James E. Kane (VSB# 30081) 

KANE & PAPA, P.C. 

P. O. Box 508 

Richmond, Virginia 23218-0508 

Telephone (804) 225-9500 

Counsel for Debtor

IN THE UNITED STATES BANKRUPTCY COURT 

FOR THE EASTERN DISTRICT OF VIRGINIA 

Richmond Division 

IN RE: ) 

 ) 

ANGELICA MICHELLE GERALD ) Case No. 20−31979−KLP 

 ) Chapter 13 

 Debtor ) 

MEMORANDUM IN SUPPORT OF MOTION TO EXTEND AUTOMATIC STAY 

COMES NOW ANGELICA MICHELLE GERALD (the “Debtor”), by counsel, pursuant 

to 11 U.S.C. § 362(c)(3)(B) and files the following Memorandum in Support of Motion to Extend 

Automatic Stay and, and affirmatively states as follows: 

Jurisdiction 

1. Jurisdiction of this Court over the instant matter is based upon 28 U.S.C. §§ 1334 

and 157 in that this action arises in and relates to the bankruptcy case of the Debtor. 

2. This proceeding is a core proceeding under 28 U.S.C. § 157(b)(2)(A), (B), (K), and 

(O). 

3. Venue is proper pursuant to 28 U.S.C. § 1409. 

Background Facts 

4. On April 17, 2020 (hereinafter the “Petition Date”), the Debtor filed a petition for 

relief under Chapter 13 of the Bankruptcy Code (the “instant case”). 

5. Within the year prior to filing the instant case, Debtor has been a debtor in one (1) 

pending Chapter 13 bankruptcy case which was filed on August 14, 2018 and dismissed on or 

about September 30, 2019 (Case No. 18−34151−KRH) (the “previous case”). 

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6. The previous case was dismissed on the Chapter 13 Trustee’s Motion due to 

delinquent payments. In the previous case, the Debtor lost her second job and got behind on the 

Chapter 13 Plan payments. Debtor attempted to catch up on the delinquent payments once her 

income stabilized, but she was unable to. In March 2020 the Debtor secured a new second job 

with Amazon. The Debtor’s income is now stable and she able to fund a Chapter 13 Plan again. 

Facts of the Instant Case 

7. In the instant case, Debtor has proposed a Chapter 13 Plan (the “Plan”) that commits 

to pay the Trustee all projected disposable income, $50.00 per month for 1 month, then $321.00 

per month for 59 months. 

8. Among other provisions, the Plan proposes the following: Payment through the 

Trustee to Tower Federal Credit Union for a car payment, local and state taxes, and to unsecured 

creditors a dividend of one percent (1%). 

Discussion 

9. Because the instant case was commenced within one (1) year of the dismissal of 

the prior case, the automatic stay in the instant case will expire “with respect to any action taken 

with respect to a debt or property securing such debt or with respect to any lease . . . ” unless the 

Court extends the automatic stay. 11 U.S.C. § 362(c)(3)(A) and (B). 

10. Pursuant to 11 U.S.C. § 362(c)(3)(B), Debtor must demonstrate to the Court that 

the instant case was filed in good faith in order to obtain an extension of the automatic stay. 

11. If the Court finds grounds for presuming the instant case was filed “not in good 

faith,” § 362(c)(3)(C) would impose a burden on Debtors to overcome such presumption and prove 

good faith by clear and convincing evidence. If, however, the Court finds no grounds for presuming 

the instant case was filed “not in good faith,” Debtors must merely prove good faith by a 

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3 

preponderance of the evidence. In re Havner, 336 B.R. 98, 103 (Bankr. M.D.N.C. 2006); In re 

Ball, 336 B.R. 268, 273 (Bankr. M.D.N.C. 2006). 

12. Within the context of motions to continue the automatic stay pursuant to 

§ 362(c)(3), In re Chaney, 362 B.R. 690, 694 (Bankr. E.D. Va. 2007), instructs that the term “good 

faith” was defined judicially in the Fourth Circuit by Deans v. O’Donnell, 692 F.2d 968, 972 (4

th 

Cir. 1982), further refined by Neufeld v. Freeman, 794 F.2d 149, 152 (4

th 

Cir. 1986), and left 

unchanged by Congress when it created § 362(c)(3). Chaney at 694. 

