In re McLemore

In re McLemore

Opinion

MEMORANDUM DECISION

This Chapter 13 bankruptcy case is before the Court on six separate motions: (1) Trustee's Motion to Dismiss with Prejudice and Bar to Refiling (Doc. 45); (2) Trustee's Motion to Examine the Debtor's Transactions with Attorneys and Motion to Examine Attorney Fees (Doc. 46); (3) Debtor's Motion to Modify Chapter 13 Plan Post Confirmation (Doc. 51); (4) Application by Debtor to Employ Special Counsel, Nunc Pro Tunc, seeking to employ Benjamin E. Harrelson of Alexander Shunnarah Injury Lawyers, P.C. (Doc. 52); (5) Motion to Approve Settlement filed by Benjamin Harrelson with Shunnarah Injury Lawyers (Doc. 53); and (6) Application for Approval of Attorney Fees and Expenses filed by Benjamin Harrelson with Shunnarah Injury Lawyers (Doc. 54). The Court held hearings on these matters on September 30, 2021 and November 18, 2021. Following the hearings, the Court took these matters under advisement and allowed additional time for the parties to file briefs which [*2]  the parties have now filed. (Docs. 72, 82, 83 and 84). For the reasons set forth below, upon consideration of the motions, supplemental documents, briefs, and arguments of counsel, the Court finds as follows: Trustee's Motion to Examine Transactions is GRANTED; the Application to Employ Special Counsel Nunc Pro Tunc is DENIED; the Motion to Approve Settlement is GRANTED in part; and the Application for Approval of Attorney Fees and Expenses is DENIED; Debtor's Motion to Modify is GRANTED; and Trustee's Motion to Dismiss is DENIED without prejudice.

I. Facts

Debtor, Daryl McLemore filed a petition under Chapter 13 of the Bankruptcy Code in this Court on October 13, 2020. (Doc. 1). Debtor's Chapter 13 plan proposed to pay a "POT" of $5,075.00 to unsecured creditors. (Doc. 4). On December 8, 2020, Debtor filed an amended plan to disclose a pending personal injury claim and to provide that any unexempt proceeds would be paid to the Trustee for the benefit of unsecured creditors. (Doc. 23). Debtor subsequently amended the plan on December 10, 2020, but the provisions relating to Debtor's potential personal injury claim were not changed. (Doc. 27). On December 11, 2020, Debtor filed a Motion [*3]  for Authority to Substitute Collateral and to Use Cash Collateral wherein Debtor noted he had been injured in a motor vehicle accident, was considering pursuing a personal injury claim, and that the plan had been amended to reflect that any unexempt proceeds from the personal injury claim would be paid to the Trustee. (Doc. 30). Debtor's amended plan was confirmed on December 24, 2020. (Doc. 34).

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