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In re Spinks

Name
IN RE: William B. SPINKS, Debtor.
Attorney(s)
Judson C. Hill, Gastin & Hill, Savannah, GA, for Debtor., O. Byron Meredith, III, Savannah, GA, for Trustee., Edward J. Coleman, III, Chief Judge Before the Court is the objection (dckt. 36) filed by pro se creditor Orlando A. Montoya ("Montoya") to confirmation of the Chapter 13 plain (dckt. 4) filed by William B. Spinks (the "Debtor"). This is the Debtor's second Chapter 13 case. In the Debtor's first case, filed on April 2, 2015, Montoya claimed priority treatment for unpaid wages pursuant to 11 U.S.C. § 507(a)(4), which requires such wages to have been earned within 180 days prior to the bankruptcy filing or to the debtor's cessation of operations. Before the Debtor completed payments under the plan, his 2015 case was dismissed on October 10, 2017. Ten days later, on October 20, 2017, the Debtor filed a second Chapter 13 case, in which Montoya was unable to claim priority treatment for the remaining unpaid wages because they were not earned within the 180-day "lookback" period. Montoya contends that this lookback period should be equitably tolled for the pendency of the Debtor's first bankruptcy case to allow his claim as a priority wage claim. For the reasons set forth below, the Court will overrule Montoya's objection., The facts in this case are not in dispute. From March 18, 2014, to January 8, 2015, Montoya worked for the Debtor as a tour guide. When Montoya's employment ended, the Debtor owed him a total of $1,125.00 in unpaid wages for the months of October, November, and December of 2014. Montoya sued the Debtor in magistrate court, but his collection efforts were interrupted when, on April 2, 2015, the Debtor filed a Chapter 13 petition (2015 dckt. 1), commencing Case No. 15-40495-MJK (the "first case"). On May 7, 2015, Montoya filed a proof of claim in the amount of $1,125.00, consisting of $1,072.50 for which he claimed priority treatment pursuant to 11 U.S.C. § 507(a)(4) and $52.50 in nonpriority wages. (2015 Claim 7-1)., On December 1, 2017, Montoya filed a proof of claim in the second case in the amount of $925.64. (Claim 2-1). Attached to the proof of claim, which was filed on an outdated form, were a series of emails between Montoya and the Debtor, a document entitled "Disbursement History by Claim ID" listing the disbursements to Montoya in the first case, and a letter from Montoya to the Court. (Claim 2-1, pp. 3-11). Pursuant to a deficiency notice entered that same day, Montoya was directed to file an amended proof of claim on a current form. (Dckt. 25). On December 13, 2017, Montoya filed an amended proof of claim on Official Form 410. (Claim 2-2). Question 12 on this form asks whether all or part of the claim is entitled to priority under 11 U.S.C. § 507(a). Montoya, however, did not check the box for priority treatment because his unpaid wages were not earned within 180 days before the second case, and he did not want to make a false statement on the form under penalty of perjury., On February 9, 2018, Montoya filed the instant objection to confirmation (dckt. 36) on the basis that the Debtor's Chapter 13 plan "reduces [Montoya's] wage claim to a non-priority status for no reason other than the Debtor's failure to comply with this court's order in the 2015 bankruptcy and Debtor's subsequent filing of another bankruptcy in 2017." Id. at p. 2. Montoya requests that the Court equitably toll the 180-day lookback period of § 507(a)(4) to accord priority status to $873.14 of his wage claim. Id. At a continued confirmation hearing on March 27, 2018, the Court heard testimony and argument from Montoya. Laura Grifka, counsel for the Chapter 13 Trustee, stated that the Chapter 13 Trustee does not believe Montoya's claim is entitled to priority status. The Debtor's counsel represented that the Debtor would not object to Montoya's claim as a priority., The Objection Of Orlando A. Montoya to Confirmation of Plan, pro se creditor, as to the treatment of his timely filed claim, Court's Claim No. 2, is taken under advisement by the Judge for ruling. Said claim shall be treated and paid through the Chapter 13 Plan pursuant to the findings set forth in the Order of the Court. If necessary, the Plan payment shall increase to pay the claim per the Order.

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