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UNITED STATES BANKRUPTCY COURT

NORTHERN DISTRICT OF FLORIDA
GAINESVILLE DIVISION
In re:

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)
CLINTON PORTIS,
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)
)
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Debtor.
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______________________________)

CASE No. 15-10274-KKS

CHAPTER 11

UNITED STATES TRUSTEES MOTION TO DISMISS OR CONVERT

CHAPTER 11 CASE
AND MEMORANDUM OF LAW

COMES NOW GUY G. GEBHARDT, Acting United States Trustee for Region 21, and
moves the Court for the dismissal or conversion of the above chapter 11 case pursuant to 11
U.S.C. 1112(b), and in support thereof states:
RELEVANT FACTS
1. On November 5, 2015 the Debtor filed a voluntary chapter 11 petition.
2. Pursuant to 28 U.S.C. 586 (a)(3) and (4), the United States Trustees duties include
supervising the administration of chapter 11 cases and monitoring deposit or investments under
section 345 of title 11. In order to fulfill this mandate, the United States Trustee requires debtors
to submit reports and other information, as well as comply with court orders.
3. Monthly financial reports are due to be filed in chapter 11 cases on or before the 21st
day of the following month. The monthly financial reports for November and December of 2015
have not been filed as of the date of this motion. These reports were due respectively on or

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before December 21, 2015 and January 21, 2016. These reports are now past due and
delinquent.
4. Quarterly fees are owed to the United States Trustee for each calendar quarter. The
fees for the fourth quarter of 2015 (ending December 31, 2015) are due on or before January 31,
2016. As of the filing of this motion, the United States Trustee has no record of the payment of
these fees. Because the Debtor has not filed monthly reports for the months of November and
December of 2015 the amount of fees owed for the fourth quarter of 2015 is estimated in the
amount of $325.00. In the event these fees are not paid on or before January 31, 2016, the
United States Trustee reserves the right to raise this as additional grounds for the dismissal or
conversion of this case.
5. The United States Trustee reserves the right to argue in support of this motion any
matter disclosed in any monthly financial report that may be filed by the Debtor prior to the
hearing on this motion, and likewise reserves the right to assert the failure to file timely any
reports that may become due on or prior to the date of any hearing held on this motion as
additional grounds in support of this motion.
6. On January 4, 2016 the United States Trustee sent an email to Debtors counsel that
stated in part:
I conducted the 341 meeting of Mr. Portis in Gainesville on December 17, 2015.
Mr. Brier represented Mr. Portis at this meeting.
At the meeting I requested certain documents be provided. As of this date, I have
no record of receiving anything, with the exception of the case management
summary filed on December 22.
My notes indicate the following items were requested:
1.
Proof of compliance with the domestic support obligation notice
requirement of Section 704(a)(10), made applicable to a chapter 11 debtor by
Sections 1106(a) and 1107(a).
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2.
3.
4.
5.

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Copy of 2014 federal income tax return.

Proof of opening of DIP bank account.
Proof of closing pre-petition bank account(s).
Proof of insurance on residence in Gainesville and on motor vehicle

The monthly financial report for November of 2015 was due on or before
December 21, 2015. As of this date that report has not been filed.
Please review and advise the status of the documents requested and when you
anticipate filing the November financial report.

7. On January 4, 2016 the United States Trustee received an email from the office of
Debtors counsel that stated in part:
1.
Attached are copies of the domestic support obligation notice requirements
that were sent out on December 17, 2015; and
2.
Mr. Portiss DIP account information is as follows: Wells Fargo Account
#[******]2947; Wells Fargo Routing # [*****]0248.
We are in the process of obtaining proof of insurance, tax returns and monthly
operating report. We will provide those as soon as possible. Thank you.

8. No other communication has been received from Debtors counsel. As of the date of
this motion, the Debtor has not provided the United States Trustee with a copy of his 2014
federal income tax return, proof of opening a debtor-in possession bank account (the US Trustee
was provided the bank account information as contained in the text of the January 4, 2016 email,
but no documentation was provided), proof of closing his pre-petition bank account(s), and proof
of insurance on the residence in Gainesville and on his motor vehicle. No monthly financial
reports have been filed since the inception of this case.