13. Pursuant to Neufeld v. Freeman, good faith determinations require courts to 

consider, inter alia, “the percentage of proposed repayment, the debtor’s financial situation, the 

period of time payment will be made, the debtor’s employment history and prospects, the nature 

and amount of unsecured claims, the debtor’s past bankruptcy filings, the debtor’s honesty in 

representing facts, and any unusual or exceptional problems facing the particular debtor.” Id. at 

152, citing Deans v. O’Donnell, 692 F.2d at 972. The focus of the inquiry is “to determine whether 

or not . . . there has been ‘an abuse of the provisions, purpose, or spirit’ of Chapter 13 in the 

proposal or plan.” Neufeld at 152, citing Deans at 972, and quoting 9 Collier on Bankruptcy 9.20 

at 319 (14

th 

ed. 1978). 

14. In order to apply the Fourth Circuit’s definition of good faith in determining 

whether the automatic stay should be extended pursuant to § 362(c)(3), “the court must be satisfied 

that the plan in the new case will succeed where the plan in the prior case did not. Usually this will 

require a finding that some change in the financial or personal affairs of the debtor has occurred 

that will allow the debtor to perform under the terms of the plan in the new case. But the inquiry 

does not end there. The court needs to determine that the repetitive filing does not violate the spirit 

of the Bankruptcy Code. The new case must not be a ploy to frustrate creditors. It must represent 

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4 

a sincere effort on the part of the debtor to advance the goals and purposes of chapter 13.” Chaney 

at 694. 

Argument 

15. In the case sub judice there is a presumption that the instant case was filed “not in 

good faith” as to all creditors. Therefore, Debtor must prove by clear and convincing evidence that 

the instant case was filed in good faith. 

16. In the instant case, the Debtor has acted in good faith, and Debtor requests that the 

Court grant an extension of the automatic stay as to all creditors, as to Debtor and the Debtor’s 

property, and as to the property of the estate for the duration of the instant case. In support thereof, 

Debtor submits an Affidavit, which is attached hereto as Exhibit “1” and incorporated herein by 

this reference. 

17. Applying the Neufeld factors to Debtor’s circumstances and to this case leads to 

the following conclusions: 

a. Percentage of proposed repayment - The Plan proposes to pay a dividend of 1% to 

non-priority unsecured creditors. Such creditors would receive a dividend of 0% if Debtor were to 

file a Chapter 7 bankruptcy case. Application of this factor favors a finding of good faith. 

b. Debtor’s financial situation – Debtor has income from working with Public 

Partnerships for 10 years. In addition, the Debtor has secondary income from her part-time work 

for Amazon. Application of this factor favors a finding of good faith. 

c. Period of time payment will be made - The period of time in which payments will 

be made is reasonable and is based upon the Debtor’s best efforts. Application of this factor favors 

a finding of good faith. 

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d. Debtor’s employment history and prospects – Debtor has income from working 

with Public Partnerships for 10 years. In addition, the Debtor has secondary income from her parttime work for Amazon. Application of this factor favors a finding of good faith. 

e. Nature and amount of unsecured claims – Debtor’s Schedule F non-priority 

unsecured debts are estimated to be approximately $13,099. Debtor has not incurred any unsecured 

debt for luxury goods or services or any unsecured debt due to revolving credit accounts or pay 

day loans within the 90 days prior to filing the instant case. Application of this factor favors a 

finding of good faith. 

f. Debtor’s past bankruptcy filings - The instant Motion is required due to the fact 

that the Debtor’s previous case that was dismissed within one (1) year of the Filing Date hereof. 

The Affidavit attached hereto as Exhibit “1” describes fully the reasons that the previous case was 

dismissed. Debtor incorporates such explanation herein by this reference. Debtor’s hardships do 

not indicate an abuse of the bankruptcy system; rather, they indicate an honest but thus far 

unsuccessful attempt to financially reorganize. Application of this factor favors a finding of good 

faith. 

g. Debtor’s honesty in representing facts – Debtor has fully disclosed all assets, 

liabilities, and pertinent information regarding personal and financial affairs and is prepared to 

cooperate fully with the Chapter 13 Trustee. Application of this factor favors a finding of good 

faith. 

h. Any unusual or exceptional problems facing the particular debtors – There are no 

unusual or exceptional problems facing Debtor. Application of this factor favors a finding of good 

faith. 

