On September 23, 2019, Mouzon Bass, the president of Ebenconcepts, Inc., which was the Debtor's former employer, assigned to the Debtor a whole life insurance policy with a cash value of $814,917.00 in consideration for the Debtor's shares in Ebenconcepts. At that time, Ebenconcepts was the beneficiary of the whole life insurance policy.
The Debtor, a nurse practitioner, had total unsecured debt in the amount of $370,574.97, of which ~$320,000 was for student loans, consisting of ~$27,000 of Parent Plus Loans and $289,000 of her own student loans. These student loans were incurred while obtaining her degrees and certifications as a nurse practitioner.
Morrone filed Chapter 13, without his spouse, listing as his main asset the marital residence, valued at $400,000 and owned as Tenants by the Entireties. Liens against this property consisted of first and second mortgages totaling $317,434.32, leaving $82,565.68 in equity in the property.
Additionally, John Brettell had judgment lien for a non-consumer debt against both the Morronne and his spouse for $57,000.
A pro se debtor failed to obtain the pre-bankruptcy credit counseling required by 11 U.S.C. § 109(h) and the bankruptcy court sua sponte issued an Order to Show Cause why the case should not be dismissed. Despite opposition from the Chapter 7 trustee, who, having been alerted by Wells Fargo, believed there were non-exempt funds available, the bankruptcy court held that the case must be dismissed.
