In re Edwards

Thomas Edwards (debtor) filed for Chapter 13 bankruptcy. At the time of the filing, Edwards obtained his income through his ownership of a film business. His Chapter 13 plan was confirmed in June 1993. In October 1995, Edwards could no longer make payments under the plan. On February 7, 1996, the bankruptcy trustee filed a notice of default and requested a dismissal of the case. The next day, Edwards filed a motion for an extension of time to complete the payments under his plan. At the time of the motion, Edwards had made 30 payments and had six payments remaining. The basis for the motion was that Edwards’s business had recently failed and he was seeking employment that would enable him to make the remaining payments. On October 11, Edwards requested an additional extension of time to begin making the deferred payments because the employment he had obtained did not provide enough income for him to resume making the plan payments. On December 20, Edwards filed a motion for hardship discharge due to his inability to make any more payments under the plan. Edwards testified that his film business deteriorated after confirmation of his Chapter 13 plan due to increased market competition; after his business failed, Edwards had depression requiring medication, and his marriage ended; he searched extensively for employment but was unable to secure a job with sufficient income to make his plan payments; and the position he eventually obtained as a salesman left him with no disposable income for making any plan payments. The bankruptcy trustee objected to the discharge on the grounds that Edwards did not meet the requirements for such a discharge.