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18. Debtor asserts that the instant case does not “violate the spirit of the Bankruptcy 

Code” and it is not “a ploy to frustrate creditors”; rather, it represents “a sincere effort on the part 

of the debtor to advance the goals and purposes of chapter 13”. See Chaney at 694. In support 

hereof, the Debtor asserts the following additional arguments: 

a. The timing of the petition – Between the dismissal of the previous case and the 

instant case, Debtor did not act in a manner so as to purposely delay payment of debts and did not 

delay in filing the instant case so as to intentionally frustrate creditors. Debtor’s actions in this 

regard indicate an intent to use the bankruptcy system to resolve debts in an appropriate manner. 

Application of this factor favors a finding of good faith. 

b. How the debt(s) arose – The debts in this case arose primarily over a period of time 

extending back several years. The debts were not the result of misuse of credit or luxury spending; 

rather, they arose as a result of ordinary living expenses that Debtor became unable to repay. 

Application of this factor favors a finding of good faith. 

c. The debtor’s motive in filing the petition – Debtor’s motive in filing this case is to 

apply best efforts to repay creditors and receive a fresh start through bankruptcy. Application of 

this factor favors a finding of good faith. 

d. How the debtor’s actions affected creditors – The Plan provisions and treatment of 

creditors are generally described in paragraph 7, supra. This factor will rarely favor a debtor, 

because “[f]iling for bankruptcy relief will almost always prejudice one's creditors.” Galanis, 334 

B.R. at 696. 

e. Changes in circumstance and ability to complete this case – The Affidavit attached 

hereto as Exhibit “1” describes fully the Debtor’s changes in circumstances and explain both the 

legitimate bases for the filing of this case as well as the Debtor’s ability to complete this case. 

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Debtor incorporates such explanations herein by this reference. Application of this factor favors a 

finding of good faith. 

WHEREFORE, for the foregoing reasons, ANGELICA MICHELLE GERALD 

respectfully requests this Honorable Court to enter an Order extending the automatic stay as to all 

creditors, as to Debtor and Debtor’s property, and as to the property of the estate for the duration 

of the instant case, and for such other and further relief as to the Court shall be deemed appropriate. 

Respectfully submitted, 

ANGELICA MICHELLE GERALD 

By Counsel: 

/s/ James E. Kane 

James E. Kane (VSB# 30081) 

KANE & PAPA, P.C. 

P. O. Box 508 

Richmond, Virginia 23218-0508 

Telephone (804) 225-9500 

Counsel for Debtor 

CERTIFICATE OF SERVICE 

I certify that on May 5, 2020, I have transmitted a true copy of the foregoing document 

electronically through the Court’s CM/ECF system or by mail to the Debtor, Chapter 13 trustee, 

the United States trustee if other than by the electronic means provided for at Local Bankruptcy 

Rule 2002-1, all attorneys appearing in the previous case as listed below, and to all creditors and 

parties in interest of the mailing matrix attached hereto. 

/s/ James E. Kane 

Counsel for Debtor 

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8 

IN THE UNITED STATES BANKRUPTCY COURT 

FOR THE EASTERN DISTRICT OF VIRGINIA 

Richmond Division 

IN RE: ) 

 ) 

ANGELICA MICHELLE GERALD ) Case No. 20−31979−KLP 

 ) Chapter 13 

 Debtor ) 



AFFIDAVIT OF ANGELICA MICHELLE GERALD 

BEFORE ME, the undersigned authority, personally appeared ANGELICA MICHELLE 

GERALD, known to me, and upon oath, stated as follows: 

1. My name is ANGELICA MICHELLE GERALD I am above the age of 18 years, 

and competent to make this affidavit. 

