Judge: No bankruptcy protection for couple

A U.S. bankruptcy judge has ruled that a husband-and-wife-mortgage-business team cannot file for bankruptcy protection again for current and possible future debts arising from the case already heard by the court. The ruling further allows creditors to freely pursue debts owed by Kathleen Patricia Morris, also known as Tricia Morris, and David Duffy Herman of the Kihei-based Hawaii's Premiere Mortgage Co. In court records, the couple disclosed that between 100 and 199 creditors are owed between $1 million and $10 million in estimated liabilities. In January, U.S. Bankruptcy Judge Robert J. Faris dismissed a Chapter 11 bankruptcy reorganization petition by the couple. Without bankruptcy protection, creditors may file actions on their own to get what they are owed. Faris had set another hearing Monday to determine whether to dismiss the case with prejudice, which means the cases cannot be refiled, or without prejudice, where parties may refile their claims. But on Jan. 30, the U.S. trustee, along with Morris, Herman and their attorneys, agreed that the couple shall not receive bankruptcy protection for the case and any future cases for debts arising from the case, court records show. On Feb. 28, Faris granted a motion filed Jan. 31 to approve the stipulation to dismiss the case with prejudice. Faris noted that there were no timely objections to the motion. The couple has said in court statements that their "finances suffered" after Herman had a heart attack in Idaho in 2009. The statements said Morris tried to reorganize their debt and obtain hardship loan modifications. Read more at http://www.mauinews.com/page/content.detail/id/570782/Judge--No-bankruptcy-protection----.html