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Gatley Bankruptcy Faces Dismissal as U.S. Trustee Cites Ongoing Incapacitation

Submitted by ckanon@abi.org on
A U.S. Trustee is asking a federal judge to dismiss or convert the personal bankruptcy of landlord Chris Gatley, saying that he continues to be "incapacitated" and hasn't filed several key monthly operating reports (MORs), Springfield News-Leader reported. The new filing comes days after Randall S. Reed Sr. filed a motion allegedly on behalf of Gatley asking the court to dismiss the case. The court then asked Reed to prove that he had power of attorney for Gatley, who is acting as his own lawyer for the chapter 11 proceeding. In January, a federal judge dismissed a chapter 11 bankruptcy for Gatley's rental company, 417 Rentals, saying that he did not have a viable plan to reorganize his business, didn't comply with court orders and failed to file MORs. Filings in that case said the company's debts amounted to about $19 million. Since then, dozens of Gatley's properties have been foreclosed and auctioned off. Acting U.S. Trustee <b>Daniel J. Casamatta</b> filed a motion asking a federal judge to either dismiss Gatley's remaining bankruptcy case or convert it to a chapter 7. The federal trustee wrote that Gatley didn't file required MORs for September, November, December or February, and only filed partial reports for October and January. The motion states that Gatley has been "incapacitated" and "unable to fulfill his responsibilities" as a debtor since he was shot in January and had missed scheduled meetings of creditors. The motion also accuses Gatley of transferring "a substantial number of his individually owned assets to 417 Rentals to avoid personal liability for code violations and to prevent the local taxing authorities from selling the properties to pay delinquent real estate taxes."
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