2. I have personal knowledge of the facts set forth in this affidavit. 

3. I reside at 9807 Mohawk Drive, King George, VA 22485. 

4. I have income from working with Public Partnerships. I am the debtor in the present 

bankruptcy case. In addition, I have second job with Amazon where I have worked for 2 months. 

5. Within the year prior to filing the instant case, I was a debtor in one (1) pending 

Chapter 13 bankruptcy case which was filed on August 14, 2018 and dismissed on or about 

September 30, 2019 (Case No. 18−34151−KRH) (the “previous case”). 

6. The previous case was dismissed on the Chapter 13 Trustee’s Motion due to 

delinquent payments. In the previous case, I lost my second job and got behind on the Chapter 13 

Plan payments. I attempted to catch up on the delinquent payments once my income stabilized, 

but I was unable to. In March 2020 I secured a new second job with Amazon. My income is now 

stable and I am able to fund a Chapter 13 Plan again. 

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7. I have listed all of my assets and all of my debts and have fully and accurately 

disclosed all of my income and expenses in the Schedules in this case. 

8. After the dismissal of my previous case, I acted as fast as I reasonably could to 

retain a bankruptcy attorney to file this case for me because I want to use the bankruptcy system 

to resolve my debts. 

10. My debts arose as a result of ordinary living expenses. The debt I have has 

accumulated over several years and is not the result of any purchases of luxury goods or services. 

11. I have also not incurred any unsecured debt due to revolving credit accounts or pay 

day loans within the 90 days prior to filing the instant case. 

12. I desire to use the bankruptcy system to obtain a fresh start and have not been 

attempting to evade my responsibilities or delay my creditors’ attempts to collect. 

13. My income is consistent and likely to remain so during this case. My household 

expenses are not likely to change substantially. I believe I will be able to make my payments to 

the Trustee and meet my other obligations as they come due throughout this case. 

 

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WITNESS the following signature and seal on April 17, 2020. 

/s/ ANGELICA MICHELLE GERALD (seal) 

 ANGELICA MICHELLE GERALD 

CERTIFICATE OF ACKNOWLEDGMENT 

State of Virginia 

City of Richmond; to wit: 

The foregoing instrument was acknowledged before me on April 17, 2020, by ANGELICA 

MICHELLE GERALD. 

 /s/ Suzanne Elizabeth Falkowski 

 Notary Public 

My Commission Expires: August 31, 2024 

Notary Registration Number: 7868756 

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PARTIES DESIGNATED AS "EXCLUDE" WERE NOT SERVED VIA USPS FIRST CLASS MAIL

