Order denying creditor’s motion to dismiss or convert chapter 11 case for cause under 11 U.S.C. § 1112. Creditor, Debtor’s ex-wife, argued that cause existed to dismiss or convert Debtor’s chapter 11 case because Debtor failed to maintain a life insurance policy, pursuant to a divorce decree, that had lapsed pre-petition. According to Creditor, the obligation to maintain the life insurance policy was a domestic support obligation that first became payable post-petition. The Court held that the life-insurance obligation was a domestic support obligation. But the Court further held that the obligation did not first become payable post-petition. No premiums were due and owing under the lapsed policy, and there was no state court order requiring Debtor to replace the policy. Further, there were no other obligations related to the life insurance that were payable.
File:
Date:
01/10/2012