of this motion to the Debtor and e-mailed a copy to Debtor’s attorney, 

Linda M Armellino

Michael J. Armellino

5811 Hampton Forest Way 

Fairfax, VA 22030

Richard G. Hall, Esq.

Email: richard.hall33@verizon.net

 /s/ Jack Frankel

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