PARTIES WITH A '+' AND DESIGNATED AS "CM/ECF E-SERVICE" RECEIVED ELECTRONIC NOTICE THROUGH THE CM/ECF SYSTEM

CASE INFO

1LABEL MATRIX FOR LOCAL NOTICING

04223

CASE 20-31979-KLP

EASTERN DISTRICT OF VIRGINIA

RICHMOND

THU APR 30 16-46-13 EDT 2020

AD ASTRA RECOVERY

7330 WEST 33RD STREET NORTH

SUITE 118

WICHITA KS 67205-9370

ASHLEY FUNDING SERVICES

P O BOX 10587

GREENVILLE SC 29603-0587

ASHLEY FUNDING SERVICES LLC

RESURGENT CAPITAL SERVICES

PO BOX 10587

GREENVILLE SC 29603-0587

CARL M BATES

341 DIAL 8668130912 CODE 8576180

P O BOX 1819

RICHMOND VA 23218-1819

CAPITAL ONE

ATTN BANKRUPTCY

PO BOX 30285

SALT LAKE CITY UT 84130-0285

CAPITAL ONE BANK USA NA

BY AMERICAN INFOSOURCE AS AGENT

4515 N SANTA FE AVE

OKLAHOMA CITY OK 73118-7901

CAVALRY PORTFOLIO SERVICES

ATTN BANKRUPTCY DEPARTMENT

500 SUMMIT LAKE STE 400

VALHALLA NY 10595-2322

CAVALRY SPV I LLC

500 SUMMIT LAKE DRIVE STE 400

VALHALLA NY 10595-2321

CENTRAL CREDIT SERVICES LLC

9550 REGENCY SQUARE BLVD

SUITE 500 A

JACKSONVILLE FL 32225-8169

COMENITY BANKVICTORIA SECRET

ATTN BANKRUPTCY DEPT

PO BOX 182125

COLUMBUS OH 43218-2125

CREDITORS COLLECTION SERVICE

ATTN BANKRUPTCY

PO BOX 21504

ROANOKE VA 24018-0152

DISCOVER FINANCIAL

ATTN BANKRUPTCY

PO BOX 3025

NEW ALBANY OH 43054-3025

DISCOVER FINANCIAL

PO BOX 3025

NEW ALBANY OH 43054-3025

JOHN P FITZGERALD III

OFFICE OF THE US TRUSTEE REGION 4 R

701 E BROAD STREET STE 4304

RICHMOND VA 23219-1849

DEBTOR

ANGELICA MICHELLE GERALD

9807 MOHAWK DR

KING GEORGE VA 22485-3636

EXCLUDE

JAMES E KANE

KANE PAPA PC

1313 EAST CARY STREET

PO BOX 508

RICHMOND VA 23218-0508

KING GEORGE TREASURERS OFFICE

10459 COURTHOUSE DR 100

KING GEORGE VA 22485-3865

MARINER FINANCE

8211 TOWN CENTER DR

NOTTINGHAM MD 21236-5904

MARINER FINANCE OF VA

2217 PLANK ROAD

FREDERICKSBURG VA 22401-5226

MARINER FINANCE LLC

ATTN BANKRUPTCY

8211 TOWN CENTER DRIVE

NOTTINGHAM MD 21236-5904

MARY WASHINGTON HOSPITAL

2300 FALL HILL AVE

SUITE 314

FREDERICKSBURG VA 22401-3343

MEDICREDIT INC

PO BOX 1629

MARYLAND HEIGHTS MO 63043-0629

MIDWEST RECOVERY SYSTEMS

PO BOX 899

FLORISSANT MO 63032-0899

NET CREDIT

200 WEST JACKSON BLVD

SUITE 1400

CHICAGO IL 60606-6929

PMAB LLC

4135 SOUTH STREAM BLVD SUITE 400

CHARLOTTE NC 28217-4636

PLAZA SERVICES LLC

ATTN MANNY WILLIAMS

110 HAMMOND DRIVE

SUITE 110

ATLANTA GA 30328-4806

Case 20-31979-KLP Doc 15 Filed 05/05/20 Entered 05/05/20 14:47:08 Desc Main

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PARTIES DESIGNATED AS "EXCLUDE" WERE NOT SERVED VIA USPS FIRST CLASS MAIL

PARTIES WITH A '+' AND DESIGNATED AS "CM/ECF E-SERVICE" RECEIVED ELECTRONIC NOTICE THROUGH THE CM/ECF SYSTEM

QUANTUM 3 GROUP LLC

COMENITY BANK

PO 788

KIRKLAND WA 98083-0788

QUANTUM3 GROUP LLC AS AGENT FOR

MOMA TRUST LLC

PO BOX 788

KIRKLAND WA 98083-0788

RECEIVABLE MANAGEMENT INC

7206 HULL RD

STE 211

RICHMOND VA 23235-0000

RECEIVABLE MANAGEMENT INC

BANKRUPTCY DEPTRECEIVABLES MANAGEMENT

S

7206 HULL RD STE 211

RICHMOND VA 23235-0000

SENTARA PRATT MEDICAL GROUP

PO BOX 791297

BALTIMORE MD 21279-1297

SPEEDY CASH

PO BOX 780408

WICHITA KS 67278-0408

TOWER FEDERAL CREDIT UNION

7901 SANDY SPRING ROAD

LAUREL MD 20707-3589

TOWER FEDERAL CREDIT UNION

ATTN BANKRUPTCY

PO BOX 123

ANNAPOLIS JUNCTION MD 20701-0123

UST SMG RICHMOND

OFFICE OF THE U S TRUSTEE

701 EAST BROAD ST SUITE 4304

RICHMOND VA 23219-1849

VIRGINIA DEPARTMENT OF TAXATIO

PO BOX 2369

RICHMOND VA 23218-2369

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