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In re King

United States Court of Appeals, Eighth Circuit

March 5, 2014

In re: Chester Wayne King, doing business as the King's Pickle, Formerly doing business as K.C. Country, Formerly doing business as Hoot 'n Anny's, Debtor; Frank Williams; Stephen Sherman Wyse, Appellants
v.
Chester Wayne King, Appellee

Submitted September 26, 2013

Appeal from the United States Bankruptcy Appellate Panel for the Eighth Circuit.

Frank Williams, Appellant, Pro se, Columbia, MO.

For Stephen Sherman Wyse, Appellant: Stephen Sherman Wyse, WYSE LAW FIRM, Columbia, MO.

For Chester Wayne King, Appellee: Harvey Allen Hoffman, Columbia, MO.

Before RILEY, Chief Judge, BYE and GRUENDER, Circuit Judges.

OPINION

Page 566

BYE, Circuit Judge.

Chester King moved for sanctions after Stephen Wyse, representing one of King's creditors, filed suit in state court seeking in part to recover a debt discharged by King's bankruptcy. After Wyse and his client, Frank Williams, failed to appear in opposition, the bankruptcy court[1] granted

Page 567

the motion. Wyse and Williams filed a motion for relief, which the bankruptcy court granted in part following an evidentiary hearing. Wyse and Williams filed a second motion for rehearing or relief, which the bankruptcy court denied. Wyse and Williams appealed to the Bankruptcy Appellate Panel (BAP), which affirmed. Wyse and Williams now appeal the orders granting in part the first motion for relief and denying the second motion for rehearing or relief. We affirm.

I

In 2008, King began borrowing money from Williams. After making several payments on an initial loan agreement, King negotiated with Williams to borrow more money. King and Williams agreed to incorporate the outstanding balance of the original loan as part of the principal of a new loan through which Williams provided King with additional funding. Between 2008 and April 2010, King and Williams repeated this process several times. As of April 12, 2010, King still owed Williams an unknown[2] amount (" the pre-conversion debt" ) on one such loan agreement.

In February 2010, King filed for Chapter 13 bankruptcy. Prior to filing, King notified Williams of his intention to file for bankruptcy. King indicated to Williams he would not list Williams as a creditor or the pre-conversion debt as one he would seek to discharge through the bankruptcy. King later petitioned to convert his Chapter 13 bankruptcy to a Chapter 7 bankruptcy, which the bankruptcy court granted on April 12, 2010. Nowhere in the documentation associated with ...


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