ARGUMENT & MEMORANDUM OF LAW

1. 11 U.S.C. 1112 (b)(1) provides in part that:

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... on request of a party in interest, and after notice and a hearing, the court
shall convert a case under this chapter to a case under chapter 7 or dismiss a case
under this chapter, whichever is in the best interests of creditors and the estate, for
cause....

2. 11 U.S.C. 1112 (b)(4) provides in part that:

For purposes of this subsection, the term cause includes (E) failure to comply with an order of the court;
(C) failure to maintain appropriate insurance that poses a risk to the estate
or to the public;
(F) unexcused failure to satisfy timely any filing or reporting requirement
established by this title or by any rule applicable to a case under this chapter;
(H) failure timely to provide information or attend meetings reasonably
requested by the United States trustee (or the bankruptcy administrator, if any);
(K) failure to pay any fees or charges required under chapter 123 of title 28;

3. The Court must enter an order of dismissal or conversion once cause is

established unless it makes a requisite finding under 1112 (b)(2), as follows:
The court may not convert a case under this chapter to a case under chapter 7 or
dismiss a case under this chapter if the court finds and specifically identifies unusual
circumstances establishing that converting or dismissing the case is not in the best
interests of creditors and the estate, and the debtor or any other party in interest
establishes that
(A) there is a reasonable likelihood that a plan will be confirmed within
the time frames established in sections 1121(e) and 1129(e) of this title, or if such
sections do not apply, within a reasonable period of time; and
(B) the grounds for converting or dismissing the case include an act or
omission of the debtor other than under paragraph (4)(A) (i) for which there exists a reasonable justification for the act or
omission; and
(ii) that will be cured with a reasonable period of time fixed by the
court.

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4. The Debtors failure to file monthly financial reports for November and December of
2015 and failure to provide a copy of his 2014 federal income tax return, proof of opening a
debtor-in possession bank account, and proof of closing his pre-petition bank account(s)
constitutes cause for dismissal or conversion under 11 U.S.C. 1112 (b)(4)(F) and (H).
5. The Debtors failure to file maintain insurance on his residence and his motor vehicle
constitutes cause for dismissal or conversion under 11 U.S.C. 1112 (b)(4)(C).
6. The Debtors failure to pay quarterly fees to the United States Trustee constitutes
cause for dismissal or conversion under 11 U.S.C. 1112 (b)(4)(K).
7. The United States Trustee has established cause for the dismissal or conversion of this
case. Absent a reasonable justification for the shortcomings and failures cited herein, a prompt
cure of same, and a finding of a reasonable likelihood that a plan will be confirmed within a
reasonable period of time, this case must be dismissed or converted, whichever is in the best
interests of creditors and the estate.
WHEREFORE, the United States Trustee moves for the dismissal or conversion of this
chapter 11 case, and for such other and further relief as is necessary and proper.
Respectfully submitted, this 26th day of January, 2016.
GUY G. GEBHARDT
Acting United States Trustee, Region 21

/s/ CHARLES F. EDWARDS

Charles F. Edwards
Assistant U.S. Trustee
110 East Park Avenue, #128
Tallahassee, FL 32301
Telephone No. 850-942-1660
Facsimile No. 850-942-1669
Florida Bar No. 270032
charles.edwards@usdoj.gov
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CERTIFICATE OF SERVICE
I HEREBY CERTIFY that a true and correct copy of the foregoing Motion, and
all exhibits or attachments thereto, if any, was furnished by United States Mail first class postage
prepaid to Clinton Portis, 3510 NE 156th Avenue, Gainesville, FL 32609; Steven H. Silton,
Esq., Cozen O'Connor, 33 S. 6th Street, Suite 4640, Minneapolis, MN 55402; and to other
parties in interest that are listed in the Courts electronic mailing matrix, by Notice of Electronic
Filing which will be sent by the CM/ECF system through the Clerk of Court, on this the 26th day
of January, 2016.

/s/ CHARLES F. EDWARDS

Charles F. Edwards